Information for Landlords
Lettings home 
|
Why Knight Frank |
Information for Landlords
Lettings Management Service |
Information for Tenant |
Tenancy Management |
Residential Corporate Services
Presenting a property for rental
In order to maximise the letting potential of your property, quality of presentation and attention to detail are crucially important. The more attractive and complete the presentation, the easier it becomes to find a high calibre tenant and achieve a good rental return. Key points to consider include:
Decoration, furnishings and carpets
Décor should be fresh with a high standard of finish and good quality fittings throughout. Most tenants’ preference is for plain, neutral colours for decoration and carpets.
Kitchens
Kitchens should be fully fitted with up-to-date appliances including oven, hob, extractor hood, dishwasher, clothes washer and dryer (separate machines are preferable but where space is limited, a combined unit is acceptable), microwave and good capacity refrigerator/freezer.
Bathrooms
Power showers are a pre-requisite, and there is a general preference for white sanitary ware with high quality chrome fittings. In larger properties, an en-suite bathroom to the master bedroom is essential.
Television and internet services
Tenants expect to find up-to-date television and DVD home entertainment facilities, including digital satellite or cable services. There should also be broadband internet access wherever local availability allows.
Exterior
To create a good impression, the exterior of the property must be in good, fresh decorative condition. Garages should be cleared ready for use, and gardens presented in attractive seasonal condition.
Checking the property’s equipment and services
Appliances
All appliances and machinery must be in good working order, and serviced as appropriate.
Instruction manuals
Manufacturers’ operating and instruction manuals for all appliances and electrical equipment should be left in the property. It is important that all electrical equipment and the central heating boiler are serviced and in good working order. Details of any maintenance contracts should be supplied, and Knight Frank’s representative informed.
Utilities
Ensure that all available utilities are connected to the property including telephone line, electricity, gas and water. Where provided, check that LPG gas containers and oil tanks are full at the start of the tenancy and that the septic tank is empty.
Keys
A minimum of three complete sets of keys must be provided.
Other important considerations
Is your property held on a lease?
If you hold your property on a lease, you must ascertain whether sub-letting is permitted, whether you are required to obtain written permission to sub-let, and, if so, the conditions governing such sub-letting. We advise you to do this prior to making plans for letting, as potential tenants may require sight of any such licence or official documentation.
Do you have a mortgage?
In most cases when a property is subject to a bank loan or mortgage, written permission is required to sub-let the property. It is your responsibility as the landlord to obtain the necessary permission. Again, we ask that you do so before making your plans for letting as tenants may require sight of any such licence or permission from the lender.
Inventory and cleaning
An inventory accurately recording the state and condition of the property and its contents will be prepared by an independent inventory clerk. Please note that unless we manage the property, it is your responsibility to ensure that the property and the contents are professionally cleaned before the letting commences. The tenancy agreement requires that the tenant returns the property and all contents at the termination of the tenancy in the same condition as recorded at the start, save for fair wear and tear.
Insurance
The tenancy agreement normally requires that you have adequate insurance cover for buildings, contents and public liability and that you advise the insurance company that you are letting the property. Please note that such cover will not be the responsibility of Knight Frank or the tenant.
Post
If you are relocating elsewhere in the UK, we recommend that you arrange for the Post Office to redirect mail to your new address to avoid delays and reduce the risk of identity theft.
Service charges
If Knight Frank is managing your property and paying service charges or water rates on your behalf out of rent, the relevant authorities should be informed before you move and advised of our address.
Charges during voids
Please note that during a void (i.e. the period between tenancies, prior to a tenancy or following the end of a tenancy), the security, maintenance and all charges relating to the property are the landlord’s responsibility.
Complying with legal requirements
- The Gas Safety (Installations and Use) Regulations 1998
These regulations require the landlord of a property where there is a gas fire or other gas appliance:
a) To ensure that the appliance is maintained in a safe condition to prevent risk of injury to any person.
b) To ensure that the appliance is checked and that an appropriate certificate is issued for safety at intervals of not more than 12 months by an approved person, i.e. a CORGI (Council for Registered Gas Installers) contractor registered to carry out domestic work.
c) To give the original certificate to the tenant prior to the start of the tenancy. Unless you elect to use Knight Frank’s lettings management service, you are responsible for compliance with these regulations, for which non-compliance is a criminal offence. The tenancy must not commence without the appropriate certificate.
- The Electrical Equipment (Safety) Regulations 1994
These regulations require the landlord to ensure that the earthing and insulation of all electrical appliances in the property are safe. Cabling, fuses and plugs should also be inspected and replaced with the correct rating for that particular appliance where necessary.
- The Building Regulations 1991
These regulations require that all properties built since June 1992 must be fitted with mains-operated interlinked smoke detectors/ alarms on each floor. Properties built before that date do not have a statutory requirement, but we recommend that you should consider the installation of smoke alarms in your property.
- The Furniture and Furnishings (Fire) (Safety) (Amendment) Regulations 1993.
These regulations make it an offence to supply certain furniture in the course of a business unless it complies with what is called the “cigarette test”, the “match test” and the “ignitability test”. The regulations, which apply to all rented property, cover in general all upholstery and upholstered furniture, loose fittings, permanent or loose covers. However, they do not apply to any furniture manufactured before 1st January 1950. The recommended way to check whether furniture complies is to look for labels attached to the furniture. If there are no labels, you must establish when and where the furniture was bought and contact the retailer or manufacturer to check whether the item complies. If you are unable to establish where the furniture came from or its compliance, it must be replaced. It is illegal to let a property with furniture which does not comply with these regulations.
- Stamp Duty Land Tax
With effect from 1st December 2003, under the Finance Act 2003, Stamp Duty Land Tax is only payable by the tenant.
- Taxation for overseas landlords
Under the Finance Act 1995, the Inland Revenue introduced a system of self-assessment, and all overseas landlords may apply to the Inland Revenue for a Certificate of Self-Assessment in order for rents to be paid over gross. We strongly recommend that all overseas landlords apply for self-assessment. For those who have not applied, Knight Frank is required by law to deduct the tax for all overseas landlords at the basic rate from the net rental income and pay this on a quarterly basis to the Inland Revenue and charge a fee. As we are not qualified tax accountants, we recommend that you take professional advice regarding these regulations.
- The Housing Act 2004 – Houses in Multiple Occupation
The law in relation to Houses in Multiple Occupancy (HMOs) under the Housing Act 2004 has recently changed. In summary, a property that is let to at least three tenants (ie. three sharers) who share a kitchen or a bathroom is an HMO. If there are less than five sharers, the property is not subject to mandatory licensing, but the Landlord must check with the relevant Local Authority as they may require the property to be licensed. Where there are five sharers or more the property will require mandatory licensing.
In addition, where a building is fully converted into self-contained flats and if the conversion work does not comply with the building standards of the 1991 Building Regulations and less than two thirds of the flats are owner-occupied, this type of building is an HMO and may need to be licensed. Again, the Landlord must check with the relevant Local Authority.
Landlords must not ignore this as failure to obtain a licence from the relevant Local Authority will attract a fine of up to £20,000. A tenancy cannot be allowed to commence until a licence has been obtained.
- Housing Health & Safety Rating System
Landlords should be aware that where an HMO is licensed, the property will be subject to inspection under the Housing Health & Safety Rating System within five years of the application for a licence.
Landlords should also be aware that any property that is either let, or available to rent, can be subject to inspection under the Housing Health & Safety Rating System. In brief, the inspector visits the property to assess potential hazards (ie. excess cold, steep staircases) and, if applicable, will issue a Notice upon which the Landlord must act as appropriate.
- The Regulatory Reform (Fire Safety) Order 2005
The above Order came into force on 1st October 2006, giving obligations with regard to HMOs. Where a property is an HMO, it must at least have mains linked smoke detectors in the common parts (ie. hallways) and fire blankets and fire extinguishers in the kitchen. Depending on the age and character of the property, further alterations may be required.
Although currently the above order applies to HMOs only, we would recommend that all our clients’ properties are fitted with mains linked smoke detectors with fire blankets and fire extinguishers in the kitchen.
- Disability Discrimination Act 1995
Amendments to the above Act came into effect in December 2006 giving a disabled person the right to ask a landlord for reasonable adjustments to a property to enable him to enjoy the property and its features as an able-bodied person could. However, it should be noted that such adjustments are temporary and can be reinstated at the end of the tenancy, ie. changes to wall colour, provision of a portable wheelchair ramp, changes to door handles, doorbells and taps. Such reasonable adjustments are at the landlord’s expense.
The Assured Shorthold Tenancy (AST)
Knight Frank will advise you on the scope and benefits of the Assured Shorthold Tenancy created by the Housing Act 1988 (as amended by the Housing Act 1996). Here are some of the points covered within the AST.
The property let must be a dwelling house let as a separate dwelling; and
- the tenant must be an individual and must occupy the property as his/her only or principal home; and
- the landlord must give a minimum of two months’ notice to gain possession; and
- the tenancy can be for any specified period either for a fixed term or periodic (open-ended) from the outset. However, a court cannot make a possession order to take effect earlier than six months from the commencement of the tenancy, even if the term granted was for a shorter period; and
- the rent must not exceed £25,000 per annum
Under Section 21 of the Housing Act 1988 (provided that a true AST has been created), the landlord is guaranteed an order for possession if:
- the term of the tenancy has expired (except in the case of a periodic tenancy); and
- the landlord has given not less than two months’ notice stating that he/she requires possession.
Company tenancy
This will be governed by contract law and not the Housing Act 1988.
Points to note: the tenancy is to be granted to a bona fide limited company or embassy only, e.g. not to a partnership. It is more difficult and costly to pursue a foreign company not registered in the UK.
Benefits: a bona fide company has no security of tenure, the financial status can be more secure than with an individual, a longer term of tenancy is usually requested, and rental payments are often paid quarterly in advance.
Contractual tenancy
This is a tenancy not regulated by statute and therefore falling outside the provisions of the Housing Act 1988. The most common occurrence is where the rent exceeds £25,000 per annum. The parties are therefore bound solely by the provisions of the tenancy agreement which should have all the necessary provisions incorporated.
Residential Corporate Services
Our business is to find homes for corporate tenants relocating into London. With a wealth of experience we truly understand the wide range of people and requirements that a London relocation can involve. Click here for more