The Tylers Landlord Service - introduction

 

The principle of full-property management is straightforward. You, as a landlord, should expect your agent to provide honest and accurate advice based upon detailed market knowledge and up to date information on changes to legislation and how it affects you. They should actively source for you the most suitable tenants for your property and make rigorous enquiries into their standing. Your agent should create a fair tenancy and manage it professionally from inception through until expiry, ensuring that all parties are satisfied with their conduct. You should expect your rental income to be collected and forwarded promptly and without undue hassle, attending to routine maintenance and repairs at the best possible rates, without unnecessary disturbance but with authority. You should be fully informed and advised by experienced, qualified professionals. Without exception you should be treated as an individual.

 

The ethos of Tylers property management is based upon these firm foundations; personal experience and industry recognised qualifications combine seamlessly to provide you with the peace of mind to entrust us with one of your most valuable assets; to take the first step to putting us to the test Call (01223) 214400, email us, or Visit us.

We look forward to working for you!

 

Our Services:- Tylers residential lettings offers 3 basic levels of service:-

·         Let Only Service

·         Let and Rent Demand

·         Full Management

 

Let only service includes:

_ Inspection and rental-appraisal of the property.

_ Advice and recommendation on any maintenance, health & safety and furnishing issues.

_ Marketing of the property including website listing (on both our dedicated website and rightmove).

_ Accompanied viewings of the property with prospective Tenants and comprehensive feedback.

_ Vetting prospective Tenants by obtaining references and, in normal circumstances, a credit history report.

_ Preparation and implementation of a tenancy agreement which protects the landlords rights.

_ Collection of initial rent and deposit. Then ensuring that the deposit is handled in line with legislation.

_ Completion of a standing order mandate for the payment of future rent.

_ If required, to retain the deposit in an insurance-based scheme in accordance with the Tenancy Deposit Protection Regulations introduced by the Housing Act 2004

(see Tenancy Deposit Protection section for fuller explanation).

   Provision of a detailed inventory and schedule of condition

Upon commencement of the tenancy the landlord is provided with the rent and completed tenancy agreement in order that they can manage the tenancy themselves

 

Rent collection service (as let only) plus:

_ Retention (in an insurance based scheme) of a deposit paid by the Tenants against any

repairs or cleaning to be found necessary at the end of the tenancy.

_ Transfer of service account liabilities for electricity, gas, water and Council Tax.

_ Monthly rent collection throughout the tenancy

_ Monthly payments by BACS, or cheque and statement reports to landlords.

_ If necessary, initiation of court proceedings for rent recovery or repossession, and

representation in court (court costs may be incurred).

_ Newsletters; periodically sent out with monthly statements.

When Tylers are instructed on this basis the landlord is responsible for any matters arising during the tenancy which are not related to the collection of the rent.

 

Full management a comprehensive service including rent collection, plus:

_ Preparation of a complete detailed inventory of property contents and condition.

_ Quarterly inspection visits to the property followed by reports to landlord and tenant.

_ Arranging routine maintenance and repairs at preferential rates.

_ Resolving problems including emergency 24 hour call out services for Tenants.

_ End of tenancy management, including final inspection and the repayment of deposit (less any amounts held for dilapidation).

_ Tax liability calculations and tax accounting service (additional fee applies).

Legislation

 The letting of residential property is covered by a plethora of legislation; for the most part this is well known and understood by both landlords and tenants alike; it is however an agents duty to ensure compliance with this legislation, advising where necessary.

 

Tenancy Deposit Legislation

 

In an attempt to prevent unprofessional landlords and agents from unfairly withholding damage deposits from tenants the government has introduced legislation within the Housing Act 2004 requiring the deposit to be safeguarded. The landlord or his appointed agent has a duty to ensure that the deposit is protected by one of 3 approved schemes within 30 days of taking it, the tenant should be provided with the “section 213” prescribed information at this point. The options are custodial (www.depositprotection.co.uk), or insurance backed (www.thedisputeservice.co.uk or www.mydeposits.co.uk ). We will discuss these options with you prior to taking your instructions to let; naturally the decision is yours but the work will be completed by Tylers residential lettings.

 

The introduction of this legislation, coupled with the stiff penalties for failing to comply have brought into sharp focus the importance of a detailed inventory of your property and its contents. We work to ensure that this inventory is checked before and after the tenancy, resolving issues in the professional manner which you would expect from an organization of our standing. We will administer the deposit in such a fashion as to avoid the potential pitfalls of failure to comply with the new regime, thereby providing peace of mind to landlords and tenants alike.

 

The Furniture & Furnishings (fire) (safety) Regulations 1988

 This legislation was introduced primarily to cover foam filled furniture; commonly produced in the 1960’s and 70’s, it does however apply to all soft furnishings found in property. With the exception of carpets, curtains, bedding, and furniture manufactured prior to 1950 all furniture should display a “fire safety label”. This detail is extremely important and should be checked prior to letting your property out furnished, if you have any queries please discuss with one of our staff who will be pleased to advise you.

 

The Gas Safety (Installation & Use) Regulations 1998

  It is a requirement that all gas installations; cookers, boilers, convector heaters, etc. (regardless of age) are inspected and tested annually by a qualified GAS SAFE gas engineer. You will receive a certificate with copies provided to Tylers property management, and the tenant. As part of our full management service this certificate will automatically be updated each year, you are well advised to have the systems serviced at the same time as part of your ongoing programme of maintenance.

 

 

 

The Electrical Equipment (Safety) Regulations 1994

 The law relating to electrical appliances and systems is less clear cut, we recommend that a common sense approach should be adopted. The main legislation covering this subject would be the Consumer Protection Act 1987 which states that anything supplied or hired to the consumer MUST be safe, and The Health & Safety at Work Act 1974.

It is generally best practice to arrange for a safety certificate to be completed by a qualified electrician, Tylers property management can organise this for you through our approved electrical contractors at a favourable rate.

 

A further requirement under the part “P” Building regulations (Electrical Safety in Dwellings) is that certain works-known as notifiable works- to the electrical installations must only be carried out be a competent person, the maximum penalty being a fine of £5000, prison, or both! We recommend that if you have any questions on this topic you contact one of our staff who will be happy to advise.

 

Smoke alarms/ Carbon monoxide detectors

 Since June 1992 it has been a requirement for all new properties to be constructed with mains interlinked smoke detectors on each floor, older properties are not generally subject to this legislation. We would unreservedly recommend that you should consider installing such a system; however as a bear minimum battery operated smoke alarms should be installed on each floor. Tenants are responsible for the maintenance of the batteries in such a system; more stringent rules apply to HMO’s.

It is not yet a legal requirement to install carbon monoxide detectors (audiable or visual) in rental property; it is considered good practice however to do so.

 

Insurance

As a landlord you will still be responsible for the insurance of the building and your personal possessions contained within it, it is important that you notify the insurer that the property will be let to ensure that you remain covered.

We are proud to have formed a partnership with a leading local insurer N W Brown, who are able to provide a range of insurance products tailored to the needs of landlords. For further details of Contents & Buildings Insurance, and Rent Guarantee Insurance, or other products please visit

www.nwbrown.co.uk

Email: landlords@nwbrown.co.uk

Telephone: 01223 720350

In writing to:

NW Brown Insurance Brokers Ltd

Richmond House

16-20 Regent Street

Cambridge

CB2 1DB

 

Overseas Landlords- Tax obligations

New regulations came into force in 1996 on responsibility for tax liabilities on rental income for non-U.K. resident landlords. We can advise you of your liabilities and the procedures to be followed to satisfy the Inland Revenue, briefly outlined below:

If your normal place of work is not the UK, you will normally be considered by the Inland Revenue as “non-resident” for taxation purposes.

Under the Income Taxes Management Act 1970 as amended by the Finance Act 1995 the Inland Revenue will require us, as your agent, to withhold tax from the rental income at basic rate (currently 22%) and to pay tax over quarterly to the Inland Revenue.

However, you can apply to the Centre for Non-Residents (CNR) for an “Approval number” which will allow for your rental income to be paid without deducting tax.  This will involve you:

• agreeing with the Inland Revenue that your tax affairs are up-to-date or that you have no tax liability
• submitting to the Inland Revenue an Annual Statement of Income and Expenditure and net tax liability
• informing the Inland Revenue when you return to the UK to live.
 
When approval has been given, the Inland Revenue sends

• a notice of approval to receive rent with no tax deducted to you, the landlord, and
• a separate notice to us, the letting agent (or tenants named on the application form) authorising us to pay rent without deducting tax.

This authority to pay rent with no tax deducted is generally backdated to the beginning of the quarter in which the Inland Revenue receives the application. As the tax year for the Non-resident Landlords Scheme starts on 1 April, the quarters are the three-month periods that end on 30 June, 30 September, 31 December and 31 March. So if you were to apply to the Inland Revenue on, say, 1 August, the authority sent to us (or the tenant) will usually take effect from 1 July.
Applications should be made via the following forms:

• NRL1 (for individuals)
• NRL2 (for companies)
• NRL3 (for trustees)
• By letter (for foreign immunes)

Many people are entitled to set personal allowances against their income.  If your income after allowable expenses is less than the available personal allowances, you will not be liable for tax.

To download these forms or for further information on overseas landlords tax, please visit www.hmrc.gov.uk.

 

 

Checklist

 

Having taken the decision to place the property into the safe hands of an ARLA member agent to be let there are certain important points which should not be overlooked. You should contact the following to ensure that they consent also to the letting of the property:

Mortgage lender

Insurer

Freeholder (leasehold property ie. Flats)

Any other joint owners!

Furthermore it is essential that you advise HMRC that you will have income from “land and property” this even applies in a situation where you do not expect to make a profit from rental income. There are many allowable deductions from rental income for tax purposes such as; mortgage interest payments (not capital though), agents fees, repairs (but not improvements). We would recommend that you seek the advice of a qualified chartered accountant or tax adviser for advice on your personal tax situation.

  

 

 

 

Useful Links

 

At Tylers we welcome your questions, queries, and the opportunity to provide helpful advice and guidance. The following lettings related links to associated websites may also yield useful information.

 

www.arla.co.uk

 

www.nalscheme.co.uk

 

www.naea.co.uk

 

www.gov.uk/buy-sell-your-home/energy-performance-certificates

 

www.thedisputeservice.co.uk

 

www.depositprotection.co.uk

 

www.mydeposits.co.uk

 

www.rightmove.co.uk

 

www.hmrc.gov.uk