Aspen Guidelines for Letting

Residential Properties

Member of UKALA - United Kingdom Association of Letting Agents

INTRODUCTION

Aspen Properties is a family run business started in January 1993.

John, Angus and Jane Watson have all had many years experience in the Lettings and Property Management industry. The company has built its reputation with both landlords and tenants alike, taking the stress out of renting and giving a professional, friendly service.

MARKETING

The market for good quality rented property is high and over the past few years there has been a definite increase in demand. We offer a free valuation service, without obligation, and offer specific advice regarding the letting of your property. In general, the better the condition of the property the easier it will be to let, and the higher the likelihood of the property being well looked after. Upon receiving instruction from you, we will market your property on the internet, through our own website and well known property portals ie. Propertyfinder.com and findaproperty.com. Also advertising in the local press, displaying in our window and circulating details of our property list to our register of applicants. We operate within a 30 mile radius of Cullompton.

FINANCIAL ADVICE

A mortgage is likely to be the biggest financial commitment you ever make. Selecting and arranging a mortgage, especially on a Buy to Let basis, in a tax efficient way can be a minefield and potentially very daunting. It is key to receive full independent advice to ensure that your mortgage fits your goals, objectives and your budget. We are associated with a firm of Independent Financial Advisers, Forward Financial Planning, who can research the whole market place to find the most suitable mortgage to meet your needs. They are also happy to offer advice on other financial matters, such as making your savings investments and pensions work harder.

MORTGAGE CONSENT

If your property has a mortgage, consent must be gained from your Mortgage Company, Building Society or Bank. They will then provide you with written permission and may also impose some conditions.

HOUSEHOLD INSURANCE

You must inform your household insurance company and discuss the necessary insurances required.

RENT GUARANTEE & LEGAL EXPENSES INSURANCE

There is an insurance policy available to cover loss of rent and legal expenses incurred when evicting tenants who do not pay their rent. With our thorough referencing procedure this situation arises very rarely. We can give you more details upon request.

INLAND REVENUE

You should contact your Tax Office to ascertain any tax liabilities. If you are travelling abroad you may be able to apply for exemption. Where the landlord resides abroad, the Commissioners for the Inland Revenue will hold us, as your Agents, responsible for the payment of any tax which arises on rents collected by us on your behalf, unless we have clearance by the authorities to pay gross (ie. without tax deduction). The net rental (rents less allowable expenses) is subject to tax under British law.

With effect from 5 April 1996 new “self-assessment” rules have been put into place. Aspen Properties are registered with the Inland Revenue and are obliged to account quarterly and annually to the Inland Revenue, NRL [Non-Resident Landlords] Section showing all receipts and payments for our overseas clients. Further details are available on request.

TENANT DEPOSIT SCHEME

In accordance with the Housing Act 2004, all landlords and agents are required to join a statutory deposit scheme if they take deposits from tenants when letting their property. This became law on 6th April 2007 and affects all Assured Shorthold Tenancies commencing from then.

Tenants’ deposits will be safeguarded and they will get all or part of their deposit back if they have kept the property in good condition and are entitled to it. The scheme offers alternative ways of resolving disputes which aims to be faster and cheaper than the current Court based system.

Aspen has chosen to adopt the “Custodial Scheme” which will be run by Computershare Investors Services plc, and called The Deposit Protection Service [DPS]. This is a free service and available to all landlords and agents. Their website is www.depositprotection.com

As a result of this new legal requirement we feel that a detailed Inventory and Schedule of Condition taken at the start of the tenancy is vital, to provide a benchmark by which we can measure any unfair wear and tear on the property. Without adequate proof you may not be able to claim any of the tenant’s deposit against damages caused during the tenancy. The cost of this inventory is tax deductible.

Both tenant and landlord have to agree within ten days of the end of the tenancy, for any deductions to be taken from the deposit, before the DPS returns the deposit to the tenant. If this cannot be agreed by both parties there is a free arbitration service that will automatically be implemented. This decision will be made within ten days and is binding.

FURNISHING the PROPERTY

There is no difference to the amount of rent asked if the property is furnished, part-furnished or unfurnished. However, there are Fire and Furnishing, Gas and Electrical Equipment Regulations which must be carefully followed. The Landlord is held responsible for any item left in the property to be safe and in good working order.

Copies of the Regulations are enclosed:

The Fire & Furnishings (Safety) Regulations 1988
Gas Safety (Installation & Use) Regulations 1998
The Electrical Equipment (Safety) Regulations 1994

If the property is to be left Unfurnished we would advise that a cooker, carpets, curtains and light fittings are provided. Items such as a fridge and a washing machine may be left as long as they are in good and safe working order and comply with the necessary regulations. Many tenants have their own and therefore may not require them. Any electrical appliances left included in the tenancy, must have instruction booklets.

If the property is to be left Part-furnished we would advise that carpets, curtains and light fittings are provided. Items of furniture may be left, but these items must comply with the regulations.

If the property is to be Furnished then we would advise a basic amount of furniture is left including enough beds for the amount of tenants entering the property. Basic equipment left in the kitchen including a cooker, fridge, and washing machine and sufficient china, glass and cutlery for the amount of occupants. Linen and bedding is not required, indeed many tenants prefer their own. Please note that all the furniture and fittings must comply with the regulations.

GAS

Where the property has gas appliances an inspection and Certificate of Safety must be provided at the commencement of the tenancy, unless the property is brand new and has not been occupied.

CONDITION of the PROPERTY

A thorough inspection of the property is recommended to ensure that the structure, roof, plumbing and wiring etc. is in good order. The property has to be safe for the tenant’s occupation and if the landlord is aware of any aspects that might be hazardous e.g. pond in the garden, these need to be notified to us and the tenants. Due to the potential hazards of some equipment e.g. garden strimmer we would recommend that these are not left in the property. If any appliances are left at the property, it is essential to leave the instruction leaflets. The landlord should attend to any internal or external decorations and ensure that the property is clean throughout, including windows both inside and outside. Carpets, curtains, blankets, duvets, pillows, bed covers and loose covers should be professionally cleaned. Where necessary, all works of repair should be completed prior to the commencement of the Tenancy. It is the Landlord’s obligation to maintain the aforementioned throughout the term of the Tenancy subject to any term on the contrary in the Tenancy Agreement mutually agreed by the parties.

Some landlords have the property professionally cleaned at the start of the tenancy, and then agree with the tenants to have the same company clean the property on vacating.
Aspen Properties do not inspect attics or cellars.

TENANTS

The Landlord must instruct Aspen Properties as to the tenants’ restrictions e.g:

Children
Students
Sharers
Smokers
Pets
Housing Benefit

You may need to check with your insurance and or mortgage company, as they sometimes impose restrictions as to the type of tenant that they will accept. The tenant must be fully vetted through our professional referencing company. The tenant must pay one month’s full rent in advance, deposit and fee before taking up residence. The deposit equivalent to 6 weeks rent will be taken by Aspen Properties and forwarded on to the DPS within fourteen days of the start of the tenancy.

TENANT’S OBLIGATIONS

The tenants are subject to numerous requirements which are covered in the Tenancy Agreement. Some of them are:

Pay the rent on time
Keep the property clean, tidy and in good order
Not decorate the property without permission
Not disturb or be a nuisance to the neighbours
Not keep pets without permission
Notify us if they are going to be away for any length of time
Notify us of any damage or repairs that are needed

TENANCIES

We draw up the appropriate tenancy agreement. Usually it is an Assured Shorthold Tenancy, with an initial period agreed by both landlord and tenant. This is usually six months but can be varied. At any time after the initial fixed term period has expired and the tenant wishes to vacate the property he is required to give one month’s notice in writing to leave. The landlord is required to give two months’ notice in writing, should he seek possession of his property.

HOUSES IN MULTIPLE OCCUPANCY

Recent legislation requires all houses in multiple occupation i.e. a property on three floors and with five or more adults in residence, to have a licence from the Local Authority. We would be happy to discuss this in more depth if required.

RENT PAYMENT

The tenant pays the rent directly to us, preferably by standing order, then we pay you by automatic transfer within 15 days. If the rent is paid by cheque, remember it can take several days to clear and pay you. If there are any accounts to be paid up to £100.00, we pay them from our account, then bill you or take them off your rent cheque. A full statement is provided each month.

SMOKE DETECTORS

We recommend that a smoke detector is fitted in the hall and on every floor of the house. We will check these at the start of each tenancy and make it a condition of the tenancy that the tenant checks the smoke detectors on a regular basis, replace the batteries when necessary and inform us if they go wrong. A small dry powder Fire Extinguisher/Fire Blanket is advisable in the kitchen.

CHIMNEYS

We also strongly recommend that any open non flue chimneys are swept on an annual basis and this may also be a condition of your house insurance.

MANAGEMENT of the PROPERTY

During the term of the tenancy we are responsible for the day to day running of the property, and are the first point of contact should any problems arise. The landlord is responsible for the upkeep of the structure of the property and general maintenance. Repairs to fixtures and fittings belonging to the Landlord are his responsibility, unless there is obvious misuse of the above by the tenants.

PREFERRED CONTRACTORS

Landlords should inform Aspen Properties of any preferred contractors for maintenance, making sure the names, addresses and telephone numbers are supplied.

EMPTY PROPERTIES

The Landlord is responsible for the property whilst there is no tenant, unless a special arrangement is made with Aspen Properties. A charge will be made.

UTILITIES

Landlords must inform the utilities companies of the change of account name.
Although it is clearly stated in our tenancy agreement that the tenant is to register and pay Council Tax, we would strongly recommend that you contact the local Council Office so that no misunderstandings arise. We also inform the utilities and local authorities of new tenants
The tenants should be responsible for payment of Electricity, Water, Sewage, Gas, Oil, Telephone, and Council Tax.

KEYS

The Landlord must ensure sufficient keys are cut to provide Aspen Properties with one set, Landlord with one set and tenants with two sets.
The tenant will be held responsible for any lost keys, resulting in the locks being changed at the property, at the tenant’s expense.

Before Leaving The Property Remember:

Inventory/Statement of condition (must be checked)
Give final readings to: ELECTRIC, GAS, WATER, PHONE, Local Council.
Advise your: Insurance Company, Mortgage Company, Post Office to redirect letters.
Check Oil level.
Leave instruction manuals for: cooker, washing machine, tumble dryer, fridge/freezer, microwave, dishwasher, central heating.
Leave a note informing tenant of dustbin collection day.
MAKE SURE THE WATER STOPCOCK IS TURNED OFF. (Advise us of its location)

CONTENTS UNDER HIRE PURCHASE OR RENTAL HIRE

The Landlord should cover all rental hire payments and hire purchase instalments for the period of the Tenancy.

COURT & TRIBUNALS

An application for the assessment of a Fair Rent or the appearance before the Rent Officer, Rent Assessment Committee or any other court or tribunal will be by special arrangement only. An additional charge will be made for this which is payable by you at the rate of £50. per hour plus disbursements.

DEBT RECOVERY

Should the need arise, we are associated with a Debt Recovery company.

ON-LINE COMMUNICATIONS

For those landlords with internet connection facilities, it would be helpful to give Aspen your e-mail address, so that we can efficiently keep you informed about your rental portfolio and any updates or changes in the industry.

For further information on our fees, please contact our office on 01884 35775 or e-mail us on: enquiries@aspenproperty.co.uk