Agreeing the Let
Once you have found suitable tenants for your property you will need to agree the terms and conditions of the let with them. Essentially, it is at this point that you must determine who is responsible for what. Who looks after the property and its tenancy will depend on the terms of the tenancy agreement you have. But here are a few of the more usual responsibilities:
Landlord’s responsibility to:
- Repair the property
- Pay the building insurance
- Pay any ground rent and service charge where applicable
- Insure any items, such as furniture and kitchen equipment included in the property.
- Not to discriminate on the grounds of sex, race, sexual orientation, age, religion, marital status or disability.
Letting agent’s responsibility to:
Get written references for the prospective tenant. Usually these include:
- Credit reference check.
- Current and previous employer(s) to confirm both if the tenants is a permanent employee, and their salary.
- Current and previous landlord(s) to confirm whether the rent was paid on time , is not outstanding and that the property was kept in good condition.
- Where needed, guarantor’s references.
- Ensure a Assured Short hold Agreement (where appropriate) is completed.
- Obtain the necessary deposit and initial rent.
- Complete the inventory checks on the property.
Tenant’s responsibility to:
- Pay the rent and deposit.
- Pay or make a contribution towards the bills, as well as any other costs agreed and stated clearly in the tenancy agreement, such as:
- Inventory and tenancy agreement costs.
- Administrative charges
- Responsibility for Council Tax, water rates, gas, electricity, telephone charges, television license fee, etc.
- Return the property to you at then end of the tenancy in the same condition as at the state of the tenancy allowing for fair wear and tear.
Landlord’s Checklist
Here is a brief summary of the various costs to consider when letting your property:
Gas and electrical testing
You will need to ensure that you have tested all gas and electrical appliances to ensure they comply with current safety standards. This will need to be undertake by a qualified professional and there will be charges made for this service.
Insurance
You need to ensure that you have insurance on your property and make sure
you know exactly what ‘s covered in the policy.
Letting agent’s fees
There are likely to be fees incurred for employing an agent to undertake the administration and management of your property. Charges vary from one agent to another, so it’s worth checking the fees in your area.
Repairs and maintenance
Any repairs or maintenance that is required on the property will need to be paid for by the landlord.
Storage
You may have to put some of your furniture and furnishings in storage if the tenant brings his /her own belongings. The costs of the storage will need to be covered by the Landlord.
Tax
Landlords are liable to pay tax on gross income received from rent. Further information is obtainable from the Tax Office.