Permission/Consent and Compliance…….
Letting a property brings with it responsibilities for the landlord and we are there to offer advice and support.
Mortgagor and Freeholders
It may be necessary to obtain permission from your Mortgagor before letting your property. If your property is Leasehold, you may need the consent of the Freeholder or the Management Company also.
Notify your insurance companies (building and contents) of your intention to let. Your cover and or premiums may be affected and most importantly they could refuse to pay a claim. Ensure that you have third party/public liability cover in case there are claims against you following accidents etc at your property. Check whether contents cover includes accidental damage by the tenant.
You can let furnished, part furnished or unfurnished. The property needs reasonable quality clean carpets and curtains and light fittings. Furnished accommodation should provide the essentials only, such as beds (double for a double bedroom, single for single bedroom), wardrobes, lounge and dining suites, white goods, cookware and tableware. Remember, there will be some wear and tear on anything which you leave in the property. Soft furnishings must display labels stating that they are ‘flame retardant’. Labels do vary; advice can be given upon request as to whether or not your furniture complies. Soft furnishings include suites, headboards, mattresses and bases, the padded seat of chairs, etc. It is likely that any furnishings manufactured prior to 1988 will need to be replaced.
Gas Safety (Installation & Use) 1998
All gas appliances, boiler flues and associated pipework must be checked and certified as safe by a registered Gas Safe Engineer prior to the tenancy commencing and then annually. Osbornes can arrange a Gas Safe Engineer to attend the property. www.hse.gov.uk/gas/
Energy Performance Certificate
Under new EU legislation from the 1st October 2008, when buildings are to be let, the landlord must ensure that a valid Energy Performance Certificate is made available to all prospective tenants. Osbornes can arrange an Energy Performance Certificate inspection and report which covers all the legal requirements. This will be valid for 10 years from the date of issue and is available in hard copy and electronic format (pdf).
Electrical Equipment (Safety) Regulations 1994 & Part P of Building Regulations 2005
We recommend an annual inspection of any equipment or appliances that you supply to the property and a five yearly inspection of the main wiring of the property. Osbornes can arrange an electrical inspection of the property.
Deposit (Protection Schemes)
Tenancy deposit protection applies to all Assured Shorthold Tenancies and legally obliges landlords to ensure the tenants’ deposits is registered with one of three Government approved Deposit Protection Schemes. The scheme effectively ‘guarantees’ that the tenants deposit is safe until the end of the tenancy. They also provide a free arbitration service. Osbornes are happy to ensure that the deposit is registered and all compliance adhered to on your behalf. www.direct.gov.uk/en/tenancydeposit/index.htm
All income earned in the UK is subject to taxation, regardless of whether the recipient lives in the Uk of nor. However the Inland Revenue does allow for deductions to be made against the table income, to compensate landlord for the business costs of running their property. Detailed information on the allowed deductions can be found at wwww.direct.gov.uk. It is also advisable to seek professional advice from an Accountant or Tax Advisor.
If you are moving abroad to live or work for a period of six months or more HMRC will consider you to be an overseas landlord. By completing form NRL1 for an exemption certificate you will be entitled to receive rental income without the basic rate tax being deducted. www.hmrc.gov.uk
Landlord’s Repair Obligations
Landlords must maintain the standard of repair in their property from the start of the tenancy and are liable for any injury or damage caused as a result of defects in the premises. Obligations include keeping in repair the structure and exterior (drains, gutters and external pipes) and keeping in repair and good working order the installation for heating and water. The same applies to the supply of gas, electricity and water sanitation (basins, sinks, baths and toilets).