Guidance Notes for Landlords

Tenancies

The types of Tenancy Agreements and notices used by "In London Properties". have been approved by a panel of Solicitors and providing the terms are complied with correctly, the Landlord is guaranteed possession of his property at the end of the Tenancy.

A Tenancy Agreement must be for a minimum period of 6 months (unless otherwise stated). If at the end of this period the Landlord does not wish the Tenants to remain, notice must be served in the prescribed form to the Tenant at least 1 months before the termination of the Tenancy (in London Properties serve this notice at the commencement of the Tenancy). If the Landlord is happy to let the Tenancy continue after the 6 months he may do so, and the Tenancy can only then be terminated by the Landlord giving 2 months notice, or by the Tenant giving whatever notice period has agreed with him prior to the commencement of the Tenancy.

For further information on Tenancy Agreements, a Solicitor should be consulted.

Our firm and our Solicitors take no responsibility whatsoever in relation to the use of the Tenancy Agreement prepared by this firm.

Consent to Lettings

Prior to commencement of any Tenancy, the Landlord should ensure that consent for letting has been granted by all applicable authorities including Head Lessors, Mortgagees, Banks etc. in order to avoid delays in granting Tenancy Agreements.

Condition of the Property

It is the Landlords responsibility to ensure that the property is well maintained. Prior to the commencement of the Tenancy, The Landlord should make sure that the structure, plumbing wiring etc. are in good order.

The standard of property required by prospective tenants is high we therefore suggest the following:-

If your property has a gas appliance, then it is The Landlords responsibility to ensure that the pipework and the installation have a 'safety check' for every gas appliance to comply with the safety regulations that became effective in October 1994. The check must be carried out prior to any letting and at least every twelve months thereafter by an engineer approved by the HSE (currently only Corgi registered). A record must be kept of all safety inspections and the result must be available to the Tenant on request.
Breach by the Landlord or the Managing Agent of these regulations is a criminal offence and penalties for non-compliance could possibly be a fine of up to £20,000. for an incident could bring charges for manslaughter and in severe case's imprisonment
The decor should be of neutral colouring.
The carpets should be as plain as possible and be in good and clean condition.
The kitchen should be fully equipped with a washing machine and dishwasher where possible.
The Consumer Protection Act 1987 Section 12(1) and the 1988 Regulations make it an offence to supply/provide any furnishings to which the Regulations apply, (all soft furnishings and foam filled furniture) unless that furniture meets what is known as the 'cigarette/match test' and must meet the Fire Regulations Requirement and have a non detachable label to that effect. The Regulations basically apply to all upholstery and upholstered furnishings, loose fittings, permanent or loose covers, manufactured after 1950. It is a criminal offence to rent a flat with furniture that does not comply as above and doing so carries a punishment of six months imprisonment or a fine to a maximum of £5,000 or both! A Landlord letting their home for a 'temporary' period and not in the course of business, has a moral, (not legal), responsibility to comply. All second homes or investment properties must comply.
Prior to letting the property, it is essential that all utilities i.e. gas, electricity and telephone are connected and that all appliances are in working order.
If the Tenant is to maintain the garden, then all garden tools should be provided. Up until the commencement of the Tenancy, it is the Landlords duty to see that the garden is clean and in good order.
The Landlord is responsible for ensuring that the property is clean and tidy throughout including the windows, prior to the commencement of the Tenancy.

Finding a Tenant

Upon receipt of confirmation of instructions, the property will be marketed in the following manner.

The property will be offered to all our current prospective tenants.

Advertised in the local and/or national press as required as well as being placed on this website.

Tenants References

When a letting has been agreed the following references are taken: Bank, employers, previous landlords (where applicable), character and guarantors (where applicable).

For Companies: Bank, Solicitor and Accountant references are usually obtained.

Tenancy Agreement

Unless instructed otherwise, we use a standard form of Tenancy Agreement in respect of all lettings, covering most eventualities though we recommend that our agreement is submitted to your solicitor for approval (see the "Tenancy" section of these notes).

Landlords Solicitor

Landlords instructing their own solicitors to prepare an agreement must be responsible for their solicitors' fees.

Rent

At the commencement of the tenancy we will collect a deposit (usually one months rent) and an initial rental payment. If we are not collecting the rent monthly, payments may be made to the landlord either by standing order or by cash/cheque. The tenant's rental will be inclusive of any maintenance/service charges to the property and therefore the landlord remains liable for making these payments.

Rent Remittances

Present banking arrangements are such that it is necessary for us to allow approximately seven working days for rent cheques to be cleared before transferring money received to a client account.

Rent Arrears

The Landlord is responsible for any legal costs incurred. "In London Properties" cannot be held responsible for any Tenants breach of contract or non payment of rent, or any costs incurred in obtaining such.

Deposit

The deposit taken from the tenants is returnable when the agreement expires, subject to the condition (allowing for everyday ware and tear) of the property and all furniture/fixtures/fittings at the time of the final inspection made by the landlord. Providing there are no disputes over dilapidation, the necessary disbursements will be made out of the deposit. Should there be need for estimates or replacement of goods, the landlord is responsible for this, unless we are managing the property. (See management notes.)

Inventory

It will be necessary for a full inventory of furniture, fittings and the condition of the premises to be taken for attachment to the agreement to be signed by both parties. We do not employ inventory clerks, but we can, if required, instruct established independent firms to act on your behalf with their fee being your responsibility. Whilst care is taken when instructing inventory clerks, we cannot accept any liability for errors or omissions on their part.

Insurance

Make sure that your property and contents are adequately insured and cover is index-linked to keep up with inflation. It is advisable to notify you insurers that you will be letting the property, we advise that you discuss these matters with your insurance broker.
Utilities

We will inform the Gas and Electricity Boards British Telecom and the relevant council, (for council tax) and will instruct the Tenant to sign his/her own agreements with the suppliers. It will be the landlord's responsibility to terminate all previous agreements with the services before the premises are vacated, we strongly suggest that you have the meters read the day of vacation and arrange all final accounts to be settled. In the event of non payment of services "In London Properties" can not be held responsible.

Redirection of Mail

"In London Properties" cannot undertake the responsibility of forwarding mail and it is suggested that Landlords requiring this service liaise directly with the Post Office.

Appliances

All appliances and services including the central heating (where fitted) should be checked prior to the commencement of the Tenancy.

It is also recommended that a folder should be compiled with all the relevant information including operating instructions and the guarantee cards which should be given to the Tenant or "In London Properties" as applicable at the commencement of the Tenancy.

Emergencies

It is important that, in the case of non management lettings the landlord should provide the Tenant with the names of service engineers, whom the Tenant may find it necessary to call upon in an emergency or otherwise the Landlord should authorise the Tenant to carry out works at their discretion in an emergency or by telephoning the Landlord direct to discuss any problems. In the case of management lettings, our firm can call upon the services of most trades to attend to urgent and other repairs promptly.

Legal Information

The following conditions must be satisfied for a Tenancy to be set up correctly:

The Agreement must be for a fixed term and a minimum of six months only.
The letting must be to a new Tenant i.e. the Tenant should not have lived in the property before the commencement of the Tenancy.
All relevant notices must be served on the Tenant by the landlord before the commencement of occupation.
Since the 6th April 1996 the new Self-Assessment Rules will apply for all taxpayers. Under Self-Assessment, overseas Landlords will be allowed to submit their own Tax Returns of UK rental income and can apply for Revenue permission to have their rental income gross, that is without deduction of tax. The Landlord must apply to the FICO office of the Inland Revenue for the relevant form and must return the completed form to that office. The Landlord must complete this form as neither the Agent nor their Accountant/Tax Consultant can fill out the form on their behalf. Providing the overseas Landlord has a good tax history and their affairs are up to date, they will be issued with an exemption certificate. A copy of the certificate will be sent to us by the Inland Revenue thereby enabling us not to deduct tax at source. If the Landlord changes Agents, they must notify the FICO office of the Inland Revenue, who will issue a new exemption certificate to the second Agent.

If we are not in possession of a tax exemption certificate from an overseas Landlord, then we will be obliged to deduct 25% from all rent received less any allowable expenses paid on behalf of the Landlord. All tax deducted will be paid to the Revenue on the stipulated quarter days. In addition, we will be obliged to submit an Annual Return by the 5th July each year. This return will include the name and address of the overseas Landlord and the total rent received for the tax year.

Where a Landlord instructs a Tenant to pay the rent directly to him, then we will be obliged to notify the Tenant that they will be liable to deduct tax in accordance with the above regulations and we will also be obliged to notify the Inland Revenue of the arrangement.

Management Service Notes

Rent Collection:

The collection of monthly rent is credited directly to the Landlords bank, minus any outgoings that may have occurred during that period.

Statement of Accounts:

These are made to the Landlord monthly/quarterly as the rent is collected showing a list of expenditure.

Outgoings:

If requested we pay current outgoings such as Water Rates, Insurance Premiums and any other service charges and/or Maintenance charge demands or estimates where applicable. The Landlord must advise the various authorities to put bills in their name C/O "In London Properties".

Repairs:

We shall deal with the day to day management matters including any emergency and routine maintenance up to £200 for any one item. Only repairs in excess of this amount will be referred to the Landlord for approval. If the rent is being paid to the Landlord, then we will require £200 from such Landlords.

Estimates:

For building work in excess of £200 estimates will be obtained and submitted to the Landlord for approval before instructing any trades person.

Service Contracts:

It is essential that all heating systems, electrical appliances etc. are serviced annually and to this end we insist that the service contracts are taken out by the Landlord prior to the tenancy and maintained annually thereafter. All appliances must be serviced prior to the tenancy commencing.

Void Periods:

Please note that our management service does not apply when the property is not let.

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