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Transcript of Sky Lettings
Skye Lettingswww.skyelettings.co.uk
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Welcome to our
ResidentialLetting Guide
Welcome to Skye Lettings Portsmouth Ltd.
We are an independently owned and run business with
years of experience as residential letting agents, and pride
ourselves at being able to offer the highest standard of
service to all our landlords.
We understand that letting a property is a serious business,
whether you have a large portfolio or are letting your own
home for the first time. By choosing Skye Lettings Portsmouth
Ltd as your agent, you can relax in the knowledge that we
will be here every step of the way, ensuring that the process
of letting your home is as stress free as possible.
There is a high demand in the Portsmouth area for
good quality rental properties with the scope for a good
rental return and we continue to build relationships with
companies and organisations located in the area who have
both continual and on-going accommodation requirements
for their employees.
Your property is a major investment and it is important that
you are aware of your responsibilities as a landlord as well
as knowing the best way to optimise your investment. This
guide is designed to give you help and advice in this area
and explain the services we can offer you.
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ContentsTo Buy Or Not Buy? 4
Letting Service 5
Letting Service (Cont) 6
Safety Regulations 8
Service Level Summary 11
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To Buy Or Not Buy?
Whether this is your first buy to let investment, or
an addition to your existing portfolio, it is important
that you are buying the right property to suit your
requirements. At Skye Lettings, we have all the
expertise required to help you choose the right
type of property to suit your budget and personal
circumstances. We can advise you on location, local
demand and rental values to enable you to achieve
the most from your investment, as well as explaining
all the legal, financial and tax issues wherever
possible.
What next?We can provide all the information and advice you need about the next steps in letting your property. This can include any
of the following;
• Furnished or unfurnished?
• Decoration
• Presentation
When we come and visit the property for the first time, we will guide you through all the steps you need to take to maximise
the property’s rental potential.
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Letting Service
A - Tenant Find Service
RENTAL ASSESSMENT
A free rental assessment will be provided with quoted
rents, exclusive of all domestic services and council tax.
Once a market rent has been agreed, Skye Lettings will
begin a comprehensive local and national marketing
campaign to ensure your property reaches the biggest
possible audience. This is done by advertising on all major
internet property portals, such as Rightmove.co.uk and
Primelocation.com, as well as our own website
www.skyelettings.co.uk. We regularly utilise the local
print media, specifically and we make use of our database
which will identify suitable tenants on our waiting list. As
well as all these we regularly circulate property details to
local hospitals, universities, and our corporate client list.
VIEWINGS
Skye Lettings accompany all applicants to your property,
and we would recommend that you supply a spare set of
keys to allow us to gain access as and when required, to
ensure a fast and efficient service. For your reassurance,
all our keys are security tagged and locked away.
TENANTS
There is always an element of risk with letting a property,
but an experienced agent will know when to refuse
an applicant. Skye Lettings will always discuss your
particular needs in detail and strive to find a suitable
tenant. All tenants are fully vetted by our independent
referencing agency, and we usually receive a response
within 48 hours enabling us to confirm the tenant’s
suitability, quickly and efficiently.
The referencing, where applicable, includes;
• Employer Reference
• Previous Landlord/Letting Agent reference
• Credit search and score
• I.D check
• Guarantor if necessary
TENANTS CONDITION OF ENTRY
Following acceptable references for each tenant moving
into your property, tenants will be required to pay one
calendar months rent as deposit, and one months rent
in advance. We will arrange and coordinate the tenants
occupation of the property, including the preparation of
the Assured Shorthold Tenancy agreement, and serving
of the legal notices. We will also write to utility providers
and the local authority notifying them of the change in
occupancy. This is where our involvement will cease with
a Tenant Find Service.
For landlords, we offer three different levels for the letting and management of your property.
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Letting Service (Cont)
B – Fully Managed ServiceThis service has all the benefits of our Tenant Find Service,
but also includes all the following;
• Inventory and Schedule of Condition
• The Tenancy Deposit
• Rent Collection
• Safety Inspections
• Property Inspections and reports
• Repairs and Maintenance
• Safety Regulations
• Taxation
C – Fully Managed Plus ServiceThis service includes everything provided by our Tenant
Find Service and Fully Managed Service, but also includes
full Rent Guarantee and Legal Protection.
Our commitment is to pay the rent to you, even if the
tenant doesn’t. Plus, the legal cover ensures that any
costs involved in any possession orders are covered. This
option is worth considering if you want total peace of mind.
We’ll also advertise your property as a Premium Listing on
Rightmove to ensure that it stands out against any other
properties that come up in the search results.
INVENTORIES
Skye Lettings will prepare a full Inventory and Schedule
of Condition prior to any tenants taking possession of the
property. The tenants are required to review the document
in full, and sign it prior to moving in. The document is then
held on file until the tenants vacate, when Skye Lettings will
perform a check out inspection of the property and assess
any dilapidations. If any dilapidations are found, we will
always attempt to recover any associated costs from the
tenants deposit. Please note that “wear and tear” must be
taken into account when assessing dilapidations.
THE TENANCY DEPOSIT
The Tenancy Deposit Protection Scheme was made
legislation from the 6th April 2007, whereby any deposit
paid by a tenant after that date must be held in either a
custodial or insurance based scheme. Skye Lettings will
ensure your compliance as standard as part of our Fully
Managed Services.
Any Landlords using our Tenant Find Service must use a
custodial scheme, and pass any deposit paid by the tenant
to the scheme within 14 days of receipt. The landlord must
give the tenant the prescribed information (to be set out in
secondary legislation) about the scheme being used, also
within 14 days of receiving the deposit. More information
can be found at;
www.tenancy-deposit-schemes.co.uk
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RENT COLLECTION
Skye Lettings will receive and account for rental receipts
on a monthly basis, or an agreed period, and submit a
statement of income and expenditure to the landlord.
We will also credit net rental receipts into the landlord’s
nominated bank/building society account as soon as the
payment has cleared. Rent reminders are sent out as a
matter of course, and the landlord will be kept updated in
any event of non-payment.
Whilst every effort will be made by Skye Lettings to collect
the rent and ensure that the tenancy agreement is adhered
to, the landlord will be responsible to initiate and settle
costs of any legal action recommended by Skye Lettings,
should this prove necessary. For any landlords using our
Fully Managed Plus service, this service is included for you
as a matter of course.
SAFETY INSPECTIONS
Every year of our agreement with you, we will arrange
for our fully qualified engineers to carry out Gas Safety
inspections on your behalf which are required by law?
PROPERTY INSPECTIONS AND REPORTS
Skye Lettings will perform two interim inspections on the
property every year, to ascertain whether the tenants are
maintaining the property as per the terms of their contract,
and to check for any visible defects that may require
attention. We will send you a full report after each inspection
notifying of any actions that may be required.
REPAIRS AND MAINTENANCE
Our management and maintenance team is on hand to deal
with all aspects of any problems relating to repairs which
may be required on a day-to-day basis with your property.
All our tenants can also contact our out of hours response
team for any emergencies.
During the tenancy, we will attend to any minor repairs and
obtain estimates for more serious work. Where required,
we will always obtain your permission and authorisation
prior to the execution of work, except in the case of real
emergency. Any repair work that is required as a result
of negligence or mis-use by the tenant is payable by the
tenant. In all other cases, the landlord is responsible. We
advise all landlords to ensure that the tenant is furnished
with full instructions or manuals for all appliances, central
heating systems etc to avoid the risk of accidental mis-use
by the tenants.
All of our contractors are qualified and members of the
relevant bodies required by legislation. If you would like us
to use your own preferred contractor, we can facilitate this
but would require the contractor to supply us with copies of
their insurance and scheme membership.
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The landlord and/or his managing agent are responsible
for ensuring that the property meets safety standards with
regard to the gas installation, pipe work and appliances.
GAS SAFETY (INSTALLATION AND USE)
What does the law require of you?
As a landlord, you’re legally required to ensure that:
• Pipe work, appliances and flues provided for tenants
are maintained in a safe condition.
• An annual safety check is carried out on each appliance
and/or flue that you provide for tenants’ use.
• Maintenance and annual safety checks are always
carried out by a GAS SAFE registered installer
• You keep a record of each safety check for at least two
years.
• You issue a copy of the gas safety certificate to each
existing tenant within 28 days of the gas safety being
completed and to any new tenant before they move in.
• All gas equipment (including any appliance left by a
previous tenant) is safe or otherwise removed before
re-letting.
Failure to comply with these regulations can result in heavy
fines or even imprisonment, so it is vital that the safety
checks are done every year. Skye Lettings will undertake
these takes on the landlords behalf as part of our fully
managed service.
ENERGY PERFORMANCE CERTIFICATES
As from 1st October 2008 an Energy Performance
Certificate (EPC) has been required for a new tenancy which
must be given to an applicant on or before the first viewing.
Skye Lettings will be unable to market any property until we
are in receipt of the EPC which is valid for ten years. Skye
Lettings can arrange for the assessment to be carried on
your behalf if required.
THE ELECTRICAL EQUIPMENT (SAFETY) REGULATIONS 1994
In order to comply with the Consumer Protection Act,
landlords must ensure that the electrical installation at
a property and any electrical appliance (kettle, toaster,
washing machine, light fittings etc.) is safe and does not
present any danger to a user. To ensure compliance with
the act, a regular (yearly) inspection and testing report is
required.
All appliances supplied must have all the necessary
instruction books and warnings details, and we would
recommend that copies are left at the premises.
Although electrical tests are not yet compulsory (unlike
the Gas Safety Inspections), failure to comply with these
regulations may constitute a criminal offence under the
Consumer Protection Act 1987.
Skye Lettings have more information on the regulations if
requested.
Safety Regulations
9
FURNITURE AND FURNISHINGS (FIRE) (SAFETY) REGULATIONS 1988 (AMENDED 1989 & 1993)
All upholstery and upholstered furniture and furnishings
(mattresses, scatter cushions, sofas, beds etc)
manufactured after 1950 are required to be fire resistant.
This regulation applies to all let properties.
Any furniture manufactured or re-
upholstered since 1950 cannot be
supplied to a tenant unless it has
been professionally re-upholstered
with conforming materials. Compliant
furniture will always carry a label indicating that it complies.
SMOKE ALARMS
All properties built since June 1992 must be fitted with
mains operated and battery linked smoke alarms on every
floor. There are no similar regulations for older properties,
but Skye Lettings would recommend that smoke alarms are
fitted to each floor of your property.
TAXATIONINCOME TAX
UK Resident landlords
If you are a landlord resident in the UK, your net income
from your investment property is subject to income tax. The
level of tax depends on your other income. If you are already
a higher rate taxpayer, tax will be payable at the higher rate.
The normal method of reporting your taxable income to the
HMRC is by a Self-Assessment Tax Return. The following
deductions can be made from your rental income to arrive
at the net income which is subject to tax:-
• Interest on mortgage (subject to conditions)
• Property repairs
• Letting and management commission
• Building insurance
• Ground rent
• Service charge
Communication with HMRC and tax returns are the
responsibility of the landlord and/or their accountant. Skye
Lettings do not withhold tax for landlords resident in the UK.
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NON UK RESIDENT LANDLORDS
The Non-Resident Landlords (NRL) scheme is for taxing the
UK rental income of persons whose “usual place of abode” is
outside the UK. If you are treated as a non-resident landlord
you still have to pay UK income tax on rental income from
UK property.
Landlords can apply for an exemption certificate from
HMRC, and must provide this to Skye Lettings as soon as it
is received. Without the exemption certificate, we are legally
obligated to deduct basic rate tax from rents received and
account to HMRC on a quarterly basis.
Further information for non-resident landlords and
exemption application forms are available online at
www.hmrc.gov.uk.
GENERAL INFORMATION
If the property you intend letting is mortgaged, you must
apply to your lender for permission first as you may be in
breach of your mortgage agreement if you don’t. It is also
advisable to check your insurance company are aware of
your intentions to let your property.
LEASEHOLD PROPERTIES
Should the property you intend letting be a leasehold
property, you may need to seek permission from the
freeholder prior to allowing tenants occupation. If you do
not seek permission, you may find yourself in breach of the
lease.
IN SAFE HANDS WITH SKYE LETTINGS
If you are thinking of letting your property, this brochure
emphasises the importance of getting the right professional
advice from the outset. We hope it has been informative
and helpful to you.
If you would like to discuss your property in more detail, why
not call and speak to us today, and see how Skye Lettings
can cater for all your property needs.
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Service Levels
• Tenant Find
• Fully Managed
• Fully Managed Plus
Level of Service Tenant Find Fully Managed Fully Managed Plus
Free Property Appraisal ✓ ✓ ✓Full Marketing Campaign ✓ ✓ ✓Accompanied Viewings ✓ ✓ ✓Full Reference and credit checks ✓ ✓ ✓Latest Assured Shorthold Tenancy ✓ ✓ ✓Legal Notices ✓ ✓ ✓Notify Utilities and Council Tax ✓ ✓ ✓Renewal of Tenancy ✓ ✓ ✓Tenancy Deposit Scheme ✗ ✓ ✓Property Inventory ✗ ✓ ✓Rent Collection ✗ ✓ ✓Monthly Management statement ✗ ✓ ✓Property Inspection Reports ✗ ✓ ✓Maintenance and Repair service ✗ ✓ ✓Compliance with Safety Regulations ✗ ✓ ✓Rent Guarantee and Legal cover ✗ ✗ ✓Premium Listing on Rightmove ✗ ✗ ✓
Service Level Set-up Fee Management Charge
Tenant Find
Fully Managed &
Fully Managed Plus &
Service Level Summary
Office 2, The Big Yellow, 8-9 Rodney Road, Southsea, PO4 8BF
02392 812800 [email protected] www.skyelettings.co.uk