Letting Residential Property
Other Guides » Residential » Buying » Selling » Renting » Letting » Commercial » Buying » Selling » Renting » Letting » Land » Buying » Selling » Renting » Letting Download PDF | Do you own a residential property 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 residential property. The key to successfully letting is ensuring that it is marketed appropriately, which can be difficult. This 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
The type of property and its condition will have an influence as to the Tenants you will attract. As a Landlord you will need to ensure that the property is in a reasonable condition. Therefore it is advisable to ensure these are in good working order at the start. You will be responsible for the following:
STEP 2 - RENT & MARKETING Rent This will be dependant on the condition of the property, whether you are offering it furnished part furnished or unfurnished and what amenities it has to offer. Looking in the local property pages this gives you an indication as to the rental value of similar properties. Be realistic when pricing your property, 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. Or alternatively by overpricing you may detract potential Tenants. Marketing The purpose of Bright Property’s 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, decide what is to be included 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 straightaway 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:
STEP 4 – TENANTS CHECKS It is advisable to make some checks as to the identity of your prospective Tenants. The following provides a guideline of the checks to be made:-
STEP 5 – TENANCY It is important to ensure that you document the letting to a Tenants setting out the rent and parties responsibilities. The most common tenancy agreement used is an Assured Shorthold Tenancy. This type of tenancy offers the most flexibility to both Landlord and Tenant; has straightforward notice procedures for bringing the tenancy to an end and a special Accelerated Possession court procedure should Tenants fail to vacate. “Joint and Several” Responsibility If there is going to be one (adult) or more persons living in the property, the tenancy should state “jointly and severally” responsible. Therefore each Tenant is equally responsible and liable for the payment of all rents, all liabilities falling upon the Tenants during the tenancy and any breach of the Agreement. There are a many ready made tenancy available to purchase if you do not want a solicitor to draft one. http://www.clickdocs.co.uk/ http://www.lettings-landlords.co.uk/info/tenancy_agree.html “Assured” Tenancy There are other tenancies such as the “Assured” tenancy. This gives Landlords very limited circumstances in which possession can be obtained and the Tenant may be able to obtain long term security tenure 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 does not comply with the obligations of the tenancy agreement such as keeping the premises clean, paying the rent, the Landlord can use the money to remedy the breach. The Tenancy Agreement should set out:
With effect from the 6th April 2007 all deposits, up to the level of £25,000, taken by landlords for Assured Shorthold Tenancies in England and Wales must be protected by a tenancy deposit protection scheme. Tenancy Deposit Protection has been introduced to ensure good practice in deposit handling, so that when a tenant pays a deposit, and is entitled to get it back, they can be assured that this will happen. It will also encourage tenants and landlords to have in place, from the outset, clear agreement on the condition of the property through the use of inventories. The landlord not the tenant – will have the option to choose whether to safeguard the deposit in the custodial or insurance-based scheme. A landlord will have 14 days to safeguard a deposit from the day he receives it. The landlord will have to provide the tenant prescribed information about the scheme safeguarding the deposit within 14 days. To avoid disputes having to go to the courts, both schemes will be supported by an Alternative Dispute Resolution (ADR) service, although the use of this will not be compulsory. When the landlord and tenant agree how the deposit should be returned, in full or in part, it must be paid back within 10 days. The Government awarded contracts to three companies to run the tenancy deposit schemes:
Landlords that fail to use the scheme could be faced with a fine of three times the deposit if the tenant takes the matter to court or the landlord is unable to use ‘notice only’ possession procedure for regain possession of the property if there is a breach. For further information go to http://www.tenantdepositscheme.co.uk/ Inventory If you are letting the property part or fully furnished it is important to list all the items included even down to the last teaspoon! You may even wish to record the condition of the premises with photographs. 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. BOTH PARTIES MUST SIGN THE AGREEMENT IN THE PRESENCE OF A WITNESS. STEP 6 – PRIOR TO LETTING
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