| FAQ's
WHAT IS A TENANCY AGREEMENT
A Tenancy Agreement is a legally binding
contract between the Landlord and Tenant that sets out both
the legal and contractual responsibilities and obligations
of both parties. It is imperative that if you have any individual
conditions that are important to you or especially relevant
to the particular let or property, that you advise us so
that they can be incorporated into the Tenancy Agreement.
It is usual for landlords to sign the Tenancy Agreement
themselves.
Tenancies will take one of two forms
being either an Assured Tenancy or, more commonly, an Assured
Shorthold Tenancy. Recent legislation has determined that
unless specifically shown in a written agreement any new
tenancy created will be deemed an "Assured Shorthold
Tenancy".
An Assured Shorthold Tenancy guarantees
the tenant a minimum first Term of 6 months. The tenancy
may be brought to an end by the Landlord by way of a 2 months
previous Notice in writing. Whilst the Agreement may stipulate
that one month's Notice is required from the Tenant to terminate
at 6 months, the Law entitles the tenant to ignore this
and merely hand in the keys to the property at the end of
the first 6 months.
Once the 6 months has elapsed, our Agreement
is so worded as to permit the automatic continuation thereof
on a month-to-month basis. The tenant may terminate the
tenancy at the end of or any time beyond the first 6 months
by 1 months previous Notice in writing. The timing of the
service of a Notice to Quit has been the subject of litigation
and needs to be supervised very carefully in order to conform
as a valid Notice. Several matters need to be taken into
account with regard to the setting up of a letting and these
are summarised below: - top
WHAT IS AN INVENTORY?
This is an absolutely essential document
that provides a written benchmark detailing the the fixtures
and fittings and describes their condition and that of the
property generally. We will always undertake to provide
a full inventory of contents together with a schedule of
condition and example photographs (where possible). This
will be attached to and form part of the tenancy Agreement.
The Inventory is checked by us upon the tenant's checkout
and before the return of the security bond/deposit. Shortfalls
in condition or damages will be assessed and suitable compensation
agreed although it must be understood that 'fair wear and
tear' provisions apply to all tenancies. Compensation will
be deducted from the bond. - top
SHOULD I TAKE A BOND/DEPOSIT?
In all cases, Stephenson (Residential
Lettings) Ltd will secure a bond from an ingoing tenant
prior to the taking of possession. The Bond will comprise
of a sum which is equivalent to approximately six weeks
rent. Stephenson (Residential Lettings) Ltd will act as
stakeholders in the matter and the monies taken will be
kept in a dedicated 'clients accounts'. No interest will
be paid to either party. - top
DO I NEED CONSENT TO RENT?
If you have a mortgage you must obtain
a letter of consent to the letting from your mortgage company.
It should be noted that some Building Societies may charge
a higher interest rate for let properties and raise a service
charge. If your interest in the property is leasehold your
lease may dictate that you obtain written consent from your
Landlord prior to the letting. - top
WHAT ABOUT INSURANCE?
It is essential that you advise your
insurance company of your intention to let and to review
any existing policies when renting or letting a property
for the first time as some standard insurance products will
either not provide cover or might place restrictions on
cover, for rented property and/or its contents. A failure
to inform your insurer that you are renting/letting a property
could invalidate any subsequent claim. It is the Landlords
responsibility to insure the building and his/her contents,
fixtures and fittings. The tenants are responsible for insuring
any of their own possessions. There are various specialist
insurance products designed for landlords and tenants of
rented property and as an Authorised Introducer for #Homelet,
who are the leading provider of business products and services
to the letting industry, we can introduce you to a comprehensive
range of policies which are designed specifically to safeguard
you from the pitfalls of being a landlord. - top
WHAT ABOUT SAFETY REGULATIONS?
Fire Regulations
Landlords should be aware that the furniture
they provide must comply with the Fire Furnishings (Fire)
(Safety) Regulations 1988 which were amended in 1993 and
have set new rules for the level of fire resistance for
domestic upholstered furniture and furnishings. All property
let for the first time since March 1993 must contain furniture
that complies with the regulations and ALL furniture irrespective
of date of let MUST comply with effect from 1st January
1997. It is an offence to breach these regulations and whilst
we can give full advice on the matter we suggest that you
obtain a comprehensive guide to the regulations from your
local Trading standards Officer.
Gas Regulations
Part F35 of the Gas Safety (Installation
& Use) Regulations 1994 came into effect on 31st October
1994 and applies to all domestic property which is let.
These regulations compel landlords to have all gas equipment
serviced annually by a suitably qualified person and to
keep records of any work carried out on the appliances.
Such records must be available for inspection at any time.
All of our properties are diarised for annual inspection
by a C.O.R.G.I. registered company.
Electrical Requirements
It is important that all electrical appliances
provided have been serviced and are not faulty (Electrical
Equipment (Safety) Regulations 1994). - top
WHAT REPAIRS & MAINTENANCE AM
I RESPONSIBLE FOR?
As a Landlord you will have a legal responsibility
to repair the structure and exterior of the property, including
drains, gutters and external pipes and to keep in working
order the mains supply of gas, electricity and water. A
tenant has an implied covenant to act in a 'tenant like
manner'. Broadly, this means to report disrepair promptly;
to take reasonable steps to ensure that neither the tenant
nor their guests damage the property or its fixtures and
fittings; and to generally do the minor day to day things
any home-occupier would normally do e.g replace light bulbs,
fit new batteries to smoke or CO2 detectors; etc - top
WHAT ABOUT TAX?
Income from rented property is classed
as 'unearned income' and as such will be taxed at the top
rate applicable to the Landlord. Only certain deductions
are possible from the gross rent being: management fees,
10% of rent for depreciation if furnished or part funished;
fair wear and tear and repair costs; insurance premiums;
mortgage interest. The net rent is then taxable at the appropriate
rate. It is the Landlords responsibility to make an appropriate
declaration within their own tax return. We are sometimes
obliged, however, to submit a list of clients and details
of their gross rental income to the Inland Revenue under
the Taxes Management Act 1970 and at such times the client
will be advised of figures provided. - top
I'M GOING ABROAD - DO I STILL PAY
TAX?
In the majority of cases, where a landlord
is non-resident in the UK for taxation purposes, he/she
still has to pay UK Income Tax upon rents received. The
Inland Revenue will hold a managing agent responsible for
the collection and payment of such tax. All overseas clients
are recommended to consult with an Accountant upon this
matter as without detailed guidance as to tax liability
we shall be obliged to deduct 22% of net rents payable and
put to a dedicated 'clients account'. No interest will be
payable upon monies held in such account. - top
IF YOU HAVE ANY
OTHER QUESTIONS PLEASE DO NOT HESITATE TO CONTACT US.
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