Questions & Answers

Q1 Where do I begin?

Arrange for a professional letting agent to visit you at your property where they can view and carry out a market analysis. This is based on the following:

• Current “To Let” price of similar properties on the market nearby.
• Market demand from prospective tenants.
• Prices recently achieved for letting similar properties within the same area.
• Significant improvements and works carried out to the property.
• A market analysis will give you an estimated market rental. This will enable you and your agent to decide on the rental price.

Q2 Can I do it myself or do I require a letting agent?

For peace of mind it is definitely advisably to use an agent. Reputable Agents provide specialist letting agreements. They will also advise on your obligations under safety regulations. It also depends on whether you have the time, expertise, resources and patience to do it yourself.

It can be be very time-consuming and paying to adverstise your property, vetting tenants, fielding calls, being available for viewings and drawing up contracts can also be costly. Agents can field all calls relating to the let and are adept at weeding out time wasters. This is very useful if you go out to work.

Q3 How do I choose between letting agents?

It is important not to be swayed by valuation alone and some people immediately proceed with the agent who puts the highest value on their property. If a valuation is exaggerated, you could lose weeks of rental income, while your property remains static of the market un-let.

It is advisable to look out for:

• Clear and helpful Literature
• Specialist team dedicated to letting
• Well-trained, polite and friendly staff
• Well maintained website with full property details.
• Efficient systems
• Exceptional marketing e.g. internet, signboards, leaflet distribution and newspapers.
• Aftercare, monitoring throughout the tenancy.

Lettings is different from sales in the fact that you do not have to commit to sole agency. This means you can market your property with more than one agent, without restriction of a higher fee.

Q4 How do agents charge their fee?

A rental valuation of your property is free and you only pay commission if and when the agent successfully lets your property. It is a “No let No fee basis.

Q5 How should I furnish the property?

You can offer the property to let ‘furnished’ or ‘unfurnished’, your agent should be able to advise you

Furnished:
Simple, modern furnishings suit most people. It is advisable not to leave any personal items such as TVs, hi-fi, ornaments and pictures that could easily get damaged or lost. It is important that if you do not wish to repair such items, do not provide them.

White goods Washing machine, microwave, fridge freezer, bed(s), cooker, sofa, dining table and chairs. (please see information on safety regulations)

Unfurnished:
You should still provide standard white goods (as above).

Q6 How long will it take to find a suitable tenant?

Agents with an effective website and computerised systems will maximize the speed of your let. In general the letting process can take anywhere between a few days to several weeks. It can depend on market demand and the efficiency of the agents systems and marketing. Tenant referencing checks can take a week or more, however some agents can offer fast track referencing within 72 hours.

Q7 How do I undertake tenant referencing checks?

A good reputable agent would normally provide tenant vetting within their letting service. This normally involves a professional credit and fraud check and perhaps obtaining written references. This will highlight whether or not the prospective tenant has any county court judgements against them, and the tenants ability to afford the rent. References may also be obtained from a prospective tenants employer and from a previous landlord.

Q8 Can I be sure ill get my property back at the end of the tenancy?

The Housing Act 1988 (as amended by the Housing Act 1996) has helped protect landlords from sitting tenants. It is however, very important to choose a letting agent who uses an Assured Shorthold Tenancy. This agreement contains a clause that the property is yours to possess again at the end of the tenancy. It will also establish who will pay for the water, council tax etc. It will also set down rent payment details.

Q9 What does property management involve and do I need this service?

Property management is where the agent looks after the property on behalf of the landlord once the tenancy commences. This takes the onus off the landlord by dealing with day-to-day tenancy issues, property repairs and emergencies. Property management usually consists of:-

• Administering rent payments and statement of accounts
• Property maintenance by arranging repairs
• Property inspections to check condition is maintained by tenants
• Chasing late rental payments

Q10 What are my obligations during the let?

One of the main objections by law is to let the tenant have ‘exclusive, quiet enjoyment’ of the property. As the tenant is paying rent for the property its only fair that anything that goes wrong is put right.

The landlord should arrange for any repairs relating to the letting, to be carried out promptly. You must also ensure your property complies with safety regulations. (please see information section which covers this)

Q11 Are there any deductibles and is rental income taxed?

It is recommended that you seek professional tax advice as many letting expenses can be offset against tax on rental income. Most agents recommend specialist property accountants.

Examples of tax deductibles are: -

• Letting agent’s fees
• Repairs (not improvements)
• Legal and accounting costs
• Insurance
• Wear and tear of contents
• Unused personal allowances
• Some loan interest
• Ground rent

General guidance notes for Landlords

• Under current legislation the tenants are directly liable for the payment of council tax, except in the case of student occupation or where the premises are in multiple occupation under a single band assessment.
• It also standard with the industry that tenants are responsible for utilities such as gas, electricity, water rates and TV licence etc. However this does not include any landlord service charge or ground rent.
• If the landlord has a mortgage, it is normal for mortgage companies to require notification of any proposed letting and the landlord should seek consent if applicable. In the case of leasehold premises the consent of the head lessee or freeholder will normally be required. The Landlord should also advise his or her insurance company of their intention to let the property as this may require an increase in any premium.

10 good reasons why you should use Davis & Gibbs?

• We work extended opening hours to 8pm nearly everyday and 5pm Saturdays. We also open Sundays solely for viewings purpose.
• Well located office in prime location which is ideal for walk-in trade.
• Advanced IT and property management systems in place
• Cutting edge website and property portal marketing
• Targeted corporate advertising
• Expert property consultants accompanying viewings on your property.
• Over 20 Years combined experience within the London letting market
• Safety regulations explained and can be arranged by Davis & Gibbs Ltd if required
• We provide our landlords with professional tenant credit referencing.
• Email and text marketing to any enquiries all day / everyday

10 good reasons why we should manage your property?

• We receive and pay rent to you. You are sent monthly statements of account for your tax records
• Arrange repairs on your behalf with your approval using professional, competitive, reliable contractors.
• Contactable 24/7, 365 days a year for the tenant for emergency repairs subject to our terms and conditions.
• Check- in and check-out service which records the condition of your property contents.
• Regular property inspections to help maintain your property’s condition
• Professional cleaning as needed before commencement of any tenancy.
• A dedicated (in office) property manager dealing with the day to day management for your property. This means you always speak to the same person.
• You are spared the inconvenience and sometimes time consuming hassle of dealing with a tenant or tenants
• Late rent automatically chased and a licensed PDQ and automated banking facility for receiving rents.
• Kept up to date with important legislation and regulations if they change. We also make sure that any mandatory safety certificates are renewed when required.

Safety regulations and requirements:

Certain legislation requires that safety checks be made before a property can be let. The following checks need to be satisfied: -

• Gas Safety (Installation and Use) Regulations 1994 (as amended)
• The Electrical Equipment and (Safety) Regulations 1994; Plugs and sockets etc(safety) Regulations 1994:
• The Furniture and Furnishings (Fire) (Safety) Regulations 1988(as amended):
• The General Product Safety Regulations 1994:

Furniture and Furnishings (Fire) (Safety) Regulations 1988(as amended):

A Landlord needs to ensure that all upholstered furniture complies with these regulations. In 1988 the government introduced new regulations on the use of any filling material or re-upholstery whether foam or non-foam and the requirements of furniture to meet the “cigarette test” introduced in 1980.

From March 1993 all newly rented furnished properties should only be furnished with contents that meet the “cigarette test” and carrying the appropriate label. Furniture manufactured prior to 1950 is exempt from these regulations as the Department of Trade and Industry has pointed out that most of the defective materials that cause fire were not in use prior to 1950. All furniture manufactured after 1983 should already comply with the regulations but there is particular concern for foam filled furniture manufactured between 1950 and 1983. The Landlord must ensure that furniture complies with the above legislation before allowing a tenant to occupy the property. Any furniture failing to comply must be removed by the Landlord and stored at the Landlord’s expense. The regulations generally cover the need for fire-resistant filling material to upholstered articles, and the match-resistant and cigarette-resistant test. (Further information can be obtained from the DTI, Consumer Unit Room 302/303, 10-18 Victoria Street, London SW14 0NN).

Gas Safety (Installation and Use) Regulations 1994 (as amended)

On 31st October 1994, the Gas Safety (Installation and Use) Regulations 1994 came into force. Under Regulations 35(2) it is the duty of any person (i.e. Landlord) who owns a gas appliance and pipe work installed in the premises, to ensure that such appliance and pipe work installed in the premises is maintained in a safe condition so as to prevent risk or injury to any person. The Regulations cover all appliances and all types of gas for heating, lighting, cooking or other purposes for which gas can be used. The owner (i.e.: the Landlord) of any gas appliance must ensure that each appliance is checked for safety at least every 12 months by a qualified gas engineer, e.g. an employee of British Gas or a CORGI registered person. A record must be kept of all safety inspections and the results open to the tenant by law. The landlord must have a Gas safety Inspection carried out before allowing a tenant to occupy the property and sign a tenancy agreement. Please note that one copy of the current record of the safety test certificate is to be kept on the premises and a landlord or landlords agent must also provide a certificate for each tenant. (Further information can be obtained from British Gas on 0800 300 363). If the Landlord is unable to, Davis and Gibbs Ltd will provide the certificate at the Landlord’s expense).

The Electrical Equipment and (Safety) Regulations 1994; Plugs and sockets etc(safety) Regulations 1994:

It is a criminal offence to supply unsafe electrical equipment with rented accommodation. The above regulations apply to portable domestic electrical equipment such as: Electric heaters, lamps, televisions, radios, vacuum cleaners, irons, toasters, microwaves, refrigerators and other kitchen equipment. Built-in electrical goods such as cookers and certain storage heaters are not covered by the Regulations; however, Landlords should be aware that any person injured by the Landlords property could sue for damages.

Electrical items must be examined by a qualified electrician prior to the tenants taking occupation and if required we can instruct an approved contractor to carry out this safety check on your behalf..

Landlords must ensure all electrical equipment, appliances, and electricity supply is safe. Instruction booklets or clear instructions must be provided for these. Plugs and sockets that are newly installed must conform to the appropriate British Standard or approved alternatives. Plug and socket regulations are not retrospective, but any relevant equipment included in a new tenancy after the start of the new regulations must comply.

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