GUIDE TO LETTING
A GUIDE TO LETTING AND OUR SERVICES:
Services:
Let Only – 9.6% inclusive of VAT (8% plus VAT)
- Initial market appraisal
- Advertising your property
- Arranging and carrying out viewings
- Vetting tenants through our specialist reference agency to ensure they are financially in a position to rent your property (fee applicable)
- Ensuring tenants meet current legislation relating to Right to Rent checks
- Rent guarantee insurance policy, subject to terms and conditions (fee applicable)
- Preparation of tenancy agreement prepared by our company solicitors (fee applicable)
- Collection of initial cleared funds prior to move in (normally one month’s rent and a deposit also the equivalent to five weeks rent), payable to landlord on commencement of a tenancy
- Organising tenant move in, liaising with inventory clerks and arranging key handover
- Liaising with landlord and tenant regarding renewals, extensions, rent reviews and the serving of relevant notices
Rent Collection – 12% Inclusive of VAT (8% plus VAT)
This service includes everything listed in our let only service but also:
- All matters relating to rent
- Setting up of payments
- Collection of rent
- Payments of rent to landlords
- monthly statements
- Chasing any late payments
- Initiating rent and legal claims where necessary
- End of year income and expenditure report
Full Management – 14.4% Inclusive of VAT (12% plus VAT)
Our management include everything listed in our Let Only and Rent Collection but also:
- First point of contact for tenants regarding maintenance issues
- Arranging estimates/quotes and organising maintenance and repairs to be completed when required
- Arranging professional inventory and check in/out where requested (fee applicable)
- Six monthly property inspections
Our Let Only fee is payable in advance. Our Rent Collection can be taken in advance or monthly.
Legal Requirements:
Client Money Protection Scheme:
Client Money Protection Schemes (CMP) CMP schemes protect client money (such as rent and deposit monies) which is received by agents. Their schemes make sure landlords and tenants are compensated if an agent cannot repay their money, for example if an agent goes into administration. It is a legal requirement for agents to be registered with a Client Money Protection Scheme.
R L Morris Scheme Number: CMP002037
Energy Performance Certificate
In Accordance with the European Energy Performance of Buildings Directive all buildings in the UK that are constructed, sold or rented must have an Energy Performance Certificate.
In 2008 it became mandatory for all rented properties being marketed to have an Energy Performance Certificate. This certificate shows the official energy rating of a building, and provides a rating for A-G (A being the most efficient and G the least) regarding the buildings environmental impact. This is shown in a graphical format and also includes recommended ways to improve the buildings energy performance.
These certificates are seen as a way to improve energy efficiency within a building to reducing energy consumption, thus reducing carbon emissions. The certificate not only provides details on a buildings performance but may also help you find out if you may be eligible for grants or discounts to help carry out any of the recommended improvements.
As of 1 April 2018 there is a requirement for any properties rented out in the private rented sector to have a minimum energy performance rating of E on an Energy Performance Certificate (EPC). The regulations came into force initially for new lets and renewals, but extended to existing tenancies on 1 April 2020.
The government have proposed that all rental properties will need an EPC rating of ‘C’ or above by 2025. Similar to the previous changes, the new regulations will be introduced for new tenancies first, followed by all tenancies from 2028.
Legionella Risk Assessment:
It is now a requirement that all Landlords of residential rental properties must have a Legionella Risk Assessment completed every two years to comply with the law. The relevant legislation can be viewed at www.hse.gov.uk/legionnaires.
The risk assessment survey must be performed by a professionally trained and accredited body and to this end we can arrange, if you require, an approved contractor that can be used to conduct surveys on your behalf.
Property License:
Many councils now require landlords to obtain a property license in order to let a property. The condtions of the licenses vary and you must check with your local council if you are considering letting your property. R L Morris can advise, prepare and submit licenses on behalf of landlords, ensuring all of your oligations are met.
Gas:
It is a legal requirement for an owner of any gas appliance, pipe work or installation to ensure that a GAS SAFE registered engineer carries out a safety check every 12 months. The regulations cover all types of gas including Calor or Propane. Any owner or person with authority must not allow a supply to remain connected if they are aware of any potential risk or danger, any defective or dangerous pipe work must be repaired or replaced immediately. A record must be kept of all safety inspections and available for a tenant’s inspection.
Electricity:
From 1 July 2020 for new tenancies, landlords must ensure that electrical installations are inspected and tested by a qualified person before the tenancy begins. For properties with existing tenancies, an Electrical Installation Condition Report must have been completed by 1st April 2021. The electrical installation in all rental properties must be checked regularly as specified by the NICEIEC Electrician with a maximum of 5 years between inspections.
Smoke Detectors:
All properties built after 1992 must have a mains operated smoke detector on each floor.
It is a legal requirement that all rental properties in England follow the Smoke & Carbon Monoxide Regulations.
These regulations require that you install at least one smoke alarm on every floor of the property where a room is used wholly or partly as living accommodation.
Carbon Monoxide:
As of October 1st 2015, all landlords of private residential rental properties are required by law to install carbon monoxide detectors in any room that includes coal or wood burning fires and stoves. ... So we would recommend landlords install CO alarms for gas appliances as well.
Furniture and Furnishings:
There are specific requirements for furniture and upholstery items in furnished properties. The specific law regarding furniture is set in 1988 by The Furniture and Furnishings (Fire Safety) Regulations.
All furniture provided in rental properties must meet safety standards. These regulations do not apply to furniture manufactured prior to 1950.
For more info please do hesitate to contact us.
The Tenancy Deposit Scheme:
It is a legal requirement that should a property be let under an Assured Shorthold Tenancy, every tenants deposit must be covered by a Tenancy Deposit Scheme. R L Morris are members of MY DEPOSITS, a government authorised Tenancy Deposit Scheme supported by regulated lettings industry bodies such as NALS (National Approved Lettings Scheme). Regardless of service all deposits must be registered in an accredited scheme.
You as landlord can enter the deposit into a custodial scheme, where the deposit is held throughout the tenancy and the landlord and tenant agree on how the deposit should be returned. The alternative is an insured scheme which can vary in cost. We offer the service of holding the deposit as stakeholder and for a far smaller premium we will register the deposit with MY DEPOSITS and provide landlord and tenant with certificates with the relevant details. Should a dispute arise under either scheme then an independent arbitrator will be appointed to make a decision. Whichever scheme is chosen the tenant must be notified of where their deposit is being held within 14 days. Failure to comply with the legislation will result in a penalty fine, and any Section 21 Notice Requiring Possession served will not be valid.
Inventory:
Due to the introduction of the Tenancy Deposit Scheme it has never been more important than now to make sure a comprehensive list of fixtures and fittings, including a condition report is drawn up and agreed by both landlord and tenant at the commencement of the tenancy by a qualified professional. It is recommended by R L Morris that an independent inventory clerk is appointed, thus ensuring that no stone is left unturned.
Taxation:
We decided to leave the dullest part of letting until the end! If you are a UK based landlord you are required to pay tax on any income or profit you make on a rental property. Income tax is payable on any rental income you receive from a property.
There are a number of deductions, or allowable charges, that can be written off as non-taxable expenses. We suggest you use the services of an accountant who can attend to those matters.
If you are an overseas landlord the rent receiving agent is required to deduct a basic rate of tax from the rent (after taking deductible expenses paid out into account) and pay the tax to the revenue each quarter. If you opt for our Let Only service your tenant would be legally responsible for the deduction of tax to the Inland Revenue of the rent payable.
However you can apply to the Revenue for exemption from this providing your tax history is up to date. Once approved an exemption certificate will be issued and copy sent to our management department allowing us to pay rent to you without tax deductions.
Tax returns are the responsibility of the landlord.
Please note that the above information was correct at the time of this website going live, and therefore may change in accordance with law.
For avoidance of doubt please contact R L Morris should you need any further information or updates.
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