Frequently asked questions
Why do I need an Agent to let my property?
Why do I need my property managed in my absence?
Should I let my property furnished or part furnished?
What happens it my tenant does not pay the rent?
What happens if my tenant does not vacate my property?
What will happen if I do not tell my Lender that I am letting my property?
Am I responsible for maintaining my property?
Who insures the property and contents?
What if the tenant damages my property
I have been told that there are various safety regulations. What are they?
Are services generally included in the rent?
Why do I need an Agent to let my property?
There are many private landlords successfully letting their own property. As with many areas of life, one could
carry out the job oneself but it is often better to use the professionals. Having a property to let and finding
someone who wishes to rent it may appear simple and possibly is. Unfortunately, the matter does not end there. The
professional Agent will have experience in marketing property, selecting the right tenant, taking up essential
references, advising on the standard of the property, advising on all safety aspects, drawing up tenancy agreements
under the Housing Act 1988 or otherwise, creating of inventories and schedules of condition, changing of services to
tenant's names, ensuring receipt of cleared funds and stamping of legal documents. Once a tenant has possession of a
property, it is too late to decide that you have accepted the wrong person. 'Professional tenants' are practiced in
persuading landlords to accept them, sometimes erroneously.
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Why do I need my property managed in my absence?
Landlords often consider that their parents or a friendly neighbour will be able to manage their property as they know contractors for maintenance. This,
however, is by no means the only concern. Letting the property is one area and management is another. This involves demanding and collecting rent on a regular
basis and ensuring that rent continues to be paid for the duration of the tenancy; visiting the property on a regular basis to ensure that the tenants are taking
care and checking for any general maintenance which might be required; arranging maintenance matters, surveillance of contractors and settlement of accounts; renewals
of tenancies; advising on tax matters and allowances. Assuming that the tenancy runs smoothly the managing agent will be well able to deal with the above matters.
The more professional Agent will know how to deal with problem tenants who perhaps wish to make deductions from the rent, do not pay the rent at all or who will not
leave at the appropriate time.
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Should I let my property furnished or part furnished?
Previously, the trend was always to let property fully furnished. This trend is rapidly changing, except perhaps for Central London. The majority of property
coming onto the rental market is now part furnished i.e. offered with carpets, curtains and white goods in the kitchen. The rentals achieved for part furnished
property are also equal to those for fully furnished rentals. The demand is there. Tenants, especially those wishing to make a home of the property, are generally
happier to create their own space by using their own furniture. Tenants will not be in such a hurry to move on if they are able to sleep in their own comfortable
bed and sit on their own sofa. The other main reason for the swing to part furnished property is the Furniture and Furnishings Regulations (detailed later).
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What happens it my tenant does not pay the rent?
Clients of Gerard Nicholas have the
opportunity to purchase Rent Guarantee Insurance both at the start of a tenancy and also after it has begun. This means that should there ever be a breach of the
Tenancy Agreement, legal action can be taken without delay. If the rent is not paid the policy will cover and pay out rent to the client for up to twelve months.
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What happens if my tenant does not vacate my property?
If Rent Guarantee Insurance has been taken out, possession proceedings will be instigated via the Legal Protection insurance at no cost to the landlord.
Invariably this means that proceedings can be started sooner than would otherwise be the case.
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What will happen if I do not tell my Lender that I am letting my property?
Under the terms of your loan, you have restrictions with regard to letting your property. Letting is most probably prohibited without permission. It is rare
now for lenders to refuse permission. Generally they will give permission for a limited period of say three years initially. If you let without permission, the
lender may have the right to repossess the property, evict the tenants thereby leaving yourself open to an action by the tenant for lack of peaceable enjoyment
of the property. If the Lender has given permission, they will not be in a position to evict the tenant if you do not pay your loan before the permitted time has
expired.
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Am I responsible for maintaining my property?
Generally yes. The structure, services and heating are the landlord's responsibility under statute. The remainder depends on the Tenancy Agreement but normally
landlords maintain the property and contents i.e. white goods, unless it can be shown that the tenant has caused damage. Tenants must be allowed "fair wear and
tear", but they must also look after the property as they would their own home.
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Who insures the property and contents?
The landlord insures the building and the landlord's contents. It is always advisable to have the most extended cover possible i.e. accidental damage
cover and cover for theft by tenant which is now available through specialist policies. Landlords must have insurance to ensure that they have public liability
cover on both buildings and contents. The tenant must insure their own possessions.
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What if the tenant damages my property
When fully managing a property, Gerard Nicholas will check your property regularly and any damage will be noted at these visits and the tenant instructed to put
the property into good order. The agent should also hold a deposit against damage and this can be used for genuine repairs which are the tenant's responsibility.
Should the deposit not cover the damage, Legal Protection insurance, if taken out, would pay for legal action to be taken.
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I have been told that there are various safety regulations. What are they?
Firstly there are the Furniture and Furnishings Regulations which state that all upholstered furniture supplied in let property must comply. This means, in simple
terms, that if your furniture is pre 1988 and post 1950, it probably will not comply and must be removed or replaced. Then there are the Gas Safety Regulations
which state that ALL gas appliances must be checked for safety at least once every twelve months; a record of that check must be made, it must contain certain
information and it must be handed to the tenant.
It would be good practice to install carbon monoxide detectors in let property. The Electrical Regulations are less precise but essentially all electrical goods
supplied in a let property must be safe and not cause danger. This means, by definition, that the electrical goods must be checked at some time by a competent
person. Other regulations also cover plugs and fuses which must be up to date and correct. Properties built since 1992 must be fitted with mains interlinking
smoke detectors on each floor. It is good practice to ensure that all let properties are fitted with smoke detectors.
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Are services generally included in the rent?
No. Tenants are generally responsible for electricity, gas, oil, telephone, water, sewerage and council tax. A professional agent will deal with the
closing of all accounts in the client's name and the opening of these accounts in the tenant's name. Managing Agents will settle the client's closing
accounts out of rent received. Certain other services are often included in the rent such as gardening, dailies etc. Also ground rent and service charges
are generally included.
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