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Do you own Land and wish to let it?
Do you know how you are going to let it?
Would you like to let it without using an agent?
The Bright Property website hopes to offer you a straightforward approach to letting Land.
The key to successfully letting is ensuring that it is marketed appropriately, which can be
difficult, which is where Bright Property can help. To assist you in this process we have produced this step-by-step guide to the key points you need to consider when letting.
STEP 1 - CONSIDERATIONS
- Check with your mortgage lender than you are permitted to let out the land.
- If you rent the land you will need to check with the freeholder that you can sub let.
- You will be liable to pay tax on your gross income from rents.
- Depending on what you intend to let the land out for planning permission maybe required.
- Designations and agreements may affect what you can do on the land and may affect any planning application. Check if the land lies within an area that has landscape protection designation (e.g. AONB), has a conservation status (e.g. Site of Special Scientific Interest) and/or is under a land management agreement such as Countryside Stewardship. The Local Planning Authority will be able to advise.
The type of land and its condition will have an influence as to the Tenants you will attract,
the rent that you will achieve and the type of Tenancy Agreement you will grant. It may
be advisable to ensure that any facilities e.g. fencing, stabling are in good working order
from the start as it's your responsibility to ensure the property is safe.
STEP 2 - RENT & MARKETING
Rent
This will be dependant on the use, (i.e. agricultural, recreational, pony paddock) location
(rural, near to local amenities), the condition, and the features (connection to services) and
what comparable plots of land in the vicinity are achieving. By looking in the local property
pages this gives you an indication as to rental values of similar plots of land.
Be realistic when calculating the rent, if you undervalue it you could be inundated with people
looking for a bargain and then you could be disappointed when you don’t achieve the price you want.
Alternatively, by overpricing you may deter potential Tenants.
Marketing
The purpose of Bright Properties website is to give you the best tools to market your property.
All you need to do is decide which package you think will be most appropriate for your property,
take photographs, measure the rooms and identify the key features.
Once this information has been entered into your Bright Property advert then you are ready
to go.
As soon as the board is received make sure that you put it up as apart from the website
this is one of the most effective ways of potential buyers identifying your property.
STEP 3 - VIEWINGS
As soon as your advert is live, be prepared to respond to enquires quickly, as a delayed response
may result in a lost Tenant.
As with most Letting Agents you will be expected to conduct the viewing. Usually viewings are
by appointment so that you can ensure that your property is presentable and that you are available.
Things to bear in mind:
- Be aware that you are allowing strangers onto you land and therefore make the necessary
provisions.
- Think of questions that you may wish to ask your prospective Tenants such as:
- What do they wish to use the land for?
- What length of tenancy are they looking for?
- Demonstrate the best use of a space – i.e. remove any rubbish
- Print off Bright property’s online details so that you can give to potential Tenants.
- Focus on the positive aspects of the land, i.e. access, connection to services, stables.
- It is worthwhile getting feedback from viewers as to what they liked disliked about the land
so that you know what changes you can make, so follow up the viewing with a phone call or email.
STEP 4 – TENANTS CHECKS
It is advisable to take up prospective Tenant’s references and may give and indication in most
cases a Landlord will take up a prospective Tenant’s reference. Therefore be prepared to
provide the following:-
- Employers’ Details - our title, salary, payroll number, a contact at work, and name of
previous employer.
- Bank Details - bank name, address, your account number, sort code, account name.
- Personal References – People who have known you for a number of years (excluding family members)
- Previous Landlords – Details of where you have lived for the last 3 years.
- Checks with Credit reference agency may also be carried out.
http://www.tenantverify.co.uk
http://www.rentchecks.com/
It is not unknown for administration charges to be made in respect of obtaining tenant checks and passed on to the potential tenant.
If the Tenant is not able to provide sufficient referees or fail the reference checks you
can ask them to provide a guarantor. This would be some who is willing to accept the
financial and legal risk of you liaising in rented accommodation if you fail to perform the
obligations of your tenancy, i.e. – paying the rent.
STEP 5 – TENANCY
It is advisable that the letting is documented, setting out the rent, length of tenancy and
both parties responsibilities. Depending on the use of the land and the facility that are being
let with it, will determine the type of Tenancy Agreement. For example agricultural land will be
let on Farm Business Tenancy and land for grazing horses may be let on a fixed term tenancy.
Once the offer is accepted and negotiation concluded you then need to advise or appoint your solicitor if you are using one. Alternatively you could purchase a ready made Tenancy Agreement
http://www.lawpack.co.uk/landlord_and_tenant.asp and
http://www.clickdocs.co.uk
Fixed Term Tenancy
Fixed Term Tenancy are for a specified period (e.g. two years) and can include a break clause
allowing either party to end the agreement by serving notice.
Other circumstances
If the land is let with stabling a more comprehensive agreement may be required to cover this.
Similarly if an occupier uses land for business rather than recreation, another form of agreement
is relevant, because separate legislation applies.
Tenancy Agreements
An agreement usually starts with a definition of the particulars. The following provides an
indication of what these may include:
- Names and addresses of the Landlord and Tenant
- The date the Tenancy Agreement commences.
- The length of the Tenancy Agreement.
- Break Clause - A clause allowing either party to serve notice to terminate the Agreement
should they wish.
- Location and approximate size of the land with reference to an accompanying plan
marking the site boundary. An Ordnance Survey plan with the plot of land outlined will suffice.
- Rent – how and when it will be paid, e.g. standing order, direct debit, or cheque. Weekly,
Monthly and Quarterly. What would happen if it is not paid and the amount of interest that
would be charged.
- Outgoings or example water rates, electricity which the Tenant would be responsible for.
- Rent Review – the tenancy will state how the new rent will be reviewed – e.g. based on
Comparable evidence or another mechanism such as linked to the Retail Price Index. When
it is going to be reviewed, if time is of the essence. What happens if an agreement cannot
be reached which dispute resolution method will be used. Arbitrator or expert.
- Use – e.g. agricultural, pony paddock, paint balling.
- Assignment/Subletting – whether either or both will be permitted.
- Rent Deposit – whether a deposit is required. It will need to be agreed when it will be repaid
and the circumstances it will not be repaid.
Tenant’s Right and Responsibilities
Depending on the use the Tenant will usually be responsible for:
- Paying the rent on time.
- Paying all bills responsible for i.e. electricity, gas, Business Rates, etc.
- To repair any damages caused.
- Keep the land secure.
- Keeping land clear of injurious weeds, including ragwort, broad-leaved dock, curled dock,
creeping thistle and spear thistle.
- Preventing damage to the trees and fences.
- Maintaining condition of and repairing when appropriate, gates, fences, hedges and
trees growing on the land.
- If the land has been let for grazing ensuring the land is used only for that purpose
and by an appropriate number of livestock.
- A welfare clause could be included in an agreement to ensure livestock is kept in good
condition.
- Obtaining Landlord consent prior to storing vehicles/equipment on the land or putting
up any fixtures.
- Having appropriate liability insurance for any injury or damage to third parties
caused by the livestock whether on or off the land.
- Ensuring any public or private right of way is not obstructed.
Landlord Rights and Responsibilities
- To seek possession if the Tenant is in breach of the agreement.
- To receive payment of rent.
- To enter the property in accordance with the terms of the tenancy
- Renewal of fences and gateways if they have become beyond repair unless the Tenant has
damaged them.
BOTH PARTIES MUST SIGN THE AGREEMENT IN THE PRESENCE OF A WITNESS.
Tenancy Deposit
It is usual for a deposit of between one and two months rent to be held during the tenancy.
The purpose of the deposit is if the Tenant to comply with the obligations of the Tenancy
Agreement such as keeping the premises clean the Landlord can use the money to remedy the
breach. The Tenancy Agreement should set out who is to hold the deposit (e.g. Agent or Landlord),
whether interest is to be paid or not, what the deposit can be allocated for and the end of tenancy
procedures and timescales for its refund.
Inventory
If you are letting the land with fixtures or fitting it is important to list all the items
included. You may even wish to record the condition of the land and fixture and fittings with
photographs or a schedule of condition. By having a full inventory this will hopefully eliminate
any misunderstandings at the end of the tenancy. Both parties should agree and sign the inventory.
Rent Payment
Decide how you wish the rent to be paid – standing order, direct debit etc.
If using either of these methods ensure this is place. Usually the first months rent and the
deposit is paid on the day the tenancy commences. Agree how this is going to be paid and it
would be advisable to give the Tenant a receipt.
STEP 6 – PRIOR TO LETTING
- Read all meters.
- Advise utility companies (if applicable – water for pony paddock)
- Show the Tenant where all the vital connection points for gas, water and electricity are.
(if applicable)
- Provide sufficient keys for all gates etc.
- Advise what to do in an emergency and who to contact.
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