- It helps pay the mortgage
- It gives you options for later
- It keeps you on the home ownership ladder
- It is a good way of building a pension
- It is a medium to long term investment
There are a number of important questions, which need serious consideration before entering into any agreement:
- How will tenants treat my house?
- What if I suddenly need my house back?
- Will my mortgage provider allow me to let out the property?
- Tax – you will be liable for both income tax on the rent you receive and, depending on the length of time you rent out your property, you may be liable for Capital Gains Tax should you later sell the property.
- Complying with government legislation.
Considering renting out your property can seem a little overwhelming, which is where we come in. We can outline all the legal and financial obligations and responsibilities that come with being a Landlord and holding an investment property. We can advise you on the different levels of service we can provide, which can be tailored according to the level of involvement you wish to have.
We can advise you on the likely level of rent your property will achieve on the lettings market. Once a tenant is secured and has moved in, rent is usually paid monthly in advance but occasionally is paid quarterly, six monthly or annually in advance. Once the rent is received in our client account and any agreed deductions made i.e. our fee; maintenance works carried out to the property or, occasionally for Landlord’s living overseas, tax, we transfer the balance of rent to your bank account. For our managed clients we provide monthly statements detailing income and expenditure (TK as well as annual statements.
We collect a deposit equivalent to five weeks rent, which is held in the Deposit Protection Scheme for the duration of the Tenancy.
We provide thorough referencing on potential Tenants, which include credit; employment and, if any, previous landlords.
We will prepare a legal agreement compliant with current legislation. Generally this is for a period of not less than six months and then either renewable on a fixed term or periodic basis.
Rates and Services
The payment of utilities are the responsibility of the Tenant.
The payment of any ground rent or service charges are the responsibility of the Landlord.
It is the Landlord’s responsibility to pay for repairs to the property with the exception of any window glass breakage or damage caused by the Tenant.
If we manage the property on your behalf, we will always ask for your instructions before commencing any large-scale repairs.
All repairs; routine maintenance; safety checks and inspections carried out by our approved contractors are non-profit making as we do not charge a mark-up on our contractors invoices.
Please check with your accountant as to your tax situation with regards to the rent and what costs you will be able to offset.
It is important that your property is protected by insurance. We can provide you with information on rent and legal protection insurance as well as Landlord house building and home contents insurance.
As we are situated in a city within proximity of a military base, we have expertise in letting properties for Landlords who work in the armed forces.