Landlord Information

Cyniga Eiddo iola jones Properties ystod o wasanaethau gosod a rheoli wedi eu teilwra i gyfarfod â’ch anghenion unigol chi. Gallwch fod yn sicr o’r gwasanaeth gorau wedi ei sylfaenu ar ein dealltwriaeth fanwl o’r sector gosod a rheoli preswyl.

 

Mae’r diwydiant hwn wedi ei reoleiddio’n drwm sy’n un rheswm pam fod Landlordiaid yn disgwyl gwasanaeth o’r safon uchaf gan yr Asiant a ddewisir ganddynt.  Ein nôd yn Eiddo iola jones Properties yw darparu gwasanaeth personol a hyblyg sy’n adlewyrchu anghenion amrywiol ein cleientiaid. Er enghraifft, cleient heb amser digonol i sicrhau’r elw gorau ar eu portffolio, landlord dibreswyl sydd angen asiant cwbl ddibyniadwy neu rhyw un sydd yn teimlo yn ansicr gyda’r holl reoliadau llywodraethol a Rhentu Doeth Cymru. Rydym yn ymfalchio mewn darparu gwasanaeth cwbl ddibyniadwy a gwerth rhagorol am arian. Cewch fod ein ffioedd yn hynod gystadleuol, yn deg ac yn dryloyw. Eich buddsoddiad chi yw ein busnes ni.

 

Eiddo iola jones Properties provides a range of letting and management services, tailored to meet your individual needs. You can be assured that we have a detailed understanding of the residential lettings and management sector and will ensure that you are given the best possible service.

 

This industry is heavily regulated which is one reason why Landlords have come to expect extensive knowledge and expertise from the Agency they choose to act in their interests. Our aim at Eiddo iola jones Properties is to provide a personal and flexible service to reflect the diverse needs of our clients. For example, a client who does not have the necessary time to achieve the best return on their portfolio, a non-resident landlord who needs an agent they can fully rely on to manage their property or someone who just feels a little out of their depth to keep up with Rent Smart Wales regulations. We pride ourselves on providing a totally trustworthy and excellent value for money service. Our rates are highly competitive, fair and transparent. Your investment is our business.

 

WHERE TO START?

1. Local Lettings Agent – we would suggest strongly that you find a local agent who is associated to a Trade Association. In choosing us, you have come to the right place - Eiddo iola jones Properties is a member of ARLA, The Property Ombudsman (TPO) plus is registered with Rent Smart and takes the necessity for compliancy very seriously indeed.

 

2. Having chosen your agent, you will be required to prepare your property for rental and below we list a few guidelines to assist you:

The rental market is competitive therefore, in order to obtain the best possible Tenants; it is worth presenting your property in the most effective way. We are more than happy to visit your property for a more detailed appraisal.

• Interior walls should be neutral colours and carpets plain
• Fabrics and Furnishings (if any) should be able to withstand reasonable wear and tear, be of suitable quality and comply with The Furniture and Furnishings Regulation 1988
• Pet odours should be eliminated
• The front door should be clean and the Entrance Hall clear of any obstructions as first impressions are important
• The entire property should be clean and well-aired and the garden tidy.
• If the weather is cold, heating should be turned on and, in warmer conditions, windows opened
• For any other advice contact your Agent

 
3. Other important considerations for Landlords before Letting
• Written consent must be obtained from your Mortgage Provider/Freeholder (if property is leasehold).
• Your Insurance Company must be notified that the property is to be rented out and appropriate insurance obtained for a tenanted property. There are specialist insurance companies who can provide this and we would be happy to assist you.
• The Inland Revenue must also be informed within 6 months of letting your property, flat or apartment in the UK and failure to do so will incur penalties, interest and other consequences. The Inland Revenue are apt to deal harshly with Landlords who do not declare rental income and it is always best to seek advice on tax planning and Capital Gains Tax from a fully qualified Accountant.
• Mail should be redirected with the Post Office.
• Further copies of keys will need to be provided, at least two if you have Management Agents acting for you.
• Utilities such as gas/electricity/water/telephone & Council Tax will have to be transferred to the successful Tenant.
• An Inventory and Check In should be drawn up. This is an important legal document which forms an integral part of the Tenancy Agreement and, as such, it is a false economy to prepare your own in most cases.

 
The Inventory is required whether the property to let is furnished or unfurnished and accurate descriptions of the overall condition of wall/floor coverings, kitchen and bathroom fittings to name but a few are essential. Amounts cannot be withheld from the Tenant’s deposit unless the loss or damage is proved to have been caused by the Tenant.

 

In the event that any dispute concerning loss or damage to your property is not amicably resolved then the matter will be referred to arbitration and the Courts but it should be noted that any judgement will be on the basis of written documentation – the Inventory.

 

A basic inventory report is included in our letting fee, but for an additional cost you may prefer to utilise an independent service which provides a full, detailed report.

 

4. TENANCY – The Housing Act 1988 (amended 1996) has given rise to two types of Tenancy: Assured and Assured Short hold Tenancy as well as the existing Company Tenancy and Contractual Tenancy.

 

A) ASSURED TENANCY

Certain criteria have to be satisfied for a tenancy to qualify for assured status. Assured Tenancy gives the Tenant security of tenure but at a market rent negotiated between the parties. The Landlord may request back possession of the property let on an Assured Tenancy but must obtain a COURT ORDER. This has its advantages but is not as flexible.

 

B) ASSURED SHORTHOLD TENANCY (AST)

This Tenancy is attractive to Landlords as it offers market rents without security of tenure beyond the contractual term and the majority of Tenancies are based on this format. However, certain criteria must first be met:

  a) The Tenant must be an individual
  b) The property must be the Tenant’s main residence/home
  c) The rent cannot exceed £25,000 per annum
  d) The Landlord must not occupy the same property

 

If the property is let under an Assured Short hold Tenancy, the Landlord can issue a Section 21 Notice to guarantee possession provided the term of the Short hold is expired and not less than two months notice has been given by the Landlord stating he requires possession.

If court action is needed, this can be obtained on a number of different grounds against the Tenant.

 

However, it should be noted that is a criminal offence under the Protection from Evictions Act 1977, for a Landlord to threaten or forcibly evict a Tenant from their property.

 

C) COMPANY TENANCY

This is governed by contract law and is not regulated by the Housing Acts of 1988 or 1996. It is used when a Private or Public Limited Company (excluding partnership or sole trader) want to enter into a Tenancy. There is no security of tenure and rental payments are often made on a quarterly basis by prior agreement.

 

D) CONTRACTUAL TENANCY

Contractual Tenancy also falls outside the provisions of the Housing Acts of 1988 and 1996 and is not regulated by statute. It is most commonly used where the rent exceeds £25,000 per annum and both parties have the freedom to contract as they choose, but must then rely solely on the provisions of that Agreement.

5. FURNISHED OR UNFURNISHED - Most Tenants prefer the property to be unfurnished and it has been found that a Tenant is likely to respect the property more if they have their own possessions. Moreover the difference between rent for furnished or unfurnished is negligible and the Landlord remains responsible for the repair of replacement of any furnishings which become broken or worn (unless this was caused by a deliberate act of the Tenant – see Damage Deposits).

 

Outline of our services

MARKETING/FINDING A TENANT – you may decide to instruct your agent to simply market your property and find a Tenant in which case a letting fee will be due once a tenancy agreement has been signed. Our fees are highly competitive, on average around £325 and not exceeding £425. This figure includes what you would expect of this service and probably more!

 

For example,

Full market appraisal and a rental valuation which will be based on the popularity of the area, proximity to transport, rental price of similar property handled and decorative condition to name but a few.

 

The all important marketing of your property including colour brochure, social media, our website and contacting individual applicants on our database.

 

We will arrange viewings, vet prospective Tenants and obtain references, draw up contracts and advise you on your Safety and Repairs obligations (see LEGAL DUTY OF CARE). We utilise the services of an independent referencing company and we cover the cost of up to two Tenant/Guarantor references. Any extra references will come at an additional cost to the Landlord.

 

A valid EPC is required before a tenancy begins. This will require the service of an independent provider at an additional cost to the Landlord. We can arrange this on your behalf for a small administration fee. If the rating for your property is lower than E, we can help you take the necessary steps to ensure your property is compliant.

 

We provide all the required legal documentation - the Terms of Business which forms the contact between us as your agent and you as our client and the tenancy agreement which will be signed by you and the Tenant. This stage will include a welcome pack and check-in to ensure the Tenancy gets off to a good start.

 

COLLECTION OF RENT – this is usually done on a calendar monthly basis and is forwarded to the Landlord via any previously approved method after any agreed deductions have been made for commission, contractors etc. Some Landlords may choose this service which also includes the registration of the security deposit This is paid by the Tenant and is usually equivalent to one month’s rent. It will be registered in a government authorised Deposit Protection Scheme, details of which will be passed on to the Tenant within 30 days. Upon vacation of your property, there will be a re-inspection and any refunds will be made within a maximum of 28 days, provided that there are no disputes and all utility accounts have been settled.

 

FULL MANAGEMENT - The costs of everyday repairs and maintenance are the responsibility of the Landlord but, if we are instructed to manage your property on your behalf, we will pay the contractor according to the Terms of Business between ourselves and you as Landlord. We can also organise quotes for approval on any major repair as this becomes apparent.

 

Under the LANDLORD AND TENANT ACT 1985, Landlords are responsible for repair of the structure and exterior of the property, together with installations for the supply of gas, electricity, water and sanitation.

 

If the property is not in a good state of repair at the commencement of the Tenancy, the Tenant has the right to insist that repairs are carried out and, in the event that the damage is serious, the Tenant will be entitled to consider the letting as terminated as the Landlord will be in breach of their obligations

 

LEGAL DUTY OF CARE – Under common law, the Landlord must ensure that properties to let are safe and failure to comply with Safety Legislation is considered a criminal offence resulting in legal action and prosecution.

 

As your Managing Agent, we can carry out safety checks upon your request, deducting the cost as instructed.

 

Gas – (The Gas Safety (Installation & Use) Regulations 1994 (amended 1998) – the Landlord must maintain gas installations and all gas appliances through annual inspections and safety checks carried out by a Gas Safe registered engineer and a copy of the Current Inspection Certificate must be left at the property. Adequate Carbon Monoxide detectors must be in place.

 
Electricity - (The Electrical Equipment (Safety) Regulations 1994 & Electricity at Works Regulations 1989-  the Landlord must ensure that all mains voltage household electrical appliances and equipment is tested and safe to use. Any non-repairable items must be replaced and removed.

 
An NICEIC or similarly qualified electrical engineer must carry out these tests on an annual basis and we would also recommend this is done upon change of Tenancy.

 
All operating instructions must be left in the property for the Tenant’s benefit.

 
Furniture and Furnishings – The Furniture and Furnishings (Fire) (Safety)Regulations 1988 (amended 1989 & 1993)  - Soft furnishings (such as mattresses, settees, bed bases, cushions and padded headboards) must meet fire resistance standards and bear a permanent  label confirming this. If compliance cannot be proved, the item must be removed and replaced.

 
Smoke Detectors – As a bare minimum smoke detectors must be fitted on each floor and should be mains wired and interlinked. All batteries must be adequately replenished.

 

NB: The penalty for failure to comply with statutory safety legislation is currently a maximum of £5,000 and/or 6 months imprisonment for each offence. This can be harsher in the case of injury or fatality.

 

The above is only a guide to the legal safety requirements and should you have any further enquiries, we would recommend that you contact a qualified solicitor who will be able to verify these in full.

 

In addition to the above this service includes much more - for example:
 
• Arranging transfer of Utilities to Tenant’s name and establishing Council Tax and Water Rates in Tenant’s name
• Advising on compliance with Safety Regulations for Gas/Electricity supplies etc
• Arranging annual gas safety checks (clarified in Terms of Business)
• Periodic inspection of the property and reporting of any problems
• Obtaining competitive quotations and, upon approval, arranging for necessary repairs/maintenance to be carried out
• Contacting the Tenant and arranging for renewals and/or check-out as necessary

 

OVERSEAS LANDLORDS – you are considered an overseas Landlord if you live abroad or go to work abroad for lengthy periods of time.

It is important to firstly note that Inland Revenue regulations apply even if you are a non-UK resident. Moreover, non-resident Landlords must apply to the Inland Revenue Financial Intermediaries Claims Office (FICO) for authorisation (by way of an exemption certificate) to receive payment of property rental “gross”, that is without deduction of Income Tax by the letting agent or Tenant as required by law.

 

NB: The above is merely a guideline and for fully qualified advice, you should contact an appropriate Accountant or Tax Expert.