Landlord Guide

When it comes to letting and managing your property our knowledge is second to none. With over 185 years of experience and one of the longest established firms of property consultants in Yorkshire we are here to look after your interests either as a first time investor or a more established landlord. Our procedures comply with the Royal Institution of Chartered Surveyors (RICS) bylaws and rules thus providing you with a guarantee that both your money and your asset are safe. Our dedicated residential lettings staff have an in-depth knowledge of the local markets and are able to assist you through all aspects of the letting and management of your property.

Services

You can select from our range of services especially designed to meet your individual requirements. These include:

• Letting Only
• Rent Collection
• Full Management

Most landlords choose our full management service which includes accounts management, regular property visits and tenant liaison, offering you peace of mind knowing that your property is in capable hands. Our terms of business provide further details of the services available.

Consent to Let

The first thing you must do when deciding to rent your property is to obtain the necessary consents from any other interested parties and these may include:

Mortgage Company

If you have a mortgage or other loan secured on your property you must obtain approval from your lender before you enter into a tenancy agreement. We require a copy of the lenders written consent and details of any specific terms before we can arrange a tenancy on your behalf.

Insurance

As landlord you are responsible for buildings insurance during the tenancy. It is also advisable to have contents insurance even if the property is largely unfurnished because the buildings policy will not cover your carpets and curtains etc. in the event of a claim. It is essential you advise your insurance company that the property is to be let and ensure that you will be appropriately insured and covered for legal liability to third parties. We can provide you with details of a specialist landlord’s buildings and contents insurance company if required.

Leasehold Property

If your property is leasehold (usually flats and maisonettes) you may need to obtain permission to let from the freeholders or management company. You will need to check the terms of your head lease for this information and also provide a copy to us to ensure any relevant obligations are passed on to your tenant. You should also make arrangements to continue to pay any service charges directly.

Joint Ownership

If the property is owned by more than one person, consent for letting must be obtained by each joint owner. Each joint owner must sign our terms of business.

Tax

Rental income is subject to income tax. If you are a UK resident you will need to declare the income on a self-assessment tax return and if one is not issued automatically you have a legal obligation to inform the Inland Revenue of any liability. Your liability could be reduced by taking into account deductible expenses such as insurance costs, service charges, letting agent fees, legal charges etc. As the Inland Revenue assesses your income individually, a selfassessment return must be completed for each legal owner. If in doubt it is in your best interest to seek qualified advice from the Inland Revenue or a tax advisor.

Overseas Client

If you are planning to live abroad or be out of the country for more than six months in any tax year, whilst your property is rented you are likely to be classified by the Inland Revenue as non-resident for tax purposes. Dacre, Son and Hartley has a statutory obligation to deduct basic rate tax from rental income received before accounting to your bank. However, you can apply to the Inland Revenue for approval to be exempt from tax deduction at source. We can provide you with a copy of the relevant application form or it can be downloaded from the Inland Revenue’s website (www.hmrc.gov.uk). An application form must be completed for each individual. If you are going abroad whilst your house is being rented we recommend you arrange for someone in the UK to be given power of attorney or authority (in writing) to act as your proxy

Property Condition

The lettings market is very competitive so in order to attract the most suitable tenants at the most favourable rental levels it is essential that your property is presented in the best possible condition.

Decoration

Any small decorative defects or marks which detract from the appearance of the property should be made good prior to letting. In some cases it may be advisable to re-decorate individual rooms or even the entire property to ensure the best possible standard is set. We recommend easily maintained, wipe-clean, neutral paint finishes be used as it will be much easier and cheaper to freshen up between tenancies. It is also essential to leave the property thoroughly clean throughout, including the kitchen and bathroom fittings, carpets and curtains. This will help to secure a tenant more quickly and indicate to tenants that the property is well cared for and they are more inclined to maintain it to a good standard during the tenancy.

Furnished or Unfurnished

Most properties are let on an unfurnished basis since the provision of furnishings is unlikely to significantly increase the rental income and also resulting in less wear and tear. Unfurnished properties should include floor-coverings, curtains and light fittings. Most tenants will also expect to find a cooker. Furnished properties should include suitable furniture for each room (a bed in each bedroom, a dining table and chairs in the dining room, sofa in the sitting room etc.). Kitchen white goods would be expected. Should you decide to let the property with furniture and equipment this must be safe to use and comply with current legislation.

Garden

A garden should be left in the condition you would wish to find it. Once the property has been let a tenant is usually responsible for the general upkeep of the garden to include cutting of the lawn and weeding. Any large hedges or trees may require special attention for which the tenant is not usually liable. Increasingly, landlords are arranging garden maintenance themselves and including the cost within the rent in order to retain control and quality. Should you decide not to arrange a garden maintenance contract we would recommend you provide the tenant with the appropriate tools in order to maintain the garden. The garage (if any) should be swept and tidy

Tenancy Preparation

Tenant Guide

It is good practice to provide a folder of useful information to assist tenants during their tenancy. This will help them settle in more quickly and gives them a good impression. Some essential items would include instruction manuals for all appliances/heating system, details of any current guarantees/maintenance contracts, location of meters, stop taps and hints about any particular features at the property (e.g. how to work alarm, dealing with condensation etc..). Other helpful information may include local doctors, dentists, refuse collection day, bus services, contact details for window cleaners, take-aways etc.

Mail

If appropriate, you should make arrangements with the Post Office for the redirection of your mail. We are unable to undertake this service on your behalf as the Post Office requires your direct instruction.

Utilities

We recommend that you take your own meter readings when you vacate and instruct the utility companies to forward your final accounts to your new address. We are unable to arrange disconnection of the telephone service or cable/satellite TV service. You must contact the relevant supply companies to do this. The tenant will be responsible for the utilities during their tenancy. We will endeavour to administer and introduce tenants to a utility management company regarding the change in responsibility for supplies and charges relating to the property.

Council Tax

Whilst your property is let the tenants will be liable for the council tax. Should your property be unoccupied between lets you will become liable to pay the council tax. If your home is furnished and not your sole or main residence and is not subject to multiple occupation, you will be liable to pay the standard council tax for each day that the property is not let under a tenancy of at least six months' duration. There is some relief for unfurnished accommodation however you should check the situation with your local authority. If your house is used for multiple occupation (as in the case of bed-sits) you may be liable to pay the collective council tax. In the case of the latter, we suggest that you contact the Local Authority to check the position as you may want to consider obtaining reimbursement from prospective tenants.

Inventory & Schedule of Condition

An inventory of household contents together with a description of the property condition is essential to avoid any confusion or misunderstanding at the termination of the tenancy. This document can only be prepared once you have moved out and we usually require the property to be vacant and fully prepared for the tenant at least five working days before the tenancy is due to start in order that the inventory can be prepared in time. When one tenant moves out and a new letting has been arranged it is normally necessary for an interval of at least five working days to ensure that the inventory can be updated and any minor works carried out if required.

Viewings

In order for the property to be marketed we require keys to enable viewings to be conducted. We recommend you supply us with three sets of keys in total. Should we require additional keys to the ones you supply we will arrange to have these cut at your expense.

TENANCY DETAILS

Tenancy Agreement & Legal Documentation

The tenancy agreement clarifies the responsibilities of both landlord and tenant and will need to be used should a dispute arise between both parties. It is therefore essential that a tenancy agreement is properly prepared to comply with current legislation. An Assured Shorthold Tenancy for an initial six month term is commonly found to be the most convenient form of tenancy and we will organise the necessary legal documentation as required.

In order to obtain possession of your property, (even upon expiry of the agreed term), you will need to give the tenant the agreed notice in writing. As part of our full management service we can serve this notice on your behalf.

Rent

Once a tenancy has commenced the rent is normally payable on the same date each month and we will usually arrange a standing order for this purpose. Under our rent collection or full management service we will receive the rent from the tenant and forward it to you after deducting any authorised expenses. You will receive a periodic statement from us detailing all payments received and any deductions made.

Rent Arrears

The greatest care is taken to select reliable and responsible tenants including the undertaking of formal credit and reference checks. As a result there are very few instances of serious disputes occurring. Occasionally, however, tenants may find themselves in genuine difficulties and unable to pay their rent. Should you be dependent on rental income to pay a mortgage we would recommend that you always maintain a reserve fund. Should a tenant be in rent arrears and/or in breach of their tenancy agreement Dacre, Son & Hartley can serve the necessary notice to terminate the tenancy if appropriate. However, this does not guarantee that the tenant will actually leave. If the tenant refuses to go you will need to take further action. Unless you have arranged legal insurance you will need to instruct a solicitor to commence possession proceedings through the courts and to recover outstanding sums. We can provide you with details of rent guarantee insurance if required.

Repairs

The landlord is responsible, by law, for most repairs and maintenance of the property. As part of our full management service we maintain a list of reputable contractors who will deal with repairs on your behalf. If you have your own choice of preferred tradesmen we may be able to instruct them provided they are easily contactable and reliable. If any equipment is covered by a service contract or guarantee you should provide us with details prior to a tenancy commencing. As landlord you are also responsible for maintenance of ‘white goods’ (kitchen appliances) and all other fixtures, fittings and equipment provided for tenants use. Tenants will be responsible for keeping the interior of the property clean and be expected to change light bulbs, replace batteries, as well as pay for any material repair of any item which has been damaged through their actions.

Should any maintenance/repair need to be carried out we shall, in the interests of good property management, arrange for repairs, provided the anticipated cost does not exceed the amount stated in the Terms of Business. Should the cost exceed this and wherever practical or feasible we will obtain an estimate and seek permission prior to arranging repairs. In cases of emergency, should we need to instruct contractors without consent we require the confidence of our clients to use our discretion in this respect. For this purpose we require a fixed sum maintenance float to be held by us during the tenancy to ensure funds are always available for emergency repairs.

Property Visits

As part of our full management service we will visit your property on a regular basis to ensure your property is being properly cared for and report to you any matters requiring attention. Whilst we do not carry out a comprehensive inspection or survey we can highlight to you any obvious matters of concern during the tenancy including maintenance issues.

Security Deposit

We will collect a security deposit from the tenant (minimum equivalent to one month’s rent) at the start of the tenancy and register the deposit with The Tenancy Deposit Scheme. The deposit will be held by Dacre, Son and Hartley against any breach of the tenant's obligations (e.g. non-payment of rent or damage to property or furnishings). Any deductions to be made from the deposit upon termination of the tenancy must be agreed by both parties. If agreement cannot be made the case will need to be submitted to an Independent Case Examiner for adjudication within 10 days.

Re-Letting

If you wish to relet your property once a tenant has given notice to vacate we would be obliged if you could notify us as soon as possible before the expiry date of the tenancy. If it is NOT your intention to grant a further tenancy or relet the property it would be appreciated if longer notice could be given.

Vacant property

If there is an extended period after you have vacated or you have bought the property before the tenant is due to move in, you should ensure that the appearance of your property does not quickly deteriorate due to accumulation of junk mail or swiftly growing lawn. During colder weather heating should be left on a low setting or the water and central heating system should be drained down to prevent frost damage. Please be aware we are unable to accept responsibility for these matters, or for the safety and security of your property between tenancies when it is unoccupied. Ensure that you check the conditions of your property insurance cover for periods when it is unoccupied.

Safety Regulations

When letting a property you are legally obliged as a landlord to ensure that your property is safe for any prospective tenant prior to their occupation.

Furniture & Furnishings (Fire) (Safety) Regulations 1988 (as amended)

There are strict safety regulations in respect of the fire resistance of soft furnishings included in any rented accommodation. This applies to all soft furnishings (upholstery and upholstered furniture including loose fittings, permanent or loose/stretch covers, beds, mattresses, headboards, pillows, settees, armchairs, futons, cushions, bean bags, nursery furniture, garden furniture etc). Carpets and curtains are not included. Any furniture of this type left at a property must comply with the safety regulations and be marked with a label to show compliance. If the property cannot meet the regulations we would not be able to act as agents.

Gas Safety (Installation & Use) Regulations 1994 (as amended)

These regulations relate to all gas appliances, fittings, pipework and installations whether served by mains gas, propane or Calor gas. Landlords are required to have all gas equipment safety checked on an annual basis by a Gas Safe registered contractor registered contractor. Records must be kept of any work carried out on appliances and a gas safety record must be obtained. As landlord’s agent we must provide the tenant with a copy of a gas safety record prior to the tenancy commencing. Without the the gas safety record we cannot allow a tenancy to commence. The landlord should also ensure instructions are available for all gas appliances at the property.

Electrical Equipment (Safety) Regulations

This regulation states that supplying unsafe electrical goods is an offence. In the event of an incident in a property involving electricity the landlord must be able to demonstrate that the electrical supply and appliances are safe. Any electrical appliances such as kettles, toasters, irons and fixed appliances such as electric cookers, immersion heaters, wall mounted heaters should be tested for safety and this can be carried out by a qualified electrician. This test is called a Portable Appliance Test (PAT). To ensure the electrical wiring and plug sockets at the property are safe an approved competent contractor should carry out a safety assessment. Should any faults be found these should be rectified before a tenancy commences.

Smoke detectors

All homes built after June 1992 must be fitted with mains operated smoke detectors which must be installed on each floor and interlinked. We would advise that a minimum of one smoke detector per floor is installed regardless of the age of the property. The smoke detector should comply with BS 5446 Part I and be tested to see that it is in working order prior to the commencement of any tenancy.

Energy Perfomance Certificates

All properties available to rent require an Energy Performance Certificate(EPC). The energy efficiency and environmental impact of your property will be rated on a scale from A-G (where A is the most efficient and G the least efficient) and this will be produced alongside a report which lists improvements on how to make a property more efficient. An EPC will need to be carried out by a Domestic Energy Assessor and Dacre Son and Hartley can provide you with further details. More information can also be found at www.energysavingtrust.org.uk or www.communities.gov.uk/epbd.

Houses in Multiple Occupancy

The government has now introduced licensing for Houses in Multiple Occupation (H.M.O.s). By doing this they are hoping to raise the standard of accommodation for people living in H.M.O’s. An H.M.O must be licensed if it is a building consisting of three or more storeys and is occupied by five or more tenants in two or more households.

A household constitutes one of the following:

• Couples married to each other or living together as husband and wife (or in an equivalent relationship in the case of persons of the same sex)
• Relatives living together to include parents, grandparents, children, grandchildren, brothers, sisters, uncles, aunts, nephews, nieces or cousins. Halfrelatives and foster children will be treated as full relatives

Therefore three friends sharing together are considered, three households. If a family rents a property that is a single household. Failure to register for a licence is a criminal offence and can result in a fine of up to £20,000

Should you require further guidance on any of the safety regulations please contact your local Dacre, Son and Hartley lettings office or your local trading standards office, environmental health office or health and safety executive. Failure to comply with the safety regulations may result in a hefty fine and/or six months imprisonment.

LANDLORDS SHOULD MAKE THEMSELVES FULLY AWARE OF THE TYPE OF AGREEMENT THEY ARE ENTERING INTO BEFORE INSTRUCTING DACRE, SON & HARTLEY AND IF THEY HAVE ANY DOUBTS THEY SHOULD TAKE INDEPENDENT LEGAL ADVICE.