Letting your property can be a very attractive option for many people as it can help pay the mortgage, income may not be tazed, and you can enjoy capital gains of a rising housing market without selling up. However, there are a number of important questions which need serious consideration before entering into any agreement, including how will my tenants treat my house, and how much tax will I pay on rental income?
However, these questions need not be a worry to you if you entrust the letting to a competent and caring Lettings professional. Our sole focus at Belvoir Woking is residential letting; our service is personal yet professional and we take great care to understand the needs of the Landlord, whether this is your first time letting or a season portfolio owner.
We will be pleased to call to advise you on the market rent for your property. Rents are payable by the tenant monthly to our client account. You will be paid direct from this account and we will prepare, at regular intervals, an income and expenditure account, which you can send to the Inland Revenue.
We collect a deposit from the tenant to safeguard against damage. At the end of the tenancy we will inspect the property and the costs of any work attributed to the tenant will be deducted from the deposit.
As a landlord, it’s important that you ensure the tenants deposit is protected in a Tenancy Deposit Protection scheme within 30 days of receipt. The Housing Act 2004 came into effect on 6 April 2007, and made provision for the protection of tenancy deposits and the resolution of disputes over their return. All deposits taken for Assured Shorthold Tenancies after this date must be covered by a Tenancy Deposit Protection Scheme. Any disputes will be referred to the dispute resolution service of the Tenancy Deposit Protection scheme. It's worth noting this does not apply to Northern Ireland.
We will find a suitable tenant for your property and take up references and credit checks. Belvoir's credit check system is one of the most comprehensive used in the lettings industry.
We will prepare a legal agreement under current legislation to suit your particular circumstances. In general this will be for a period of not less than 6 months and then renewable on a month to month basis. This gives you the flexibility to re-occupy the house after giving the tenant two month's notice to quit. Similarly the tenant may terminate after the initial period by giving two month's notice.
Rates and Services
The payment of water rates, council tax, gas, electricity and telephone bills are generally the responsibility of the tenants.
You are responsible for all repairs to the property with the exception of window glass or other breakages caused by the tenants. Our contractors can carry out small repairs, or ones nominated by you, and their charges deducted from your account. We will always ask for instructions before commencing any large-scale repairs.
Building Society Mortgages
If you have a mortgage on the property to are going to let, you must inform and obtain their permission to let the property. Some lenders might charge higher interest rates for let properties and raise a service charge.
Allowable Deductions from Rent
From the total rent received in a tax year you can normally deduct, for tax purposes, the following:
- Our fees
- Fair wear and tear & repair costs.
- 10% of rent for depreciation, if furnished or part furnished.
- Interest paid to the Building Society or Mortgage Company.
- Insurance premiums.
You then pay tax on the remainder of the rent.
If you would like a more comprehensive tax advisory service we can arrange this for you.
We provide market leading rent and legal protection insurance, landlord's building insurance and landlord's contents insurance, all of which are important considerations when letting your home. You won't find more comprehensive policies and you may save money vs your current policies. Ask us for a free quote.
Our fees for managing the property are some of the most competitive to be found. For these fees we will:
- Advertise your property locally, in the press and on our easy to navigate website.
- Undertake accompanied viewings
We are a SAFEagent
Belvoir is a founding member of the pioneering SAFEagent scheme (www.safeagents.co.uk). SAFE (Safe Agent Fully Endorsed) represents firms that protect landlords’ and tenants’ money through a Client Money Protection Scheme.
Belvoir Woking is a member of NALS (National Approved Letting Scheme). NALS ensure all their members are regulated by them to provide an effective complaints redress system, backed by professional indemnity insurance, Client money protection insurance cover, and
SCALE OF CHARGES
Tenant Find Only - £480 (incl. VAT) payable for each letting where the tenant is introduced by The Agent. This will be invoiced and payable on the tenant details being accepted by The Landlord.
Let Only - £600 (incl. VAT) payable for each letting to a tenant introduced by The Agent. Payable on commencement of tenancy and deducted from the rent collected at the commencement of tenancy.
Letting and Rent Collection - 6%+VAT (7.2% incl. VAT) of the rent, deducted from the rent as received
Full Management - 8%+VAT (9.6% incl. VAT) of the rent, deducted from the rent as received.
* Above Fee's negotiable depending on property size and location.
ADDITIONAL FEES AND CHARGES:
Landlord Setup Fee - £120 incl. VAT
- Agree the market rent and find a tenant in accordance with the landlord guidelines;
- Advise on refurbishment
- Provide guidance on compliance with statutory provisions and letting consents
- Carry out accompanied viewings (as appropriate)
- Market the property and advertise on relevant portals
- Erect board outside property in accordance with Town and Country Planning Act 1990
Inventory preparation fee - Charges dependent on property size and applicable to Inventory Company.
Examples: (unfurnished) 1 Bed £80, 2 Bed £95, 3 Bed/1Recep. £120
(furnished) 1 Bed £95, 2 Bed £110, 3 Bed/1Recep. £130
Check In Fees - Charges dependent on property size (including damage report)
- Preparation of paperwork for Alternative Dispute Resolution (ADR): £60 (incl. VAT) per hour
- Duplicate Statements - £6 (incl. VAT) per copy provided
- Insurance claim handling fee - 10%+VAT (12% Incl. VAT) of cost of works before VAT
- Professional hourly rate - £60 (incl. VAT) per hour
- Re-signing fee: Nil for Full Management & Let & Rent Collect Services - £120 (incl. VAT) payable where The Agent, with your agreement, arranges a renewal of tenancy to an existing tenant
- Void management fee - £25.00 (incl. VAT) per week payable four weekly in advance of requirement
All prices subject to change after two month’s written notice
Where Full Management or Letting and Rent Collection service is cancelled during the tenancy (including any extensions) a fee of £100 will continue to be payable.
Where applicable charges are subject to the current rate of VAT.