Letting your property
A step by step guide
Thomas Morris Property Management have been successfully helping customers rent properties for many years. You will find clear answers to questions frequently asked by landlords by clicking on the links below. We hope the answers given will guide you through the steps that need to be taken from deciding to let your property through to the tenant moving in and beyond. For any queries relating to this guide, please contact your local Thomas Morris branch
1. How much rent will my property achieve?
Thomas Morris will provide you with a free rental valuation based on current rental activity in the local area – it is important to get the monthly rent right to ensure you maximise income but avoid pitching the figure too high to attract viewings. A discussion will also take place on when your property will be available, how long you wish it to be rented for and whether you will leave it furnished or unfurnished. Our service will then be tailored according to your requirements.
2. What do I need to do before placing it on the market?
There are a number of steps that are necessary, although these can be taken after you have placed your property on the market but prior to a tenant moving in. Issues include gaining the consent of your lender, if you have a mortgage, to allow you to rent out the property.
It will be advisable to address issues of poor decoration, worn carpets, no window coverings, overgrown gardens and so on, as these may effect the time it takes to secure a tenant and possibly reduce the achievable rent. Your Thomas Morris representative will advise you on such matters at the valuation.
There are also maintenance issues to consider – for example, if you have gas to the property, you will need a current Gas Safety Certificate. You will also need to provide your tenants with an Energy Performance Certificate (EPC). Furthermore, portable electrical appliances such as lamps or freestanding fridges and washing machines require safety (PAT) tests.
Finally, there are issues relating to insurance which must be addressed – we are agents for an insurance company who offer very competitive rates and are specialists in insuring rented properties.
Your Thomas Morris representative will talk you through a checklist and we can deal with all these issues for you.
3. Where do the tenants come from?
We have a state-of-the-art computerised matching system which will go to work within minutes of you instructing Thomas Morris. If that initial search is not successful, we attract new tenants by way of advertising your property on the internet (including www.rightmove.co.uk), in appropriate local newspapers and in our prominent office displays – the right tenant is out there, and we make sure no stone is left unturned in tracking them down!
4. Do I have to show the prospective tenants round my property?
Where appropriate, we can offer a full accompanied viewing service at no extra charge, however if you would prefer to show viewers round yourself, that is fine.
5. What happens when somebody expresses an interest?
When you receive an acceptable offer, our team at our Property Management and Administration Centre set the wheels in motion to ensure the deal reaches conclusion as quickly as possible. References and credit checks are carried out on the tenants and all necessary documentation is arranged (Gas Safety Certificates etc).
6. When do the tenants move in?
Once we are satisfied that the tenant is right for you, a date for occupation is agreed. Prior to that date, we carry out full Inventory of the property and a Schedule of Condition to ensure detailed contents and condition of all aspects of the property are recorded. This protects you as the landlord from problems and disputes which may otherwise occur later on as the tenant has to agree and sign this document upon moving in. You would need to arrange for final meter readings to be taken and inform the gas, electricity, water and telephone services as well as the Local Authority Council Tax department.
7. Do the tenants pay a deposit?
We will collect a deposit equivalent to one and a half’s month rent from your tenant which is held in a client account during the tenancy, plus one month’s rent in advance. The deposit is held under the Tenant Deposit Scheme – all tenancy deposits taken by landlords or agents for landlords in connection with an Assured Shorthold Tenancy (AST) must be protected by law under one of two types of statutory Tenancy Deposit Protection schemes, a single Custodial Scheme or one of two insurance based schemes.
To avoid disputes going to court, each scheme will be supported by an independent Alternative Dispute Resolution service (ADR), whose aim is to make any disputes faster and cheaper to resolve than through courts.
We elected to use one of the insurance based schemes – TDS (Tenancy Deposit Scheme) run by The Dispute Service. This means that we hold the tenants’ deposits in a separate account and pay an annual fee to be a member of the scheme. Within 14 days of receiving a deposit, we must provide the tenant with a certificate detailing prescribed information about the scheme being used.
On the departure of the tenant, we carry out a final inspection and any damage or essential cleaning over and above normal wear and tear will be paid out of the deposit subject to agreement with the tenant.
8. How and when do I receive the rent?
We will credit the rent (less relevant commission) to your nominated bank account each month and you will be sent a statement detailing income and expenditure. You are responsible for any tax due on your rent received. We recommend that you consult your accountant.
9. Who pays the bills while my property is rented?
Tenants pay rent, council tax, water rates and all other domestic bills.
You as the landlord pay the mortgage, building and contents insurance. If your property is leasehold, you will continue to pay the relevant leasehold charges – you will also need the permission of the freeholder to rent out your leasehold property.
10. What about the garden?
The garden is the responsibility of the tenant. If you want to leave a lawnmower, it will need PAT testing if it is an electric model and if it breaks down it will need to be repaired. If you have a particularly large garden, you may elect to include the services of a gardener in the rental price.
11. What if there is a problem with the tenant or the property while it is rented?
We undertake three inspections per annum to ensure all is well within your property. You will receive a letter from us after each one. Should there be an item within the property which has ceased to function or which is malfunctioning (e.g. cooker, immersion heater etc), you as the landlord have a responsibility to rectify it. We can arrange all such essential repairs on your behalf.
All appliances left in property will remain the responsibility of you as the landlord. If they break down, they will have to be repaired or replaced and the cost will be borne by you.
We operate an emergency service which will deal with any problems outside of normal working hours. This covers situations such as no heating, no electrics, water damage etc. We will organise work with our maintenance companies and advise you the next working day.
If you have opted to be included in our Managed Plus package, then this protects you against non-payment of some rent during the first 12 months of the tenancy (for the full details and conditions, please speak to your Thomas Morris representative)
12. What about tax on my rental income?
Tax payable to the Inland Revenue is on the profit made above the mortgage interest amount. You can offset certain items such as our fees and some repair costs.
If you are an overseas landlord, you will require Inland Revenue Tax forms to be completed. We hold these in our offices.
Until we receive confirmation from the Inland Revenue, we are required by law to deduct 20% tax from overseas landlords’ rental income.
We suggest that you seek advice from your accountant on the above issues.
13. What happens at the end of the tenancy period?
The property will be let on an Assured Shorthold Tenancy, normally for a fixed period of 6 months.
Should you wish to retake possession of your property at the end of the first 6 months contract, notice will need to be served to your tenants prior to the 4th month of the contract – our Administration Centre will contact you at the appropriate time to discuss your options as follows:
a) You can sign a further 6 months agreement with the tenant or
b) Give the tenant the required 2 months notice or
c) Allow the existing tenancy to become Statutory Periodic Tenancy (monthly) – in this case, you are required to give two months notice prior to the rent due date, the tenant needs to give 1 months notice.
At the end of the tenancy, we will carry out a Final Inspection which involves us returning to the property immediately after the tenant has vacated and checking the property against the original inventory. You have to allow for normal wear and tear, any damage will be dealt with from the deposit subject to agreement from the tenant. A dispute, after proper attempts have been made to resolve it can be notified by either party to the administrator of the Tenancy Deposit Scheme. The disputed amount will be sent to the scheme administrator and evidence will be considered. Once a decision has been made, the scheme administrator will allocate the amount with 10 days.
14. How much does it all cost?
For full details of all the fees and charges involved in letting and/or managing your property, please call your local Thomas Morris branch.
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