What do I need to supply?

Sometimes in studios or 1-bed flats there is a demand to supply 4-6 plates, bowls, glasses and mugs, a limited amount of utensils, plus 2-3 pans. However, most tenants would rather use their own cutlery and crockery for hygiene reasons. Whilst a wider range of fitments can make a home more attractive to let, it's worth remembering that repairing and replacing all supplied items will be obligatory during the tenancy. Also, the more bland a property is the more easily letable it will be – applicants need to visualise themselves living in your property but if ‘you’ are still very much there, they are unlikely to be able to do so. Please do not leave valuable or much loved heirlooms or special ornaments. There is no need to supply televisions, stereos, pictures and linen (except mattress protectors, which are advisable). Above all, it is important to be flexible. A prospective tenant with their own bed may be put off if they have to find a place to store yours. By the same token, if a tenant requests something that is not provided, it is worth considering providing it.

Who will prepare the inventory?

We instruct independent professional inventory clerks. This ensures that the inventory is of a high standard and unbiased in every way. This protects your interests and gives the tenant confidence that any claim on their deposit for dilapidations is factually based.

May I stipulate "No Pets", "No Smoking" and other things?

The Office of Fair Trading now says these sort of stipulations may be regarded as unfair contract terms if they form part of a standard tenancy agreement. However, any clause that is individually negotiated and initialled by the tenant is likely to be upheld. Some consideration should be given to the impact of limiting the range of possible tenants.

May I increase the rent?

Our standard form of contract makes provision to increase the rent every 12 months, in line with the percentage increase in the Retail Prices Index. However, once a fixed term tenancy expires, it is possible to completely renegotiate the rent if desired. Tenants will be well aware that if a higher rent is not agreed, they could be at risk of being given notice to leave the property.

Having said this, we often do not recommend increasing the rent if the market rent is at a similar level to the existing rent and if the tenants are trouble free. We believe continued income is the most important consideration and pushing rents as high as possible encourages tenants to stay only for short periods of time.

Can I ensure that my telephone number is kept at the property?

Our standard form of contract states that tenants must not change the landline number without permission. Please let us know if this is of particular importance to you and we will reiterate this to the tenant.

What happens to my property when it is unoccupied?

If the property is left unoccupied between lets, we will most likely be making regular visits with prospective tenants and therefore will be able to keep an eye on things and collect any correspondence. However, if your insurance policy requires specific items to be checked on a regular weekly basis, we may make a charge for this, depending upon how onerous the insurer’s questionnaire might be.

Should I employ a gardener?

Generally speaking we expect tenants to keep grass cut and flowerbeds weed-free but if the garden has a number of shrubs, trees or bushes, a periodic visit from a gardener may be advisable and generally speaking, landlords pay for this. We can stipulate in the tenancy agreement that tenants should employ a gardener – please make us aware if this is your expectation.

The state of the garden at the check-in is usually noted in very broad terms, although our inventory clerk would also take photographs. There is often varying opinion regarding how much pruning should be done but little usually happens that cannot be changed to your preference at the end.

Do I pay tax on my rental income?

Residents in the UK are liable for tax at the standard rate under the Taxes Management Act 1970 Section 79, although there are a number of worthwhile allowances such as mortgage interest, letting / managing agent’s fees and maintenance costs. For furnished properties there is also a 10% allowance for depreciation. Specific advice regarding the amount of tax payable should be sought from an accountant.

What if I live abroad?

If you live abroad we would ask you to complete an ‘NRL1’ form supplied by the Inland Revenue. This is an application for us to be able to forward your rental income without deducting tax. The approval is specific to each agent, so even if you have previously rented property and completed one of these forms for another agent, we would still need you to complete one for us. If for any reason an exemption is not granted / if the form is not completed, we are obliged to deduct 20% of the rent collected (less expenses) and pay this to the Inland Revenue each quarter. However, obtaining approval is fairly straightforward, so this is what we recommend.

At the end of the financial year, we report the total gross rental income we have collected on your behalf to the Inland Revenue. You will need to make a return to the Inland Revenue, reporting your income and expenses, in the normal way and pay any tax due directly to them.

Are tenants responsible for damage they cause?

Yes! At the start of the tenancy we collect and hold a deposit usually equivalent to six weeks’ rent. The tenant is invited to check and agree the inventory given to them, which is prepared just before they move in and again at the end of the tenancy. Any discrepancies are noted and agreed where possible.

It is important to distinguish between ‘damage’ and ‘fair wear and tear’ however, the definition of fair wear and tear is generally very narrowly interpreted.

We hold deposits as Stakeholder and resolving deposit disputes is the only occasion where we would not act as your agent – we act as an independent adjudicator. Agreement must be reached between landlord and tenant before any monies are released. Generally speaking we settle deposit disputes with just a little bit of wrangling but if agreement cannot be reached, application can be made to The Dispute Service Limited, of which we are a member (in respect of assured shorthold tenancies); or for tenancies outside the Housing Act, the matter would go to arbitration.

What happens if there are rent arrears?

Our rent collection rate is very close to 100%. While some tenants do occasionally fall behind with their payments, we rigorously pursue late rents. We serve appropriate notices to warn tenants that they are liable to have their tenancy ended but we will also apply to the Small Claims Court where necessary for payment of the debt. We often find it preferable to take action to recover arrears prior to taking action for possession, so that there is more chance of actually recovering the debt as well as obtaining a judgment. The threat of court action often persuades a late-paying tenant to take swift corrective action.

What if I want to sell my property?

It's best to sell a property when it is empty (although the process could start before the end of a tenancy). We are able to arrange all aspects of the sale for you under a separate contract. We can obtain independent valuations, arrange for the sale or storage of furniture, estate agent viewings, conveyancing, repairs and generally act on your behalf.

Can I get my property back? Will the tenants leave?

Both of these questions have satisfactory answers in the terms of the Landlord and Tenant Act 1997 and the Housing Act 1988. Your agreement with the tenant will normally be a form of Assured Tenancy. This "assures" the tenant of the right to occupy for a specified time and "assures" the landlord that the tenant is obliged to leave at the end of the term if given notice to do so. In order to get possession, you must give at least two months' notice which is timed to expire on a rent day or the day before a rent day.

Non-assured shorthold tenancies simply expire at the end of the fixed term; therefore re-possession is even more straight forward in these cases.

Is there often tension with the tenant?

In our experience, no! Provided tenants feel they are getting a fair deal and the property is properly managed, there are usually no problems. Over the years in general we have had excellent relations with our tenants. Our service is designed to stand between you and the day to day problems that may arise.

Whom should I inform about my intention to let?

If your property is mortgaged, your lender should be informed. If your property is leasehold, you may need to inform your freeholder, or even obtain written consent prior to letting. You should also inform your contents and buildings insurers. Certain mortgages and insurance policies do not allow letting, so you may need to change products. You may be asked for an administration fee by your mortgage lender and/or freeholder in order to be granted consent. The procedure should be straightforward though.

Is it better to let furnished or unfurnished?

Whether you let furnished or unfurnished, it has no impact on the rental achieved and so arguably it is better to leave a property unfurnished and save the expense of buying furniture or replacing it over time. There are also savings to be made during void periods since the owners of unfurnished properties would at such time be exempt from paying council tax, whereas most councils now only offer a 10% discount on the usual rate of council tax if a property is vacant but furnished.

On the other hand, one must also consider what the market demands. Generally speaking smaller properties are furnished and houses are unfurnished, simply because people tend to stay for shorter periods in the smaller properties and settle for longer in houses.

Also, if you are renting your own home and would have to pay to store your furniture, you might prefer to leave it in the property and use some of the money you would have spent on storage to buy or replace furniture as necessary.

The most important thing to consider is what tenants will want. Any furniture provided should be in good condition and should be coordinated. The property should not be a dumping ground for items of furniture that have no other place to go!

What should be left in the Property?

Unfurnished properties should be offered with all kitchen appliances present, window and floor coverings.

Property let furnished should have all of the basic essentials for living but should still be quite bare. Furniture should include beds, wardrobes, side tables, a dining table (if appropriate), a coffee table and (a) sofa(s). There will also be a need to supply a vacuum cleaner, kettle, iron, toaster etc. Washing machines and full size freezers are essential, dishwashers are desirable – tenant expectations will depend on the type of property.