LANDLORD RESPONSIBILITIES

As a Landlord there are a number of procedures you will need to adhere to, at Homecare Estates we are more than equipped to guide you to letting your property quickly.

The first thing to do when looking to let a property is to ensure that you fulfil all your legal obligations. If the property is one that you used to live in or any property not purchased with a buy-to-let mortgage you will need to inform the mortgage lender of your intention to let it. If it is leasehold then you need to get permission from the freeholder and/or managing agent’s of the block.

If you are renting the property furnished, the furnishings must comply with fire and safety regulations. Gas appliances must be checked by a qualified Gas Safe registered engineer, and electrical appliances should be regularly checked by a qualified electrical engineer.

SUB-LETTING

If you are the tenant or lessee it is essential for you to make certain of the following:

(i) That the intended letting is permitted by your lease.

(ii) That the tenancy is for a period expiring prior to the termination of your lease.

(iii) That the Landlord's written permission, if required, is obtained for the sub-letting.

MORTGAGES

Where the property to be let is subject to a mortgage, permission is normally required from the mortgagee to sub-let the property. We strongly advise that you obtain your mortgagor's permission to sub-let (if required) in principle, at the earliest date rather than applying for this when a tenant is found.

INSURANCES

You should make certain that your property and contents are adequately insured and that your policy covers lettings; many household policies do not do so. For a free quotation, please contact us on 020 8395 8111.

MAINTENANCE

The division of obligations regarding the maintenance of the property between yourself as Landlord and the Tenant will be set out in the terms of the Tenancy Agreement. However, prior to the letting you should ensure that the property is clean and tidy (both internally and externally) and in good decorative order. All windows should be cleaned and net/curtains washed or dry cleaned. With regard to the garden attached to the property, if the Tenancy Agreement assigns responsibility for the upkeep of the garden to the Tenant then the appropriate tools should be provided. If you, the Landlord, are to be responsible for the upkeep of the garden then appropriate arrangements should be made by you prior to the commencement of the Tenancy.

APPLIANCES

You should ensure that all appliances, including the central heating system, have been checked and serviced before the Tenant occupies the property. We strongly recommend that maintenance contracts on major electrical goods should be taken out if possible. Details of any contracts or relevant telephone numbers should be given to the Tenant as well as any operating manuals or directions, guarantee cards etc. If Homecare Estates are to manage the property then the appropriate information and documentation should be given to us.

KEYS

Please ensure you have sufficient sets of keys to the property. You will have to provide one set of keys per tenant and would advise you to retain a set for yourself in case of emergencies. If we are managing the property we would also require a set unless otherwise agreed.

UTILITIES

The Tenants are responsible for the following; Gas, Electricity, Council Tax, Telephone (if any), Sutton and East Surrey Water, Television Licence, Tenants personal contents Insurance. We strongly advise Landlords to take out their own contents Insurance in case of fire, flooding, burglary etc. All other bills are payable by the Landlord.

FORWARDING OF MAIL

Arrangements should be made with the Post Office for your mail to be re-directed rather than rely on tenants forwarding on your correspondence.

TAXES MANAGEMENT ACT

Section 89(1) Income and Corporation Taxes Act 1970
Where the Landlord's usual place of residence is outside the United Kingdom the Inland Revenue will hold us, as your agents, responsible for the payment of any liability, which arises on rent collected by us on your behalf. Accordingly, it will be necessary for us to retain income tax at the basic rate and hold the amount so deducted to your credit until the taxation liability has been agreed with the Inspector of Taxes. Similarly, if you at present live within the United Kingdom but subsequently change your usual place of residence to outside the United Kingdom, we must be informed in writing by you as it will be necessary for us to commence this deduction from the time you leave the United Kingdom.

The eventual liability for tax may be considered less than the amount we have retained and we suggest that you employ accountants or other tax advisors to agree your assessment each year with the Inspector of Taxes. When this has been settled we are then in a position to account to you for any surplus we may have deducted for that tax year.

We can in certain circumstances be indemnified by the Landlord against such tax liabilities, in which case it would not be necessary for us to deduct tax at source. We would however require a letter of indemnity from the Inland Revenue or your accountant to this effect.
NB: We would not be able to collect rent for Landlords who are residing outside the United Kingdom unless we are instructed on Full Management.

STAMP DUTY LAND TAX

As from 1st December 2003 stamp duty has changed to stamp duty land tax. Unless you enter into a term of seven years or more or the total rental due for the agreed period is £60,000 or more, there is no stamp duty land tax to pay. Under these circumstances, we do not believe you would have to pay any tax under the average agreed let. For further information you can visit the following website: www.inlandrevenue.gov.uk/so

GAS SAFETY REGULATIONS

As from 31st October 1994, it became law for all gas appliances in rented properties to be checked annually by a Corgi, and as from 1st April 2009, a Gas Safe registered engineer. The regulation applies to all Landlords of which a record must be maintained of when each gas appliance was checked, the defects found (if any) and the remedial action taken. You must obtain gas safety certificates for all appliances (including gas hobs/cookers) in order to prove you have carried out your obligations as a Landlord and supply a copy of the certificate to the tenant. Every year more than 30 people are killed in rented accommodation, poisoned by deadly carbon monoxide fumes. These fumes cannot be seen, have no taste and have no smell.

THE FIRE AND FURNISHINGS REGULATIONS 1993

With effect from 1st March 1993, certain items of furniture that are supplied as part of a furnished tenancy must comply with regulations under the Consumer Protection Act 1987 Section 12(1) and 1988 Regulations, The Fire and Furnishing (Fire)(Safety)(Amendment) Regulations 1993 and the Fire and Furnishings (Fire)(Safety) Regulations 1988.

The regulations state that it is an offence to supply in the course of a business any furniture to which the Regulations apply, unless that furniture meets what is known as the "the cigarette test", "the match test" and also what is known as "the ignitability test". These Regulations apply to:

Beds, Convertible beds
Headboards, Nursery furniture
Mattresses, Sofa beds
Sofas, Scatter cushions
Pillows, Seat pads
Armchairs, Futons
Garden furniture with Loose and stretch covers
is suitable for indoor use for furniture

All items listed, except for mattresses and bed-bases that comply with current requirements will carry a permanent label headed "Carelessness causes fires" and the label will also say that either the covers or the interlines will pass the match test. Mattresses and bed bases, although they must comply, do not have to carry a label that identifies, which are safe. However those sold new before 1990 are unlikely to comply.

Items not included in these regulations:

Bedclothes, duvets, loose covers for mattresses, pillow cases, curtains and carpets, furniture manufactured before 1st January 1950.

It is the Landlords responsibility to ensure that such items do comply with the legislation. It is an offence to supply furniture, which does not comply with the Fire Resistance Requirements contained in Regulation 14 of the 1988 Regulations if that furniture has been first provided or acquired since 1st March 1993. There is a transitional period, expiring on 31st December 1996, during which period all existing furniture which was supplied and already used in the same letting property before 1st March 1993, may continue to be so used until 31st December 1996 whether or not there is a change of tenants. Failure to comply with the above could result in a fine of up to £5000 or six months imprisonment or both.

ELECTRICS

The electrical regulations are not so clear and are covered by various different Acts including: The Electrical Equipment (Safety) Regulations 1994, The Plugs & Sockets Safety Regulations 1994 and The General Product Safety Regulations 1994. It is important that both the fixed electrical installation and any appliances or other electrical equipment supplied are safe and that all plugs and sockets are correctly fused and fitted. There are various contractors who will carry out safety checks covering one or all these aspects prior to letting the property and then on an annual basis. Please read the more detailed leaflet enclosed. If you are unsure as to the safety of the electrics in the property, it is best practice to have an electrical report done prior to renting.

SMOKE DETECTORS

The department of Environment (DOE) brought out regulations governing the installation of smoke detectors in new homes, which are incorporated in the building regulations 1991. Since June 1992 all new homes must be fitted with mains operated smoke detectors. They must be installed on every floor and be interlinking. Although there are no such regulations governing older properties, it is advisable to install at least battery operated devices on each floor, if not mains operated ones. It is important that all devices are checked regularly, especially if battery operated.

INVENTORIES

A detailed inventory is essential for both landlord and tenant. It lists the fixtures and furnishings belonging to the property and should also include their condition as well as the condition of the decor. Tenants should be checked into the property against the inventory and this then forms part of the contract between both parties. It is therefore important that enough time, care and attention is given to compiling the inventory to safeguard your interests.

Inventory clerks are not employed by us. However, we can, if required, instruct an independent firm to act on your behalf on your accepting responsibility for their charges. The charge for the making of the inventory is borne by the Landlord, as is the charge for the check in of the inventory at the commencement of the tenancy with the Tenant. The charge for the check out is borne by the tenant while care will be taken in giving instructions to inventory clerks, we cannot accept liability for any error or omission on their part.

TENANT DEPOSIT SCHEME

The Government has introduced amendments to the Housing Bill, which will mean neither Landlord’s nor Agent’s will be able to hold the deposit during a tenancy unless they are part of an approved scheme. This change is effective from 6th April 2007.

This legislation will require all deposits to be safeguarded by an approved scheme, which must also provide a formal dispute process.

Unless it has been agreed that we will hold the deposit on your behalf, you will be required to register as a landlord with one of the approved Government schemes. The Government has awarded contracts to three companies to run tenancy deposit protection schemes.

Custodial Scheme:
Money is held by the scheme until it is time for it to be repaid at the end of the tenancy. The custodian scheme is free to use. The landlord simply puts the deposit into the scheme at the beginning of the tenancy. There is one custodial scheme provider.

1. The Deposit Protection Service (DPS)

The DPS is the only custodial deposit protection scheme, is free to use and open to all landlords. The service is funded entirely from the interest earned from deposits held. Landlords will be able to register and make transactions online. Paper forms will also be available should internet access be an issue. The scheme will be supported by a dedicated call centre and an independent dispute resolution service. For more information, visit the website: www.depositprotection.com, or telephone 0870 707 1707.

Insurance Based Schemes:
Under the insurance schemes the landlord keeps the deposit, and pays the insurance scheme to insure against the landlord failing to repay the tenant any money due to them. There is a choice of two insurance-based schemes.

2. Tenancy Deposit Solutions Ltd (TDSL)

TDSL is a partnership between the National Landlords Association and Hamilton Fraser Insurance. This insurance-based tenancy deposit protection scheme enables landlords to hold deposits. For more information, visit the website: www.mydeposits.co.uk, or telephone 0871 703 0552

3. The Tenancy Deposit Scheme (TDS)

TDS is an insurance backed deposit protection and dispute scheme run by The Dispute Service that builds on a scheme established in 2003 to provide dispute resolution and complaints handling for the lettings industry. The new scheme enables landlords to hold deposits. For more information, visit the website: www.tds.gb.com, or telephone 0845 226 7837.

As of 1st October 2008 an Energy Performance Certificate (EPC) must be obtained before a new tenant enters into a contract. The EPC is valid for rental purposes for 10 years, regardless of how many changes of tenant occur in this period.

If you have recently purchased the property you intend to rent, the EPC included in the HIP (Home Information Pack) is valid for rental purposes. This does not, however, apply to certificates obtained for rental purposes should you wish to sell your property.

From the above date, the EPC must be available for the perusal of any perspective tenants and a copy must be given to the tenant before a contract is entered into. Failure to so do may result in a penalty charge of £200.00 (in addition, you will still have to provide the tenant with the EPC).

RENT GUARANTEE WITH LEGAL COVER

Rent guarantee is designed to give landlords peace of mind when a tenant moves into their property. This policy is designed to cover you in the unfortunate event of a tenant not paying their rent. A Homelet policy will cover you for:

♣ Rent guarantees with 6 or 12 months cover.

♣ Specialist in-house legal and claims team to ensure your claim is paid promptly.

♣ Full legal protection included for non-payment of rent up to £25,000.

♣ No restrictions on tenant type.
For further information please see Homelet leaflet enclosed.

MANAGEMENT

Should you decide to let your property through us on a management basis, you will receive either Xpress or Extra rent guarantee free of charge for the initial term of the tenancy.

If you want to continue your cover after this initial period, simply reply to the renewal invitation we will send to you. Please see table above for charges. Or, should you wish to upgrade to a more comprehensive policy please contact us.