Landlords Guide

We provide a fully comprehensive range of services designed for Landlords in the process of renting out their properties.

Which level of service is right for you?

At Robert Carswell Property Management we offer two types of letting service- Let Only and Full Management. Your decision depends on whether you wish to remain in charge of rent collection, inspections, or leave the management of the property entirely to us.

Let Only Service

On receipt of formal instruction to let your property we will take care of;

• Marketing- Circulating details of your property to potential tenants through our office and website. Informing a large selection of companies and relocation agents. Advertising in the local press. Placing a ‘To Let’ board at the property.
• Viewings- Accompany prospective tenants and advising you immediately of tenancy applications.
• Vetting Candidates- Interviewing and obtaining credit references and guarantors when necessary
• Tenancy Agreement- Preparing the documentation required by current legislation. Collecting the first month’s rent and deposit.

Full Management Service

This is the hassle free option if you wish us to take complete control of renting your property from beginning to end. In addition to all the Let Only services, we will also provide additional services, such as undertaking minor repairs, cleaning and collecting rent. If you require more information on the full range of services we provide please contact us.

Helpful Hints for Owners and Landlords in Brief

Upon Deciding To Rent Your Property

1. Apply for mortgage lender’s consent.

2. Notify your insurance companies.

3. Obtain gas and electrical appliances safety certificates. Oil and Solid fuel central heating systems must also be checked and serviced annually, records of these must be kept.

4. Decide what furniture and/or fittings you intend to leave in the property. It is not advisable to leave bedding, televisions, videos and personal items.

5. Ensure furnishings to be left in the property comply with fire regulations.

6. Carry out any necessary repairs and remove anything potentially dangerous.

7. Make sure the property is in a clean and tidy condition, particularly the kitchen, bathroom, carpets and curtains- (as YOU would hope to find it if you were moving in yourself). A Tenant can tell if the property is well cared for and is more likely to look after it during the tenancy if it is clean at the start.

8. Oversees Landlords apply for tax exemption certificates- please ask the office for more details.

Rent Protection

Tenants can fall into arrears for many reasons, even those with favourable references. Can you afford to lose monthly income? In an uncertain world, it’s good business practice to obtain effective protection.

Tenant’s circumstances change for any number of reasons, so it is prudent to minimise the risk to your income. Rentsure Silver offers peace of mind that rental income is protected.

• Rent and legal expenses cover to obtain possession of the property
• Payment of monthly rent for up to six months on breach of tenancy agreement subject to a maximum of ?6,000.
• 100% pf the rent paid until full and vacant possession is obtained subject to a maximum of one 6th of the insured limit.
• 75% of the rent paid once full and vacant possession is obtained until the property has been re-let, subject to a maximum period of two months.

The main conditions for Rentsure Silver are outlined below-

• All tenants must be satisfactorily referenced. (An acceptable Letsure comprehensive Tenant Assessment will meet the referencing requirements of the Rentsure Silver Insurance)
• A Security Deposit equal to a minimum of one month’s rent for the property must be collected before the tenancy starts.
• The Tenancy Agreement must be in writing and comply with the relevant legislation.
• An excess of one month’s rent will be deducted from the first month’s rent payment following a claim.
• Letsure must be notified within 60 days from when problems first arise in connection with non-payment of rent
• No claims can be made for existing problems or for problems known as likely to occur with the tenants prior to commencing cover,
• Claims can only be made for an insured event that occurs during the period of insurance but rent will continue to be paid after
• Once vacant possession of the property has been obtained, the property must be made available for re-letting and you must accept any reasonable offer of tenancy in excess of 85% of the preceding rent.
  

• Gas and Electrical Safety

The General Products (Safety) Regulations 1994 require that all goods must satisfy general safety provisions. The law requires that all electrical appliances are safe and strongly recommends that they are tested.

In 1995 there were 27 deaths from electrocution within the home and 39 in the workplace; 23,756 people suffered electric shocks and an alarming 7,500 fires were caused by faulty electrical appliances and leads.

The Electrical Equipment (Safety) Regulations 1994 and The Plugs & Sockets etc. (Safety) Regulations 1994 state that supplying unsafe electrical goods is an offence. When an unsafe appliance is found in rented accommodation, Trading Standards check that the landlord or agent has taken all reasonable precautions to avoid supplying an unsafe item. In the event of an incident in a property involving electricity the landlord must be able to demonstrate that his supply and appliances are safe, he can only do this if it is tested professionally. Duty of care demands that this is done on a regular basis, particularly at the point at which the property first becomes available to let.

The Gas Safety (Installation and Use) Regulations 1994state that all let and managed property MUST be annually tested for safety. Failure to comply with these regulations can result in a substantial fine or even, in the worst cases, imprisonment. Only GAS SAFE registered businesses using ACOP's qualified engineers can carry out work on gas appliances and piping. All landlords have a DUTY OF CARE to ensure their tenant's safety. To this end battery operated smoke alarms are advisable. Once a landlord has supplied an alarm the tenant becomes responsible for the battery. Robert Carswell Property Management uses only full qualified contractors to carry out both gas and electrical safety tests. These firms not only carry the right qualifications but have Quality Assured standards and Professional Indemnity Insurance. Our Contractors' Safety Inspectors are all qualified to the latest industry-recognised gas and electrical standards. As legislation increases and qualifications evolve, these engineers keep pace because training is on-going. Safety Inspectors regularly attend manufacturer courses to enhance their knowledge of - for example - specific boilers, old and new.

• Information for Overseas Landlords

Section 42a Income and Corporation Tax Act 1988 and Taxation of Income from Land (Non-residents) Regulations 1995, SI 1995 No 2902.

For Landlords who live abroad the Robert Carswell Full Management Service is available, the Let Only service cannot be used. Overseas landlords are regarded as non-UK residents for tax purposes, and need to apply to the Inland Revenue for Non-Resident Landlord status. A landlord that has already been approved to receive rents without deduction of tax from the Inland Revenue must contact the Inland Revenue and request that an NRL8 (approval notice) be issued to us. A landlord who does not hold approval will need to apply to the Inland Revenue to be approved for the non-resident landlord scheme. If the application is successful the Inland Revenue will issue an NRL8 to the Managing Agent and will guide landlords through the whole process if required. The Inland Revenue issues the following notes as a guide to this scheme.

• The Non-resident Landlords Scheme is a scheme for taxing the UK rental income of non-resident landlords. The scheme requires UK letting agents to deduct Basic Rate tax from any rent they collect for non-resident landlords. When working out the amount to tax, the letting agent can take off deductible expenses. Letting agents don't have to deduct tax if the Inland Revenue tells them not to. The Inland Revenue will tell an agent not to deduct tax if non-resident landlords have successfully applied for approval to receive rents with no tax deducted. But even though the rent may be paid with no tax deducted, it remains liable to UK tax. So non-resident landlords must include it in any tax return the Inland Revenue sends them.

Most applications are dealt with within two weeks (the Inland Revenue Centre for Non- Residents aims to approve 95% of all applications within this time).

• Fire and Furnishings Regulations

Since 1 January 1997, all furniture provided in furnished rented accommodation - houses, flats and bedsits - must meet the fire resistance requirements of the Furniture and Furnishings (Fire) (Safety) Regulations, 1988.

What products do the Regulations cover?
Any of the following: that contain upholstery;

• beds, mattresses and headboards
• sofa beds, futons and other convertibles
• nursery furniture
• scatter cushions, seat pads and pillows
• garden furniture intended for use in a dwelling
• loose and stretch covers for furniture

The regulations do not apply to:

• sleeping bags or loose covers for mattresses
• bed clothes (including duvets) and pillow cases
• carpets and curtains All furniture and loose and stretch covers must carry a permanent label attached showing the item complies with the Regulations.

• Important Information on Houses with Multiple Occupancy

Notes:

From 6 April 2006 mandatory HMO licensing came into force across England. The Government hopes that this new legislation will raise the standard of accommodation for people living in HMOs.

Which HMOs need a licence?
Under the national mandatory licensing scheme an HMO 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. Local Housing authorities have discretionary powers to widen the remit of licensing to also include other smaller HMOs if they think that enough of them in an area are badly managed. IF YOU ARE UNSURE WHETHER AN HMO NEEDS A LICENCE CHECK WITH YOUR LOCAL HOUSING AUTHORITY

What is a Household?

• 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, including parents, grandparents, children (and step children), grandchildren, brothers, sisters, uncles, aunts, nephews, nieces or cousins.
• Half-relatives will be treated as full relatives. A foster child living with his foster parent is treated as living in the same household as his foster parent. Therefore three friends sharing together are considered, three households. If a family rents a property that is a single household.

When do I have to apply for a licence?
Mandatory licensing came into force on 6 April 2006. HMO landlords are encouraged to apply immediately for a licence to avoid the penalties, which were introduced on 6 July 2006; Failure to register for a licence is a criminal offence and can result in a fine of up to ?20,000. For more information on HMOs contact your local housing authority and visit www.propertylicence.gov.uk

• Prospective Tenant information on the my/deposits.co.uk scheme

You may have read in the press that the Housing Act 2004 made provision for both the protection of tenancy deposits and the resolution of disputes over their return. The legislation came into effect on 6th April 2007. Now all deposits taken for Assured Shorthold Tenancies will have to be covered by a tenancy deposit protection scheme.

Robert Carswell have successfully applied to become a member of my/deposits.co.uk managed by the Dispute Service (TDS) Tenancy Deposit Scheme. Deposits held by Robert Carswell and covered by TDS and are protected during the tenancy so that they are available to be returned to the tenants if they have met the terms of the tenancy agreement. Where there is no dispute at the end of the tenancy the deposit will be returned.