Landlords FAQs
The following section provides answers to questions frequently asked by landlords.
How do I start?
Begin by contacting us at Rutherfords Lettings and we will provide a free appraisal of your property along with advice on such matters as how you could improve the property's rental potential and whether to furnish or part furnish it. We can also help you find a suitable tenant, and if you wish, we can provide full property management services including collection of rents and property visits.
Signing the agreement
If we take on the management of your property, we will provide a tenancy agreement, the cost of which is charged to the tenant. We also charge an initial fee of £250 plus VAT and take a 10% commission from each monthly rental payment.
Alternatively, under our Property Owner Service, we will provide reference checks on all prospective tenants and a six month Assured Shorthold Tenancy Agreement at a cost to you of £300 plus VAT. We can also take on the handling of your existing tenancy. Call us for details.
What are my responsibilities?
If you have a mortgage or a loan on the property, you should inform your lender in advance of the proposed letting. This will require their consent. You may require the consent of the freeholder in cases where your property is leasehold. You should also let your insurance company know, and you will need to ensure that your policy covers third party/public liability. Tenants usually pay council tax due during a tenancy period, but it is worth checking this out as cases can differ.
Do I need an inventory?
Yes. This is an important element of the lettings process. We can prepare one on your behalf. Landlords operating without inventories can find themselves in serious difficulties, so this matter should not be overlooked.
Who handles maintenance and repairs?
The landlord is usually responsible for maintaining and or repairing the property. Similarly, the landlord normally pays the ground rent or any service charges on the let property.
Must I pay tax on rental income?
This depends on each landlord’s individual finances and circumstances and if you are in doubt, you can seek guidance from our sister organisation, Rutherfords Solicitors, who have extensive experience in lettings matters.
What safety checks do I need to undertake?
Electrical testing
Landlords are urged to have electrical appliances tested for safety, as the latest Health and Safety Executive statistics show that around 1000 electrical accidents are reported annually with around 30 people actually dying of their injuries. 25% of all reported electrical accidents involve portable electrical appliances. A portable appliance includes a television, kettle, hair dryer, electric blanket if it is connected to the mains electricity. Even non-fatal shock can cause severe and permanent injury.
Landlords have a responsibility under the Electrical Equipment (Safety) Regulations 1994 to ensure that all supplied electrical appliances are safe. The regulations provide for the defence of ‘due diligence' - in other words the landlord must show that he or she has taken all reasonable measures to ensure compliance and safety. Unlike the gas safety regulations, there is no mandatory checking period and no requirement for a safety certificate to be issued.
We strongly recommend that all landlords, whether or not they let property in the course of a business, ensure that electrical appliances are checked for safety, and arrange periodic checks by a qualified electrician. Arrange a reputable Portable Appliance Testing (PAT) service to test portable appliances in the property and keep copies of the reports and certification supplied. A regular system of checks should ensure that landlords can satisfy the ‘due diligence’ test imposed by the Electrical Equipment (Safety) Regulations 1994.
Breach of the regulations is a criminal offence and can be enforced by the Health and Safety Executive. In addition, if a tenant suffers harm due to a defective appliance such as a faulty kettle, and the landlord cannot show that reasonable steps have been taken to ensure safety, a tenant may bring an action in the county court for damages.
This is a distressing, costly and time consuming business for all concerned, underlining the need to take preventative measures early on through regular and professional testing. For more information, or to arrange a PAT test, call Rutherfords Lettings on 01827 310410.
Gas safety checks
Landlords should be aware that the Gas Safety, Installation and Use Regulations 1994 places a legal requirement on Residential Landlords to ensure that any gas appliances within a let property are serviced by a 'Gas Safe' registered contractor on an annual basis, and that these appliances are maintained in a serviceable and safe condition in accordance with the regulations. Failing to comply with the regulations is a criminal offence and may also invalidate your property insurance.
The regulations also require that appropriate records are kept giving details of the appliance within the property and the dates on which inspection and necessary servicing and repair has been carried out. A current Safety Certificate must be available for any tenant prior to them taking occupation of a property.
Rutherfords Lettings can arrange for the Inspection and Gas Safety Certificate with a 'Gas Safe' registered engineer.
Building Regulations 1991 – Smoke Alarms
The 1991 Building Regulations require that all properties built since June 1992 must be fitted with mains operated interlinked smoke detectors/alarms on each floor. Such regulations regarding older properties do not exist but we strongly recommend that smoke alarms are fitted in all let properties and are regularly checked to ensure that they are in good working order.
Energy Performance Certificates
Energy Performance Certificates have been introduced to help improve the energy efficiency of all buildings - including homes. They are required on the construction of new homes and are needed for rented homes the first time the property is let after 1 October 2008.
EPCs form part of a programme of work that will make a difference to the 50 per cent carbon emissions from buildings. Other changes include providing advice to users on the energy efficiency of their heating and hot water systems.
Rutherfords Lettings can arrange for an EPC to be carried out on the property by a registered company at a cost of £60 plus VAT.
What insurance do I need?
There are 3 types of insurance for landlords: Landlord house insurance, Landlord building insurance and Landlord contents insurance.
Landlord insurance is not legally required but is highly recommended. As a responsible property owner it is recommend that you have at minimum your buildings insured as a property could be worth hundreds of thousands of pounds and is normally a long-term investment for the owner. An unexpected incident could cause significant damage to this investment and, if a landlord's insurance policy isn't in place, could mean a loss of a considerable amount of money should the worst happen. As a landlord you will also want insurance in place to provide property owners liability to protect yourself against claims from your tenant holding you liable for any injury they may have received within your property.
