Landlord Guide: Things To Consider As A Landlord
Have you been thinking about becoming a landlord in Peterborough? Perhaps you have a property that you’re not sure if you should or sell? Maybe you have some money are interested in investing in rental properties? There are lots of good reasons to become a landlord. However, there are also things to consider as a landlord. We have listed some of these considerations below for you.
If your property is mortgaged, you should obtain your mortgagee’s written consent to the letting. They may require additional clauses in the tenancy agreement. If there are any, you must inform us of this.
If you are a leaseholder, you should check the terms of your lease. You will also need to obtain any necessary written consent before letting.
You should ensure that you are suitably covered for letting under both your buildings and contents insurance. Failure to inform your insurers may invalidate your policies. We can provide information on Landlords Legal Protection, Rent Guarantee Cover and Landlords Contents and Buildings Insurance if required.
We recommend that you arrange for regular outgoings e.g. service charges, maintenance contracts etc. to be paid by standing order or direct debit. Where we are managing the property, the landlord is still responsible for any utility bills for void periods or during a change of tenancy. The tenant is usually responsible for paying the utility bills throughout the Tenancy period. For any maintenance issues, we can take payment from the rent received to cover the cost of maintenance contractors – if preferred.
We will arrange for the transfer of Council Tax and utility accounts to the tenant. Meter readings will be taken, allowing your closing gas and electricity accounts to be drawn up. All these matters we will handle for you. However, British Telecom will require instructions directly from both the Landlord and the Tenant.
When resident in the UK, it is entirely the Landlords responsibility to inform the Revenue & Customs of rental income received. You will also need to pay any tax due. Where the Landlord is resident outside the UK during a tenancy, he will require an exemption certificate from the Revenue & Customs before he can receive rental balances without deduction of tax. Where we are managing the property, we will provide advice and assistance on applying for such exemption.
It is most important that an inventory of contents and schedule of condition be prepared. This will help to avoid misunderstanding or dispute at the end of a tenancy. Without such safeguards, it will be impossible for the Landlord to prove any loss, damage, or significant deterioration of the property or contents. In order to provide a complete service, we will, if required, arrange for a member of staff to prepare an inventory and schedule of condition. This will be at the cost quoted in our Agency Agreement.
Most tenancies will automatically be Assured Shorthold Tenancies (ASTs), provided the rent is under £100,000 a year and the property are let to private individuals. Tenancies are usually granted for an initial fixed term of either 6 or 12 months. When the fixed term has expired the landlord is able to regain possession of the property provided, he gives two months written notice to the tenant. New rules on gaining possession via Section 21 apply to tenancies created on or after 1 October 2015. For more details, please speak to one of our lettings team for expert advice and guidance.