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The
Benefits of Letting
There can be a number of reasons why you are
considering letting your property. You may have to move
away for work. Perhaps you are considering purchasing a
property as an investment opportunity. Whatever your reason
1-2-Let can help you maximise your return
and minimise the risk of residential letting.
legislative changes have removed many of the
uncertainties associated with letting so that you should
always be able to regain possession of your property at
the end of a letting period.
Financial returns from letting have significantly
improved due to the return to real growth in house prices,
the availability of 'buy to let' mortgage schemes, and the
ability to offset most costs associated with letting against
rental income for tax purposes. Letting can provide both
Income and Capital Growth.
Strong economic growth, an increasingly mobile
professional workforce and corporate relocations combine
to ensure a strong demand for rental property in this geographic
region. 1-2-Let have established professional
relationships with large companies and relocation specialists,
thus ensuring that you have minimal periods when your property
remains unlet.
Here is the breakdown of the 1-2-Let
philosophy for letting success:
Preparing for Letting
Assessment of
the property
Various factors need to be taken into account when advising
a landlord of how they should best proceed with their
letting. The location, condition and size of the property,
standard of contents and fitting provided and prevailing
market forces are all factors which must be considered.
A Property Assessment will be carried out by an experienced
1-2-Let portfolio manager visiting the property to carry
out an initial inspection, following which all relevant
issues will be discussed in greater detail with you. This
enables you to ask any questions that you may have and
discuss any particular concerns. This service is provided
free and with no obligation.
Neutral decor works best
Remove all "Clutter"
Painted surfaces are easier to maintain than wallpaper
Gardens should be neat and tidy
Professional cleaning is recommended and undertaken by
1-2-Let
"Should I Let Furnished
or Unfurnished?"
Depending on the size of the property, the market is
generally evenly divided between demand for furnished
and unfurnished, though most letting to a Company as tenant
will usually be on a furnished basis. If furnished then
of course the better the standard and execution of furnishing
the greater the opportunity for maximising the rent achievable.
All properties should usually include carpets, curtains,
cooker, refrigerator and or washing machine. Furnished
properties will also include the furniture found in most
homes (beds, tables, chairs, suites) kitchen crockery,
cooking utensils and cutlery. Better presentation and
quality of the property and furnishings will be reflected
in the monthly rental achievable. Linen and towels are
not normally included even in a fully furnished property.
Television and Hi-fi can be advantageous.
We have a list giving a suggested inventory, and you
may find it useful to refer to this if you are intending
to let on a fully furnished basis. A major consideration
for landlords who have a choice whether to let a property
furnished or unfurnished is that there are regulations
which must be adhered to, specifically on furnished properties.
This is discussed further under "Legislation".
We will undertake to compile and prepare a full inventory
and Schedule of Condition. Carpets and curtains can be
very expensive to replace and unless the condition of
these soft furnishings and interior decor is properly
documented you will be unable to claim recompense for
any damage at the end of the Tenancy.
We will prepare the tenancy agreement for you. Usually
we will create a ‘Short Assured Tenancy’,
which is the industry “norm” and assures a
Landlord possession of the property at the end of the
fixed term. The tenancy agreement details the areas of
responsibility between you, your tenant and ourselves
as your agent, basically confirming to all parties who
is liable for what with the property. It also clarifies
what can or cannot be done to the property such as who
is liable for repairs or damages etc.
The signing of a tenancy agreement is not sufficient
in itself to regain possession of your property and we
will prepare various Housing Act notices which must also
be served in conjunction with the agreements. Execution
of all documents both initially and on any renewals is
all part of the service we provide on your behalf.
With all tenancies the minimum initial period is normally
a six-month let, the maximum we would advise at any one
time is twelve months. Renewals can be for any length
of time although for control purposes we would only advise
a 12-month maximum. However if you wish to entertain a
longer let and the tenant is in agreement then we would
discuss this and proceed on the basis of your instructions
to us.
"How do I know that the tenants will
be suitable?"
One of the principle functions of a managing agent is
the identification and referencing of a quality tenant.
We will extensively market your property using both advertising
and direct contact with a wide range of 'blue-chip' companies
and relocation organisations. Our aim is to secure the
right tenant at the right rent in the shortest possible
time.
On your behalf we will take references on every individual
tenant who is to be named in the tenancy agreement which
will normally mean everyone over 18 intending to reside
in the property. The report sent to us by the credit referencing
company will be actioned on the basis that the conclusion
deems the applicant to be a suitable tenant and acceptable
to underwriters for legal and rent protection policies.
This process will include full credit referencing and,
providing they can be obtained, various financial references
such as current and previous employment references, current
or previous Landlords references and a bankers reference.
To further strengthen your position we may decide to also
take a Guarantor to back up the tenants ability to meet
their commitments to you.
"How do
I know that the tenants will look after my property?"
We regularly inspect the property during the tenancy
and advise on any adverse conditions. From our extensive
experience we know that if the tenant understands that
the property and their tenancy of it is being closely
monitored they are more likely to maintain high standard
of care in that property.
The tenancy agreements make reference to the fact that
we have the right to visit the property at times acceptable
to the tenant, provided that reasonable notice has been
given. If you want to visit the property yourself during
the tenancy we would make the necessary arrangements but
again the tenant is entitled to prior notice.
"What if
there is any damage?"
On taking occupancy the tenant lodges a dilapidation
bond equivalent to four to six week's rent. This bond
is held throughout the tenancy by 1-2-Let, as agent for
the landlord, as provision against anything above that
might not reasonably be considered fair wear and tear
allowing for the length of the tenancy.
When tenants are checked out of a property an assessment
is made, by comparison against the original inventory,
of any redecoration or minor repairs which cannot reasonably
be accepted as fair wear and tear. We will negotiate and
agree with the tenant on your behalf the amount that will
be withheld, obtain estimates by way of confirmation and
the net deposit then remaining will usually be released
to the tenant. We will then arrange for any necessary
work to be carried out prior to installing the next tenant.
"What about Repairs and
Maintenance?"
Repairs are of course necessary to each and every property
throughout the length of the tenancy and Landlords must
be prepared for this eventuality plus of course repair
and/or replacement of major electrical items such as cookers,
washing machines and refrigerators as they age.
We will make arrangements, on your behalf, with our local
contractors or contractors of your choice to carry out
any such necessary works.
We will agree in advance the level of responsibility
you wish us to have in arranging repairs and replacements
and then proceed accordingly, without further reference
to you or as discussed and agreed. The normal level of
agreement is any repairs or maintenance up to the estimated
cost of £150. Some landlords are prepared to accept
responsibility themselves for such matters once they have
been reported to them by us and this is perfectly acceptable
to us.
Where there is an emergency repair, such as a burst pipe
or a gas leak, there are different legal obligations on
all parties and we may well need to instruct the work
immediately to prevent any further damage to the property
or heath and safety risk to the tenants. In such circumstances
we may need to act first and then report to you, and common
sense has much to do with such decisions.
However, it is also made clear to tenants that only in
the most extreme of circumstances should they consider
instructing their own contractor and that should they
do so they may be liable themselves for the full costs.
Major repairs will, of course, be discussed with you first,
estimates obtained for your approval and the subsequent
works supervised by us and reported to you as necessary.
Before the Tenant moves into the Property, arrangement
should be made for the garden to be in good order. We
can make agreements on your behalf for a gardening contractor
to carry any necessary work.
Tenants are generally responsible for the upkeep of the
garden and you should provide sufficient gardening tools
and a mower for their use, items which will be included
in the Inventory. Alternatively you may wish us to arrange
for a regular gardener during the tenancy and reflect
this cost in the rental charged.
Between three months and one month prior to the end of
the tenancy we will inform you of the details. This would
be your opportunity to discuss your further instructions.
We will then take the appropriate action with the tenant
to renew their tenancy or schedule their check-out. The
Property will be re-marketed if the incumbent tenants
are not renewing.
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