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A GUIDE TO LETTING
The Fine & Country residential lettings guide Whether you just want to find a tenant, or need a professional expert to manage the entire lettings experience for you, a Fine & Country lettings agent is an invaluable resource for landlords.
Our dedication to lettings and clients allows you to have total confidence and peace of mind when you choose to work with us and will make being a landlord as stress free as possible.
Our agents are not only adept at finding you ideal tenants, but will be able to tell you how to present your property and make it appealing. They will also ensure it is safe for renting out, as well as explain legalities and your responsibilities as a landlord. We can offer advice on the local lettings market, plan with you what kind of management service suits your needs and how you can fully maximise this financial venture. We know letting a property for the first time can be a daunting experience, after all it is an undertaking that involves a valuable investment for you. This is why Fine & Country agents have invested time and research in understanding the process completely and constantly keep pace with any changes in the rental market.
Guide
Buy to let: an investment worth serious consideration As property experts, Fine & Country agents are perfectly suited to advise on what makes the right type of property to make a sound and profitable investment.
As with buying a property for use as your own residence, purchasing the correct property for rental purposes is vital if you are to extract the maximum investment and capital gain.
Property has always been regarded as one of the safest investments available to those with the means and funds available. Property is an asset that is essential, durable, easy to value and has historically delivered exceptional returns compared to other investment opportunities. In fact, the value of property has, on average, doubled every 10 years over the last half a century. As regards the lettings market, this sector has become more appealing to investors thanks to developments such as the proliferation of buy-to-let mortgages, changes to landlords’ rights and an overall increased demand for rental properties. As property experts, Fine & Country agents are perfectly placed to offer guidance on what makes the right type of property to buy to let, they can also offer advice on location, rental demand in your area and historical rental rates. All of which is essential knowledge, if you are to make a sound and profitable investment.
Buy to let
Starting the lettings process
The service offered by Fine & Country agents will greatly depend on what type of landlord you want to be.
You should give careful thought to the kind of tenants you want, or don’t want. Are you happy for families to live in your property, or would you prefer only young professionals? Would you consider a long-term tenant or be happy with new occupiers every six months?
The service offered by Fine & Country agents will greatly depend on what type of landlord you want to be, from the basic request of finding tenants, to the addition of rental collection services, all the way up to a fully managed service, where the agent themselves acts as a buffer between you and your tenants and looks after the majority of the process. You should also give careful thought to the kind of tenants you want, or don’t want. Are you happy for families to live in your property or would you prefer only young professionals? Would you consider a long-term tenant or be happy with new occupiers every six months? Meet with a Fine & Country agent for a lettings appraisal and they will be able to cater for all your needs, as well as helping you to decide, right from the start, what kind of service you require.
Process
Starting the lettings process
Once you have decided to let a property, you will need to consider whether you will offer it as furnished or unfurnished.
Unfurnished properties will be attractive to long-term tenants as they also often look to bring their own items and would not want to spend frequently on removal costs. A furnished property is going to be attractive to people who know that they can move in immediately or cannot afford to bring their own furniture with them.
Unfurnished While not completely empty, an unfurnished home will attract tenants who already have their own furniture and do not want to pay extra for putting it in storage. Although unfurnished, it is highly recommended you instruct your agent to organise an inventory and include the basics expected in a property such as carpets, electrical white goods and light fittings. Anything included by you will be your responsibility to repair or replace. Furnished If your property is marketed as furnished, most potential tenants would expect to find the majority of furniture and electrical appliances that they would need for everyday living, in the property. With a furnished property you should also include an inventory in the contract you sign with a tenant. This will list the property’s contents and condition from the start date of the tenancy and will help avoid disputes at its conclusion.
Process
Starting the lettings process
Whatever property you are planning to rent out, you must make it attractive and enticing to potential tenants.
General upkeep is normally the responsibility of the tenant, although if your property has a rather large, ornate garden it is advisable to use a professional gardener to take care of the grounds and incorporate the cost of the gardening, into the rent.
Furnished continued If you are going to offer a furnished property, you need to factor in buying the items in the first place and then covering renewal costs. You must also ensure gas appliances, furniture and soft furnishings conform to appropriate fire and safety guidelines. Presentation and decoration You will need to spend time and money decorating your property to a good standard. It is worth doing all the work right at the start, rather than when tenants move in and problems subsequently arise.
Process
Finding tenants Your Fine & Country agent will work with you to understand who you will and won’t accept in your property and ensure that any specific conditions are understood by any potential tenants and are included in the rental agreement.
One of the most important parts of the lettings process is making sure you have the right tenants in your property. Fine & Country knows this to be a factor that will ensure you have security and that the landlord/tenant relationship will be a content one.
We will vet all prospective tenants before an agreement is signed using stringent referencing procedures and background checks, in order to find your perfect tenant. Fine & Country agents have access to a huge and powerful suite of marketing techniques which are unrivalled in the industry and will provide maximum exposure for your property. Prospective tenants who are already registered on our extensive database will be contacted by phone or email, your property will also be added to our window displays and feature regularly in the local press to ensure continued enquiries. With the majority of property searches now taking place online, your property will feature on the comprehensive and state-of-the-art Fine & Country website, which has both interactive and intelligent search facilities. Furthermore, the property portals: Rightmove, PrimeLocation and Zoopla are used to expand Fine & Country’s online reach, with over 13 million unique visitors per month using these sites.
Tenants
The tenancy agreement To protect you and ensure all parties know their legal standing, it is essential to have a comprehensive tenancy agreement and detailed inventory drawn up prior to each tenancy.
Tenancy agreements are normally for an initial term of six months, or a year. Shorter or longer term tenancies can be negotiated dependant on individual landlords’ and tenants’ circumstances.
Fine & Country uses a tenancy agreement which has been carefully designed to protect your rights to possession, to help control the tenant’s activities, to ensure that you have redress if your property is not looked after carefully and to comply with standard mortgage lender requirements. Most tenancies are governed by The Housing Act and it is very likely your property will be covered by an Assured Shorthold Tenancy (AST).
Agreement
The tenancy agreement As legislation is now weighted heavily in the tenant’s favour, these documents are essential in protecting the landlord’s interests.
The tenant is responsible for the cost of rectifying any damage, over and above what is considered to be fair wear and tear, caused by them at the property. This cost is deducted from the tenant’s deposit.
Inventory/Schedule of condition Another essential document that you must have prepared and ready for your tenants to sign is an independent inventory of the property, which Fine & Country can prepare for you. This will list the property’s contents and condition from the start date of the tenancy and will help avoid disputes, when the property is inspected at the end of the tenancy and any damage or deterioration to its condition is noted. Council Tax and utility bills In addition to the rent, tenants pay for Council Tax, gas, electricity, water and telephone bills. Depending on the level of service you agree with Fine & Country, your agent can arrange for meter readings when a tenancy begins and for Council Tax to be set up in the tenant’s name.
Agreement
The tenancy agreement
As part of our security checks on your behalf, we ensure funds for the deposit are cleared before the tenant can move in.
Tenancy Deposit Protection has been introduced to provide an independent and impartial method of resolving any differences between landlords and tenants at the end of a tenancy and naturally, Fine & Country agents adhere to these rules.
The Tenancy Deposit Scheme As part of the Housing Act the Government introduced tenancy deposit protection for all Assured Shorthold Tenancies in England and Wales where a deposit is taken. It states that all deposits now have to be registered with a Government approved scheme within 30 calendar days of receipt. Mortgage lender requirements If you are intending to rent out your property, you must first inform your mortgage provider. It is quite likely you will have to change to a buy to let mortgage. Rental payments and deposit When your tenant signs the agreement, it is usual for your Fine & Country agent to collect the first month’s rent and the deposit. The deposit amount varies, but is usually equivalent to six weeks’ rent.
Agreement
About Fine & Country
Fine & Country is a multi-award winning network of estate agents specialising in the marketing, selling and letting of luxury and prestige properties.
Based in 300 locations worldwide including a flagship office on London’s prestigious Park Lane, Fine & Country has grown into a global brand that is recognised and admired for its local expertise, international reputation and unrivalled professionalism.
Every Fine & Country agent is dedicated to offering clients the very best service available in the industry, tailoring it specifically to your needs. We understand that exclusive properties require a bespoke approach to marketing and we take instruction to let your property as a privilege, showcasing it with the most effective, cutting edge promotional tools and techniques available. Visit your local Fine & Country branch and discover how the expert team with its in-depth knowledge and full range of marketing methods will be able to fulfil all your lettings requirements in the swiftest time possible.
About
The tenancy agreement
The landlord’s obligations are clearly determined in Section 11 of the Landlord and Tenant Act 1985.
As landlords, you must ensure you have adequate buildings insurance cover in place. As for contents, tenants are responsible for insuring their own personal belongings and furniture.
Landlord’s obligations You will be responsible for maintaining the structure and exterior of your property, heating and plumbing installations and dealing with other routine repairs. If your property is leasehold, you will be responsible for paying the service charge and ground rent. Tenant’s obligations The tenant has a duty to take proper care of your property and use it in a responsible way, pay the rent and keep to the terms of the tenancy agreement. Leasehold properties If your property is leasehold, your lease will specify whether or not it is necessary to obtain permission to sub-let from the freehold company or managing agent. You must clarify the situation before letting your property, as some leases contain restrictions.
Agreement
Safety regulations
It is vital that all gas appliances are checked and certified safe by a professional engineer (and then checked every 12 months).
The key safety regulations you must adhere to as a landlord are: • Gas Safety (Installation and Use) Regulations
You will be issued with Gas Safety Certificate and it is a legal requirement that you also provide your tenant with a copy of the certificate. If you are offering the property as furnished, the furniture must conform to appropriate fire and safety guidelines. Any electrical equipment that you provide for your tenants should be checked and certified on a regular basis.* Smoke Detectors
• Furniture and Furnishings (Fire) (Safety) Regulations
Any new home built after June 1992 must be fitted with mains operated
• The Electrical Equipment (Safety Regulations)
Energy Performance Certificates (EPC)
smoke detectors.
These certificates reflect the energy efficiency of a property and are valid for 10 years. As a landlord you will need to provide an EPC each time you let.
*Please note, this information is intended only as a guide for landlords and should in no way constitute a detailed interpretation of the complete Regulations. Landlords should note that the maximum penalty for non-compliance with these Regulations is a fine of £5,000 or six months imprisonment.
Safety
Landlord information If your rental property is based in the UK, but your usual place of residence is outside of the UK, you will need to talk to your Fine & Country letting agent about the taxation situation on rental income.
Having the correct types and levels of insurance cover is vital for landlords and your Fine & Country letting agent can guide you through this process.
Landlord Insurance Specific landlord insurance is highly recommended, both for first-time landlords and for more experienced property investors. Unlike a regular buildings insurance policy, it may also include cover for loss of rent due to fire, flooding or accidental damage by the tenants, protecting your investment throughout the tenancy. Rental Protection Insurance To provide you with the ultimate peace of mind that your property and investment is being protected to the fullest extent, a rental guarantee policy can be arranged. The policy would act as a safeguard to pay the agreed rental payments to the landlord in the unlikely event that a tenant defaulted, as well as covering the legal costs to regain possession.
Advice
Why use a professional letting agent? Whether you just want to find a tenant, or need a professional expert to manage the entire lettings process for you, using a professional lettings agent is an invaluable resource for landlords.
1. Advice – Whether a first-time landlord or an experienced
4. Property Viewings – Letting agents will conduct the property
property investor, a letting agent can offer in-depth specific advice on
viewings with suitable candidates, ensuring that the benefits of your
all stages of letting and managing your property. From presentation,
property are professionally presented and all key information is
local knowledge, property valuation and legal requirements, a letting
communicated effectively.
agent will guide you through the entire process. 5. Tenant Selection – A letting agent has both the experience and the access 2. Professional Valuation – Letting agents are best placed to
to modern technologies to ensure that a tenant’s income, employment,
provide the most comprehensive knowledge of the local area,
financial status and previous tenancies are extensively analysed and verified,
rental demand, tenant types and potential rental values, so you
providing the necessary protection against adverse history and
can be sure you are maximising the return on your investment.
future management problems.
3. Marketing – From property particulars, photographs and floor
6. Formal Agreements – It is vital that a professional tenancy
plans, or access to the vast network of potential tenants through print
agreement formalises the contract between you and the tenant to
and online marketing, a letting agent can provide you with the most
legally protect your financial investment. A letting agent has the
effective modern techniques to maximise quality marketing exposure.
experience and knowledge to administer this process so you have
Expertise
Why use a professional letting agent? You can be confident that your property investment will be treated and managed with the upmost professionalism, dedication and expertise available in the industry.
the peace of mind that your interests are protected and that all legal
9. Management Service – A letting agent has the expertise and
obligations of both parties are clearly stipulated and adhered to.
knowledge to manage the tenancy throughout its term, resolving maintenance issues, collecting and distributing rental payments,
7. Protecting your investment – In order to protect the condition of
arranging inspections and ensuring your property is well looked after
your property, an independent inventory acts as a vital point of
and returned in an excellent condition.
reference to ensure disputes with tenants do not arise.The contents and condition will be photographed and documented, providing an
10. Peace of Mind – All reputable, professional letting agents are
easy illustration of condition changes throughout the tenancy, allowing
regulated by the Association of Residential Letting Agents (ARLA)
a letting agent to successfully administer any disputes.
or the Royal Institute of Chartered Surveyors (RICS). With accreditation from one of these professional bodies, you can be
8. Legal Compliance – A letting agent can advise on all aspects of
confident that your property investment will be treated and managed
administering legal compliance when letting a property. From gas
with the highest professionalism, dedication and expertise available in
and electrical safety regulations, tenancy deposit schemes and
the industry.
changes to relevant housing legislation, a letting agent is best placed to provide comprehensive guidance.
Expertise
Fine & Country’s commitment to you Regular ARLA training is carried out to ensure appropriate staff are up-to-date with the varied legislation that governs residential lettings.
Every Fine & Country agent is an experienced professional, whilst at the same time being an expert on their local area, devoted to providing you with an excellent level of service.
Fine & Country is extremely committed to ensuring that its staff are equipped to do the best job possible for its clients, this is reflected in the fact that a number of our senior staff are members of ARLA (Association of Residential Lettings Agents). Regular ARLA training is carried out to ensure appropriate staff are up-to-date with the varied legislation that governs residential lettings. The Property Ombudsman Scheme All Fine & Country agents are members of The Property Ombudsman Scheme. The scheme provides a free, fair and independent service for dealing with unresolved disputes between member agents and tenants or landlords of residential property in the UK. The Ombudsman is totally independent of the member agents and reports directly to the Ombudsman council, which has a majority of non-industry members.
Commitment
Effective Marketing Instruct a Fine & Country Agent, then sit back and relax as you watch a comprehensive marketing strategy spring into action on your behalf.
Fine & Country are renowned for intelligent and creative online and offline marketing and will present your property professionally to the widest possible marketplace, enhancing your chances of letting your property in the shortest time.
Offline Marketing • PR and Media Centre • Advertising nationally and locally • International showroom in Park Lane, Mayfair, London W1 • Fine & Country regional, national and international publications • Lifestyle property brochures • Direct mailing and canvassing cards • Fine & Country ‘To Let’ boards Online Marketing • Fine & Country international, national and local websites • Social media (Facebook, YouTube, Twitter) • Fine & Country TV • Property portal syndication (Rightmove, PrimeLocation, Zoopla) • iPad and iPhone applications • State-of-the-art referral system
Marketing
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