Letting your property
THE MARKET PLACE Since the 1988 Housing Act and the introduction of the Assured Shorthold Tenancy (AST) the UK rental market has gone from strength to strength. This has been powered by the “Buy to Let� investor, increased flexibility from lenders, increased demand from both home-grown and overseas Tenants and better legislation to protect Landlords. For many responsible and reliable people, renting now represents a realistic housing choice offering them the flexibility to move when required in today’s ever changing world. Providing the tenancy is handled correctly, Landlords have the freedom to charge a market rent and can be sure of regaining possession of their property if required. As the UK continues to create closer ties with Europe and more companies move their staff around the world, so the private rented sector will continue to grow. All the major western economies have a thriving private rented sector.
OUR COMMITMENT TO YOU Letting your property need not be a hazardous or complicated operation, but with the relatively complex legislation involved, it is important to appoint an agent who fully understands the market and the associated legalities. At Granville Residential, we believe in specialists. Therefore, you will only deal with a specialist letting agent when marketing your property to let. Alternatively, if you have a property for sale this will be handled by one of our residential sales specialists. All our letting specialists are required to attend ongoing training to ensure that they can advise you on all aspects of property rental, from initial marketing strategy to taxation and Tenant departure. Granville Residential was formed in 1991 and can advise on all aspects of property sales and rental. We are members of the Association of Residential Letting Agents (ARLA), National Association of Estate Agents (NAEA), Ombudsman for Estate Agents (OEA) and The Dispute Service (TDS) for Tenant deposits. The founder of the company, Greg Jones, is a fellow of ARLA and the NAEA.
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Tenancy Agreements
OUR SERVICE Rental Assessment and Advice If you are considering letting out your property, the first step will be to call a reputable specialist letting agent. No charge should be made for this visit as this is purely to make introductions, assess the property’s potential rental value and discuss the various levels of service available. Granville Residential has considerable experience and expertise in the local rental market and consequently can offer accurate assessment of your property’s rental prospects. We will not only advise on the current market conditions and offer comparables, but will also discuss other factors, including how best to present your property to maximise returns etc. Ultimately, it is better to be realistic in rental assessment and have immediate response, than be unrealistic and have no response at all. With rental, time really is money!
Mortgage, Freehold and Leasehold Generally, Landlords will be required to seek permission from their lenders if a mortgage is outstanding on the property. Most lenders will be comfortable with the prospect of letting the property out. If the property is leasehold, or if you have a superior landlord, you will probably be required to obtain their consent. Consent may require a copy of the proposed tenancy agreement which can be forwarded on request. Please ensure that consent has been obtained from all interested parties prior to the start of the tenancy, as failure to do so may prejudice the tenancy.
Marketing the Property As soon as you instruct Granville Residential to start marketing your property, we shall prepare the relevant particulars. This will include descriptions and features of the property, energy performance certification (see page 4) and several colour photographs. The property will be listed in the local press, feature in our prominent town centre window displays and be notified to those prospective Tenants, corporations and relocation agents already on our extensive register. Increasingly, the Internet is becoming one of our most important marketing tools as our Tenants come from all over the world. With this in mind, Granville Residential spares no expense and will market your property through all of the leading websites and national newspaper websites. We also have our own website www.grl.co.uk, which will show descriptions, features, maps and multiple photographs of your property and has an auto-update function to keep prospective Tenants informed as soon as your property comes on to the market. We believe that no other local agency can offer the level of Internet coverage afforded by Granville Residential.
When letting to a private individual, an Assured Shorthold Tenancy (AST) is advised. The Assured Shorthold Tenancy was introduced under the 1988 Housing Act and has revolutionised the private rented sector in England and Wales. Providing certain conditions have been met, Landlords are now guaranteed repossession of their property if required. This means that Landlords can now let their property with confidence. Properties let to companies, tenancies where the rent exceeds £25,000 per annum, and certain other tenancies are covered by contract law and cannot be Assured Shorthold Tenancies. All tenancy agreements supplied by Granville Residential are constantly updated to ensure they comply with any legislative changes. Our charge for the preparation of a tenancy agreement is £60.00.
Collection of First Months Rent and Deposit Usually, Granville Residential will collect the first months rent and a refundable deposit equivalent to one and a half months rent. We will deduct our fees and any other costs from these funds and forward the balance to the Landlord within 5 working days of the tenancy commencement. Unless the property is managed, the Landlord will be responsible for the deposit administration, protection and return at the end of the tenancy.
Tenancy Deposit Scheme The Government has introduced legislation controlling how Tenants’ deposits are held and administered in the event of a dispute. The legislation only applies to Assured Shorthold Tenancies. The penalties for non-compliance by Landlords are high and can result in you not being able to regain possession of the property using a Section 21 notice and a fine equivalent to three times the deposit (which is awarded to the Tenant). The legislation requires that deposits are registered or lodged with one of the three Government approved schemes. The schemes broadly fall into three categories, which are two insurance based schemes and one custodial scheme. All the schemes operate in slightly different ways, although only the Tenancy Deposit Solutions scheme allows the Landlord to retain the deposit. Landlords opting for property management will have their AST deposits automatically protected with The Dispute Service. All fees for the Tenancy Deposit Scheme are including VAT, are subject to change and can be offset against rental income. Landlords are urged to access the websites listed or contact the scheme administrators below for full information as this document is only a guide and it is the Landlord’s responsibility to comply.
The Dispute Service www.thedisputeservice.co.uk—Tel: 0845 226 7837 Granville Residential is an approved Agent and we are able to retain the deposit on your behalf in our fully bonded client account. No interest is paid on the deposits held on account. We are legally required to register the deposit with The Dispute Service and notify all parties as to where the deposit is held and abide by its stringent rules and code of conduct. At the end of the tenancy, both the Landlord and Tenant will need to agree any deductions from the deposit and write to us advising of any settlement. If no agreed settlement is reached within 30 days of the tenancy end, then the matter and the disputed amount will be referred to the Independent Case Examiner (ICE) who will
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Inventory
adjudicate. A £40.85 charge will be made for each deposit registered and subsequent renewal. Therefore, should you wish Granville Residential to hold and register the deposit, you will need to notify us in writing or by ticking the “TDS Deposit Retention” box on our Letting Instruction Form. We shall then register the Deposit collected from the Tenant on your behalf. Should a deposit dispute be referred to the The Dispute Service for adjudication a charge of £105.00 will be payable by the Landlord.
The Deposit Protection Service www.depositprotection.com—Tel: 0844 980 0290 In this scheme, the Landlord must send the full deposit to the Custodial Scheme Administrator and advise the Tenant of the scheme details within 14 days of the Tenant paying the deposit. The interest accrued by deposits in the scheme will be used to pay for the running of the scheme, so no charges are levied to either party. At the end of the tenancy, if the Landlord and Tenant agree how the deposit should be divided, then the scheme will return the deposit in the way agreed. In the event of a dispute the scheme will hold the disputed amount until the dispute resolution service or courts decide what is fair. Please contact The Deposit Protection Service directly for further and updated information.
Tenancy Deposit Solutions www.mydeposits.co.uk—Tel: 0844 980 0290 This scheme is operated by the National Landlords Association and Hamilton Fraser Insurance. The Landlord is required to pay a oneoff joining fee of £58.75 and an annual renewal fee of £14.70. The Landlord is then able to register and retain the deposit for a further £30.00 deposit protection fee. The deposit must be registered with the scheme within 14 days of the deposit payment from the Tenant. In the event of a dispute at the end of the term, the Landlord must send the disputed amount to Tenancy Deposit Solutions, who will try to resolve the dispute by offering an independent, impartial and evidence-based Alternative Dispute Resolution (ADR) service as an alternative to the courts. Please contact Tenancy Deposit Solutions directly for further and updated information.
We always recommend that a complete inventory be compiled before a tenancy commences. We can recommend an independent Inventory Clerk whom, if needs be, can be an unbiased arbitrator in the event of a dispute. The Landlord pays for the clerk to produce a detailed bound document listing the contents and condition of the property (“the make”) and for the clerk to sign over the condition of the property to the Tenant (“the check in”). On the Tenant’s departure at the end of the tenancy, the Landlord instructs the inventory clerk, at the Tenant’s expense, to revisit the property and “check-out” the Tenant. The clerk will then produce a “tenancy termination report” and it is this document that is used to assess any damage made to the property. The termination report will prove invaluable if a Landlord has to make a deposit claim through one of the Tenancy Deposit Schemes. If you would like us to book an independent Inventory make and check in on your behalf just tick the appropriate box on our Letting Instruction Form. Landlords can create their own inventory, providing they are thoroughly detailed and the Tenant has signed to acknowledge the accuracy of the report. Start utility meter readings should also be taken at this time and forwarded to Granville Residential for transfer.
ARLA Licensed Agent (Client’s Money Protection Scheme) Granville Residential is fully bonded by the Association of Residential Letting Agents (ARLA), which is the largest regulatory body covering property letting and management in the UK. We safeguard your money through a client money protection scheme and we also maintain professional indemnity insurance.
The Property Ombudsman Granville Residential adheres to the strict codes of practice and recourse laid down by the Property Ombudsman. Although companies are not legally required to join the scheme, Granville Residential are full members for both sales and letting.
National Approved Letting Scheme (NALS) Granville Residential is a full member of the government initiative known as the National Approved Letting Scheme (NALS). The scheme is only open to approved members of a regulatory body (ARLA, ISVA, NAEA, RICS) who must have fidelity bonding, indemnity insurance and a formal complaints procedure. The scheme is designed to help Landlords let their property with confidence, safe in the knowledge that their chosen agent operates to a high standard of professionalism and integrity.
Energy Performance Certificates (EPC) It is now a legal requirement that all property offered for rent has an Energy Performance Certificate. This means that a qualified Domestic Energy Assessor will visit the property and assess the current energy usage and carbon emissions. The Assessor may also make suggestions, which are not mandatory, as to any improvements that could be made to the property to reduce the carbon emissions and improve the energy efficiency. Granville Residential have our own team of fully qualified domestic energy assessors and can arrange an EPC quickly and efficiently which will ensure that marketing can begin without delay. Unless your property is exceptionally large an EPC will cost £99. If you would like us to arrange the EPC just tick the Energy Performance Certificate box on our Letting Instruction Form.
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Utilities & Council Tax Generally, the Tenant will pay for the gas, electricity, water, oil, council tax, television licence and telephone. Please advise us of your utility suppliers at the start of the tenancy. If an independent inventory clerk is appointed, they will advise us of start meter readings so we may notify the utility companies. If you choose not to use the services of an independent clerk, you can notify us directly of meter readings and we shall advise the utility companies. Telecom companies will not take instructions from third parties on transfer of account and Council Tax registration is the responsibility of the property occupier. Oil tanks should be filled at the start of the tenancy and left full by the outgoing Tenant.
Post Please advise the post office of your new address and arrange mail forwarding.
Building & Contents Insurance Landlords are required to maintain a fully comprehensive policy of insurance on the building. With leasehold flats and apartments this is usually included in the service charge (which is payable by the Landlord). Landlords are well advised to insure the contents of the property, even if this just extends to carpets, curtains and white goods, as contents insurance usually includes public liability insurance. On fully furnished property, all contents should be insured to include accidental damage. Please contact the office for details of specialist rental property insurers.
Legal Protection and Rent Insurance Such policies are available, so please contact the office for details.
BUY-TO-LET AND INVESTMENT PROPERTY
Granville Residential have successfully conducted many thousands of tenancies and currently let a large portfolio of property on behalf of our clients. Therefore, we have an excellent understanding of which properties will appeal to prospective Tenants and can offer Landlords invaluable guidance as to correct rental amounts, yields, void-risks etc. We also have a great deal of knowledge on local developments and can perhaps spot any pitfalls that may not be immediately apparent. Should you have an investment property in mind, we can give you up to date comparisons and opinions on suitability. Occasionally, we have established Landlords who decide to dispose of their investment property for one reason or another and this can be an excellent opportunity for Landlords wishing to add to their portfolio. Often the Tenant will be willing to stay on and the property will be known to us so we can offer a useful history. Should the investor Landlord wish to buy a property with the Tenant remaining in place, then rent will be obtained from day one. Please contact our sales division to see if we have any suitable possibilities. As we hope that you will choose to instruct Granville Residential to let your property, we do not charge for Investment Property advice.
Other Landlord Considerations Unfurnished or Furnished? - Contents Checklist Whether a property should be let furnished or unfurnished largely depends on the prevailing conditions at the time of going to market and the Landlord’s circumstances. Strangely, rental prices are about the same whether the property is let furnished or unfurnished, although there are some tax benefits to letting furnished. There is no longer a legal difference in letting the property with or without furniture for the purposes of repossession, if required. We have a long established reputation for letting quality rental property of all sizes, ranging from one bedroom flats to large country houses. In order to maintain this reputation and to reassure our contacts in relocation agencies and large corporations that property offered through Granville Residential is a of a good quality, we must insist that the following basic requirements are met. The property should be handed over as clean as possible, with any carpets cleaned and gardens seasonally tidy. If an inventory clerk has been appointed, they will be very thorough in their assessment of the condition and cleanliness of the property. All repairs should be carried out prior to the tenancy commencement and the property should be presented in neutral tones if possible. If the tenant is required to maintain the garden, then suitable equipment should be left. The list below represents the minimum requirements for a typical three bedroom house. Unfurnished Property should ideally comprise of: Oven and Hob Carpets and Curtains
Washer/Dryer Light Fittings
Fridge/Freezer
Dishwasher
In addition, Furnished property should comprise of:
Kitchen Dinner Service Cooking Utensils Cutlery and Crockery Saucepans Dustpan and Brush Iron & Board Vacuum Cleaner
Lounge/Dining Room Three Piece Suite Coffee Table Dining Table and four chairs Sideboard Place mats and coasters General pictures
Bedrooms Double Bed Wardrobe Pillows and Duvet Bedside Cabinet Chest of drawers
Bathroom Good shower Bathroom Cabinet Mirror Towel Rail Toilet roll holder
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TAXATION Granville Residential are not tax advisors or accountants, so specialist advice should be sought. However, many expenses arising from the letting of property can usually be offset against your rental income such as: » Agents fees and commissions » Building and Contents insurance The rental market is increasingly competitive and Tenants are looking for a high standard of presentation and provision. Properties that are well equipped and presented will always prove to be more popular, and will be let more quickly than those that are not. Should you require any advice on how to equip or present your property please do not hesitate to call a member of our specialist letting team who will be delighted to help.
» VAT » Depreciation allowance or Capital Expenditure allowance » Maintenance and Repair of the property » Service Charges » Maintenance and Repair of equipment supplied with the property » Ground rent » Internal and external decoration
LANDLORD SAFETY REGULATIONS In recent years, new regulations have been introduced to improve safety in rented residential accommodation. All Landlords who own property which is let need to be aware of the implications of the legislation. The penalties for non-compliance are severe and can include a substantial fine and/or imprisonment.
The Gas Safety (Installation and Use) Regulations 1994 and subsequent amendments. All gas appliances need to be regularly maintained, so that they run safely and reliably and should only be worked on by a qualified GASsafe gas engineer. A GASsafe Landlord’s Gas Safety Certificate needs to be obtained on an annual basis and supplied to the Tenant. A record of all work carried out and copy certificates should also be kept.
The Fire and Furnishings (Fire) (Safety) Regulations 1988 and subsequent amendments. All Landlords letting residential property will be expected to ensure that all upholstered furniture complies with the Fire and Furnishings (Fire) (Safety) Regulations 1988 and subsequent amendments. In general this means that all upholstered articles (i.e. beds, sofas, armchairs, seat cushions, headboards etc) must have fire resistant filling which has passed the “cigarette test” and displays the appropriate labels.
The Electrical Equipment (Safety) Regulation and subsequent amendments. All electrical equipment and appliances supplied with a rental property need to be safe. Although there is currently no statutory annual testing interval or certification required, all equipment should be checked by a suitably qualified engineer. Where the safe use of any equipment or appliance relies upon the user being aware of any particular characteristic, suitable information or instruction booklets should be provided. Landlords should be able to prove their property is electrically safe.
Smoke Alarms Smoke alarms should be installed on each storey of a rental property. It is the Landlords responsibility to comply with the above at all times.
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» Management Fees » Expenses in connection with visiting the property » Energy Performance Certificates » Gas and Electrical Safety Certificates
PROPERTY MANAGEMENT The letting team at Granville Residential are true specialist letting agents and we dedicate all our time to finding a suitable Tenant as quickly and efficiently as possible. For Landlords who decide not to manage their own property, we can appoint a specialist Property Manager who will be responsible for the day to day management, maintenance, routine inspection and repair of the property. The Property Manager’s sole responsibility is to look after your property – not let it. By doing so, they are not side-tracked or diverted with viewings and marketing from the all important task of looking after your property. If required and before the tenancy commences, the manager can visit you at the property and gain a full understanding of the property and its central heating, appliances etc. If you wish to take advantage of Property Management just tick the appropriate box on our Letting Instruction Form. The service is as follows: Rent Collection – Rent is collected from the Tenant and paid into a nominated UK bank account on a pre-determined settlement date of either the 1st of 15th of the month, dependent on the commencement date of the tenancy. The payments will be net of any maintenance deductions, etc. Statements – A detailed statement will be provided on a monthly basis showing all income, retentions and expenditure. Emergency Repairs – The Property Manager has 24-hour emergency repair cover. Maintenance – The Property Manager will attend to routine matters of repair and maintenance up to £250 on any one item. Unless it is an absolute emergency, prior authority will be sought for works likely to exceed £250. No loading or additional administration fees are made for any routine repairs or maintenance work.
FEES Introduction of Tenant a) 10% of the rent reserved under the terms of the tenancy agreement, up to a maximum of one year. This fee is payable in advance and will be deducted from funds paid by the Tenant. Should the total amount of fees due exceed the funds collected from the Tenant, then the Landlord will be invoiced directly for the balance due. Such invoices are payable within 7 days of the tenancy start date. b) After the initial twelve months, whether negotiated by us or not, should the Tenant remain in the property a renewal fee of 5% of the rent reserved for extended term will be payable. c) Should a Tenant or any other party express and interest in purchasing the property and you are willing to sell, our specialist sales team will be delighted to deal with the negotiation of the sale to ensure the best possible price is achieved for you and the transaction is completed smoothly and to your satisfaction. We offer a discounted sales fee of 1% plus VAT on the sale price payable on completion. d) The Landlord’s contribution towards drawing up the tenancy agreement is £60.00 and any subsequent renewal documentation is £60.00. Inspections – Your property will be visited every three to six months and inspected. These inspections are purely superficial and are not intended to be a structural survey or inventory check. Deposit – The Tenant’s deposit will be held in a bonded client account for the duration of the tenancy and will be registered with the Tenancy Deposit Scheme if required. Inventory Check-out – At the end of the tenancy, the property manager will arrange for the inventory clerk to visit the property and produce a report confirming the cleanliness, state of repair, condition and decoration of the property. The property manager will then use this report, take any action necessary and administer the deposit accordingly. Utility transfer – Gas, electricity, water and council tax accounts will be closed off and forwarded to the outgoing Tenant. Gas and Electrical safety inspections – The property manager will arrange for the relevant inspections and certificates as required by law.
Property Sales If you are considering selling your property our dedicated specialist sales team would be delighted to help. We can offer a free no-obligation assessment of the sale potential of the property including strategies on how to maximise the appeal of the property and recent comparables of prices achieved for similar property in the immediate neighbourhood. We bring the same level of professionalism and commitment to the sales market that has made Granville Residential the leading letting agent locally for many years. To discuss a potential sale of your property please call 01628 481381. The specialist sales team act in accordance to the rules of conduct for both the National Association of Estate Agents and The Property Ombudsman to ensure the highest standards of service.
e) If required, registration of a Tenant’s deposit under the Tenancy Deposit Scheme is charged at £40.85 per tenancy and £40.85 for any subsequent renewal.
Property Management Property Management is charged at 5% of the rent received and is charged monthly in advance (subject to a minimum monthly fee of £30.00).
Fee Rebate If a tenant invokes a break clause (if applicable) and the property is re-let through Granville Residential, 100% of the fees paid for the outstanding period will be refunded. If the property is not re-let through Granville Residential, 50% of the fees paid for the outstanding period will be refunded. Should a Landlord terminate the tenancy by invoking a break clause, then any fees paid are non-refundable.
VAT Value Added Tax will be applied to all fees, charges and commissions. This brochure offers a guide to our specialist letting service. We hope to be able to assist you in finding a suitable, quality Tenant for your property quickly and efficiently. To start letting your property or for details of our specialist residential sales service please call 01628 481381. Disclaimer: The particulars and details in this brochure are believed to be correct at the time of going to press and may be subject to change.
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Granville Residential Ltd. 36 West Street, Marlow, Bucks SL7 2NB, UK Tel 01628 481381 Fax 01628 481373 E-mail post@grl.co.uk
Registered office: 7 Gore Road, Burnham, Bucks, SL1 8A Company registration no: 5099403