BuyingPreparation for letting your property
We recommend that your property should be presented to the highest standard possible to secure an early tenancy. We can advise you on all aspects of furnishings, fittings and decorations and, if required, recommend contractors to help you should you need it. We would also recommend that prior to letting the property's carpets should be professionally cleaned.
If your property is mortgaged it is important that you tell your mortgage company that you will be letting the property and we must be informed of any requirements your mortgage company have which must be stipulated on the rental of the property.
It is also up to the landlord to insure the property for rental use. If the property is unfurnished it is up to the landlord to insure the building and we would also recommend the minimum level of contents, to cover carpets and curtains. For furnished lets both the buildings and contents should be covered for rental use. We can offer quotes for both buildings and contents insurance.
Unfurnished lettings
The majority of enquiries are for unfurnished properties, which maybe because the potential tenants have just sold a property and do not wish to put their own belongings into storage. It is also a lot easier and less expensive for the landlord to rent unfurnished because whatever is provided with a furnished tenancy needs to be kept in good working order or replaced should the item breakdown. We recommend that the property is offered with carpets, curtains, lampshades and possibly a cooker. Heating is also a good letting point.
Furnished lettings
- TVs and hi-fi are not normally necessary as tenants will bring their own
- Beds and all soft furnishings including sofas and chairs must be of good quality and comply with the 1988 fire regulations
- Protect tables and furniture tops with glass or suitable covers
- Leave full photocopied instructions for all appliances, boiler and kitchen gadgets. - plus of course details of where all the main switches, stopcocks, etc in case of an emergency
As from 1st January 1997 all furniture in tenanted residential property must comply with the 1993 amendments to the Furniture and Furnishings (Fire) (Safety) Regulations 1988 which extends the scope of the Consumer Protection Act 1987 (CPA). This covers the supplying (hiring or lending) of specified goods (upholstered furniture and certain furnishings) "in the course of business".
The regulations apply to:
- Arm chairs, three-piece suites, sofas, sofa beds, futons and other convertible furniture.
- Beds, bed bases and headboards, mattresses, divans and pillows.
- Nursery furniture
- Garden furniture which could be used indoors
- Loose, stretch and fitted covers for furniture, scatter cushions, seat pads and pillows.
The regulations do not currently apply to:
- Antique furniture or furniture manufactured before 1950
- Bed clothes and duvets
- Loose mattress covers
- Pillowcases
- Sleeping bags
- Curtains
- Carpets
Furniture which complies carries a manufacturer's label which must be permanent and non-detachable.
Bed bases and mattresses are not required to bear a permanent label but compliance will be indicated if the item has a label stating that it meets BS7177 The appliances such as the cooker, refrigerator, washing machine, dryer and dishwasher (if applicable) should be in good clean working order and must have the full manufacturers operating instructions provided.
Safety requirements
The legal position
The Housing Act 1988 (as amended by The Housing Act 1996) brought about fundamental changes to the law governing the letting of the residential property to individuals. Many of the changes made the market more attractive for Landlords by making it easier to let at a market rent and recover possession when necessary. The new Act specifies the types of tenancy and whilst there are several types it is most likely that the tenancy of your property will be either an Assured Shorthold Tenancy or a 'Company Let'.
The following information is intended only as a guide for Landlords and should in no way constitute a detailed interpretation of the complete regulations. Whilst the Regulations might appear onerous they are designed to ensure the safety of the property and tenants whilst a let is being executed.
Gas safety (insulation and use) regulations 1988
These cover all gas appliances, flues, meters and associated pipe work and require Landlords to ensure that appliances remain safe at all times and are checked and certified at least once every 12 months. A Landlord's certificate must be provided at the commencement of the tenancy to prove that the appliances are safe - a tenancy can not commence without one.
A record of Corgi registered engineer's checks must be kept. Instruction booklets must be provided for each appliance supplied. Clifford and Drew will arrange for the gas safety checks/certificates to be carried out on properties under Full Management once a year.
The electrical equiptment (safety) regulations 1994
These regulations apply to all persons, who in the course of business, let accommodation which contains electrical equipment. If Landlords are supplying the electrical installation and any connected appliances it is essential that they are compliant.
There is currently no legal requirement for Landlords to have a formal annual safety check on electrical equipment. However, this is open to interpretation. As far as Trading Standards are concerned a Landlord must be able to demonstrate that electrical appliances are safe before the property is let. Should any piece of electrical equipment have a fault, which results in injury or fatality the person responsible for supplying the equipment could be prosecuted therefore, Clifford and Drew recommend 5 yearly electrical safety checks of all electrical appliances by professionals.
Landlords should note that the maximum penalty for non-compliance with these regulations is a fine of £5000 or 6 months imprisonment!
Taxation of letting income
The details shown are only a guide and are correct at the time of printing. You should seek the advice of your professional adviser or tax office.
Overseas, 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 any UK income tax due on rents arising in the UK.
Unless the Landlord can provide Clifford and Drew with an exemption certificate from the Inland Revenue, we are obliged by law to deduct basic rate tax from rents received and account to the Inland Revenue on a quarterly basis. Landlords are responsible for obtaining their own exemption certificate, which are issued to the agent and are not transferable. Exemption certificates are required by any person named, as landlord, on the agreement when living overseas.
Details on taxation are correct at the time of printing. For further information and advice please contact the Inland Revenue on 0151 472 6208 or 6209.
Reducing tax liability
As a landlord the Inland Revenue will view you in the same way as a business, meaning that costs and expenses incurred may be offset against the rental income. These expenses can substantially reduce or eliminate your tax liability. The Letting income on which you are subject to tax is gross income, less certain expenses incurred which usually include:
- Loan interest (subject to conditions)
- Rent, rates and ground rent
- Cost of providing services included in the rent
- Professional fees, agents, accountancy and legal fees
- Cost of repairs
- Maintenance charges
- Water rates
- 10% wear and tear allowance (furnished properties)
For more information contact our lettings Office by email - lettings@cliffordanddrew.co.uk or telephone - 01722 329795.