Landlords

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Landlords


Do you want to minimise the time you spend thinking about and dealing with your property?

We guarantee that you will spend no more than an hour a month if we manage your property unless you chose additional contact.

Interviewed and Reference?

We guarantee to supply you all the documents that evidence this being done on request.

How can you be confident that we will manage your property efficiently and effectively?

Listen to what our landlord clients say…

TENANCY
The Housing Act 1988 (amended 1996) has given rise to two types of Tenancy: Assured and Assured Short hold Tenancy as well as the existing Company Tenancy and Contractual Tenancy.

ASSURED TENANCY
Certain criteria have to be satisfied for a tenancy to qualify for assured status. Assured Tenancy gives the Tenant security of tenure but at a market rent negotiated between the parties. The Landlord may request back possession of the property let on an Assured Tenancy but must obtain a COURT ORDER. This has its advantages but is not as flexible.

ASSURED SHORTHOLD TENANCY
This Tenancy is attractive to Landlords as it offers market rents without security of tenure beyond the contractual term and the majority of Tenancies are based on this format. However, certain criteria must first be met:

  • The rent cannot exceed £25,000 per annum
  • The Landlord must not occupy the same property
  • The Tenant must be an individual
  • The property must be the Tenant’s main residence/home

If the property is let under an Assured Shorthold Tenancy, the Landlord can issue a Section 21 Notice to guarantee possession provided the term of the Shorthold is expired and not less than two months notice has been given by the Landlord stating he requires possession.

If court action is needed, this can be obtained on a number of different grounds against the Tenant.

However, it should be noted that is a criminal offence under the Protection from Evictions Act 1977, for a Landlord to threaten or forcibly evict a Tenant from their property.

COMPANY TENANCY
This is governed by contract law and is not regulated by the Housing Acts of 1988 or 1996. It is used when a Private or Public Limited Company (excluding partnership or sole trader) want to enter into a Tenancy.

There is no security of tenure and rental payments are often made on a quarterly basis by prior agreement.

D) CONTRACTUAL TENANCY

Contractual Tenancy also falls outside the provisions of the Housing Acts of 1988 and 1996 and is not regulated by statute. It is most commonly used where the rent exceeds £25,000 per annum and both parties have the freedom to contract as they choose, but must then rely solely on the provisions of that Agreement.

FURNISHED OR UNFURNISHED
Most professional Tenants prefer the property to be unfurnished and it has been found that a Tenant is likely to respect the property more if they have their own possessions. Moreover the difference between rent for furnished or unfurnished is negligible and the Landlord remains responsible for the repair of replacement of any furnishings which become broken or worn (unless this was caused by a deliberate act of the Tenant – see Damage Deposits).

MARKETING/FINDING A TENANT
You will need to decide whether you require your agent to simply market your property and find a Tenant or whether you would prefer to engage the services of their Managing Agents.

Whether you chose to opt for a Managing Agent or not, as your Letting Agent will firstly provide colour property details and a rental valuation which will be based on the popularity of the area, proximity to transport, rental price of similar property handled and decorative condition to name but a few.

It is important to price your rent fairly but realistically in order to attract the most suitable Tenant.

Your rental property will be regularly advertised locally and publications dedicated to the letting industry as well as displayed in our offices and featured on our website and other leading property portals. These portals include sites such as Zoopla and Right Move. We also contact any listed prospective Tenants, local companies and relocation agents in our efforts to find suitable tenants.

FULL CREDIT CHECKING
Thorough credit checks are carried out on all prospective Tenants as we can reserve the right to decline an application where necessary in the interests of protecting the Landlord’s investment.

REFERENCES
We believe that taking comprehensive references is an essential part of our service. We only allow an outside independent referencing specialist to undertake this process. The tenant will be responsible for covering this cost. Once successfully completed, the referencing company will assist you in obtaining a linked insurance policy to safeguard your rental income and provide legal protection insurance products such as rent guarantee.

DRAFTING OF TENANCY AGREEMENT/LEASES
We take a detailed brief from Landlords before tenancy agreements can be prepared and prepare draught agreements for the landlord’s approval in advance of the proposed tenancy. Only once the agreement has been approved by the landlord will it be sent to the tenants for their approval.

DAMAGE DEPOSITS
This is usually equivalent to six weeks rental and is taken from the Tenant to be held in a Client Account until the end of the Tenancy. Select Agencies put all client money into the Deposit Protection Service website (DPS.) Upon vacation of your property, there will be a re-inspection and any refunds will be made within a maximum of 28 days, provided that there are no disputes and all utility accounts have been settled.

The costs of everyday repairs and maintenance are the responsibility of the Landlord.

Under the LANDLORD AND TENANT ACT 1985, Landlords are responsible for repair of the structure and exterior of the property, together with installations for the supply of gas, electricity, water and sanitation.

If the property is not in a good state of repair at the commencement of the Tenancy, the Tenant has the right to insist that repairs are carried out and, in the event that the damage is serious, the Tenant will be entitled to consider the letting as terminated as the Landlord will be in breach of his obligations.

COLLECTION OF RENT
This is usually done on a calendar monthly basis and is forwarded to the Landlord via any previously approved method after any agreed deductions have been made for contractors etc.

LEGAL DUTY OF CARE
Under common law, the Landlord must ensure that properties to let are safe and failure to comply with Safety Legislation is considered a criminal offence resulting in legal action and prosecution.

1. Gas – (The Gas Safety (Installation & Use) Regulations 1994 (amended 1998) – the Landlord must maintain gas installations and all gas appliances through annual inspections and safety checks carried out by a Gas Safe registered engineer and a copy of the Current Inspection Certificate must be left at the property.

2. Electricity  – (The Electrical Equipment (Safety) Regulations 1994 & Electricity at Works Regulations 1989-  the Landlord must ensure that all mains voltage household electrical appliances and equipment is tested and safe to use. Any non-repairable items must be replaced and removed.

An NICEIC or similarly qualified electrical engineer must carry out these tests on an annual basis and we would also recommend this is done upon change of Tenancy.

All operating instructions must be left in the property for the Tenant’s benefit.

3. Furniture and Furnishings – The Furniture and Furnishings (Fire) (Safety)Regulations 1988 (amended 1989 & 1993)  – Soft furnishings (such as mattresses, settees, bed bases, cushions and padded headboards) must meet fire resistance standards and bear a permanent  label confirming this. If compliance cannot be proved, the item must be removed and replaced.

4. Smoke Detectors – whilst only properties built after 1992 legally require the fitting of smoke detectors (Building Regulation 1991), we would strongly recommend that smoke detectors are fitted to each floor of the property being let.

NB: The penalty for failure to comply with statutory safety legislation is currently a maximum of £5,000 and/or 6 months imprisonment for each offence. This can be harsher in the case of injury or fatality.

The above is only a guide to the legal safety requirements and should you have any further enquiries, we would recommend that you contact a qualified solicitor who will be able to verify these in full.

OVERSEAS LANDLORDS
You are considered an overseas Landlord if you live abroad or go to work abroad for lengthy periods of time.

It is important to firstly note that Inland Revenue regulations apply even if you are a non-UK resident. Moreover, non-resident Landlords must apply to the Inland Revenue Financial Intermediaries Claims Office (FICO) for authorisation (by way of an exemption certificate) to receive payment of property rental “gross”, that is without deduction of Income Tax by the letting agent or Tenant as required by law.

NB: The above is merely a guideline and for fully qualified advice, you should contact an appropriate Accountant or Tax Expert.

1.  Property valuation by our dedicated and experienced in the local market negotiator

2.. Evaluation of your expectation and requirement, which will be mapped to a realistic marketing strategy to suit

3.  Overview of the local market trend and discussion on the legal requirements of letting

4.  Extensive marketing through the branch, online property portal with multiple photos and emphatic description of the property’s USP

5.  Instant match to fully vetted and qualifying applicants registered on our database

6.  Viewings arranged and accompanied by our experienced negotiator

7. Strategic win-win negotiation

8.  Extensive referencing procedure, including financial check, profile check and previous tenancy check .  Up to 12 months free rent guarantee.

9.  Producing  Tenancy Agreements which are up to date with current legislation.  Prescribed Deposit information to tenants

10.  Arranging Inventory  and schedule of condition for the property by our independent and qualified Clerk

11.  Receiving deposit and advising on its registration as per the legal requirement.

Administrating the return of the deposit at the end of the tenancy

12.  Use of advanced Property Management software for rent collection and account maintenance

13.  Informing the utility companies

13. Monthly statement

14. Year end statement for Tax registration  purposes

15.  Renewal reminder 2-3 months prior to end of tenancy date

16.  Win Win renegotiation of rent  and terms.  Administration of the renewal of the deposit, rent guarantee policy and drawing new agreements

17.  Reminder on expiring legal documents, such as the gas safety certificate

18.  Advise / Assistance on property maintenance to both managed and non managed properties

19. Select Agencies, informs the utility companies and Council of any change of occupancy

20.  Rent collection by standing order, cash  at the branch and cheque

21.  Rent transfer by Faster Payment into your account

22.  Quarterly booked inspection, with a schedule of condition report accompanied by photographs

23.  Check out of  tenants by our independent clerk at the end of the tenancy

24.  Negotiation of deposit and administrating deductions and refunds

25.  Administrating any dispute with TDS and the tenants

26.  Automatic re marketing of property at least 2 months prior to the end of the current tenancy

27.  Administrating claims to the Insurance on behalf of our client for none payment of rent

28.  6 Months Rent Guarantee

29. 12 Months Rent Guarantee

 

Where Select Agencies undertake any works or commission any contractor to provide services of any sort on request of a landlord or within a landlord’s property Select Agencies will charge 12 per cent of the amount charged by the contractor retained to provide such service. This amount includes VAT. Should the size/volume of the works undertaken require additional attention/supervision by Select Agencies the landlord will be advised and such works will be charged at £60 including VAT per hour.

Select Agencies’ standard letting fee is:

 

(The fee charged to landlords to find tenants or to renew a tenancy agreement.  This includes the cost of registering and holding deposits and for being available to deal with tenancy issues)

First Year Of Tenancy –  8%  + VAT of the first years rent.

Second Year Of Tenancy – 7.5% + VAT of the annual rent.

Third And Subsequent Year(s) – 5% + VAT of the annual rent.

 

Management fees are charged as below:
(This fee is charged to manage properties, it includes collection of rent, provision of warranties, 24/7 availability to deal with property issues and regular updates on property conditions)

5% of the monthly rent paid

Inventories fees and charges:

Inventories are charged on the size of the property – approximate fees are:

1 Bedroom Property              £130.00 Inc VAT

2 Bedroom Property              £150.00 Inc VAT

3 Bedroom Property              £180.00 Inc VAT

4 + Bedroom Properties       £220.00 Inc VAT

 

Select Agencies reserve the right to charge £60 including VAT per half hour for the services provided as listed below:

Attendance of court on a landlord’s business.

Preparation and submission of documents to 3rd parties providing assistance.

Attendance at properties on or for bailiff attendance.

For any further information or to discuss a free no-obligation, letting market appraisal for your property please contact a member of our team by calling  020 8447 8477