Perhaps you will be working away and want to retain a stake in the local housing market. Perhaps you see property as a key element of your investment portfolio. Many homeowners find that letting provides them with the ability to make their next home move, whether its relocating or moving up or down the property ladder. Mortgage companies can help by offering replacement ‘buy to let’ mortgage products for this.
Whatever your reason for letting, the private rental sector in the UK gives investors, or those who have acquired second homes or a portfolio of properties, the ability to make a very good return.
“Having used LettingZone for many years we have found them to be both great value and very professional at all times.”
The location, condition and size of the property, fittings and present and potential future market forces must all be considered. At LettingZone a representative will visit your property, at no charge, to carry out an initial inspection and discuss all relevant issues with you. This allows you to ask any questions that you have or discuss any particular concerns. This also comes as part of the free initial registration service. It is important to review the condition of the property in this way, as it will affect the speed at which your property can be let. It will also help you to work out the level of return you can expect to achieve.
“We would recommend LettingZone for anyone who wants a stress free solution to renting out their property.”
At LettingZone we will extensively promote your property through internet coverage with the major property websites and a wide range of on-line portals and organisations. On-line is now the way most Tenants search for property to let and it has replaced newspapers and more traditional media channels.Once we find Tenant(s) we will take references on every person over 18 to be named on the tenancy agreement. The credit reports we receive give us the information we need to ensure the applicant is a suitable Tenant and acceptable for any legal or rent protection policies. Our aim is to secure the most suitable Tenant, at the right rent in the shortest possible time.
The legislation regarding the registration of tenancy deposits has made this an important part of any tenancy agreement and we would advise Landlords to use this facility . Our full property management services include a regular property inspection of your property during the tenancy. After this has been carried out comprehensive feedback will be provided to you and a report held on your property.
Along with Tenant feedback, these regular property inspections will identify any maintenance or repairs that are required. We can then make arrangements, on your behalf, with our local contractors or a contractor of your choice, to carry out any remedial or preventative work.
When Tenants are checked out of your property an assessment is made of any redecoration or minor repairs, which cannot be reasonably accepted as fair wear and tear against the original inventory. We will obtain estimates for any repairs and agree with the Tenant and you, the level of deposit to be withheld. We will arrange for any necessary work to be carried out prior to the next Tenant moving in. We will then arrange to take the necessary deposit off the incoming Tenant. We will collect the rent from your new Tenant monthly and transfer the funds directly to you that month. A detailed monthly statement can be provided to you, and your accountant, giving details of all transactions relating to your property.
Failure to conform to these can result in prosecution. Here are the main ones:
You will be liable to pay income tax on your net income from the property, that is the gross income less allowable expenses which are incurred from letting the property. The situation with mortgage relief is about to change and due to the potentially complex nature of this and other issues, we suggest you speak to your accountant who will be able to give you more advice.
You also need to be aware of the Non-Resident Landlord Scheme if you live part or all the time overseas, we can advise you and help with this.
If your property is mortgaged you must advise your bank, building society or other lender that you propose letting your property and obtain their written consent.
An administration fee may be charged for issuing a consent letter.
If your property is leasehold, the head lease will state whether or not you require permission from the freeholder to sublet. You will probably find that your lease will contain a clause that says you must obtain consent but that such consent should not be unreasonably withheld from you. If necessary we will be pleased to liaise with your leaseholder.
We can arrange any insurances you may feel you require to cover your legal costs and any loss of rental income. We can also supply buildings, services and even contents policies. These are arranged through our brokers with insurers who are specialists in providing policies for the rental market.
The meters can be read and final accounts prepared, even if this is for a short period of time. LettingZone will do this for you for the initial letting and also each time there is a change of tenant. During the void periods the utility services will be transferred back to you but the Tenant is responsible for the bills during the tenancy, including standing charges. It is important to note their liability clearly finishes on the date their tenancy ends. It is the Tenant’s responsibility to arrange re-connections of the telephone and internet. They must also meet any costs associated with the line rental and service charges.
There are a few other points that you should be aware of: