Leicester Lettings Co

Introduction

The residential lettings market has changed significantly over the last few years due to increased property prices and new legislation. Leicester Lettings Co. understands that your property is a major investment in your future which, like all investments, requires careful management.

We have experience in dealing with both first time landlords and those who have developed their own property portfolios, so whether you own one property or ten, you can be sure that the advice provided by Leicester Lettings Co. is second to none.

Leicester Lettings Co. will provide landlords with the knowledge they require to make the most of their investment.

In general a Landlord is responsible for:

Repairs to the structure and exterior of the property, heating and hot water installations, basins, sinks, baths and other sanitary installations
The safety of gas and electrical appliances
The fire safety of furniture and furnishings provided under the tenancy
Ensuring that the property is fit for habitation
Repairing and keeping in working order the room and water heating equipment
The common areas in multi-occupancy dwellings

The Lettings Process & Our Services

The first step is to have your property valued. This involves booking an appointment for one of our experienced Valuers to visit the property. The Valuer will provide recommendations on how to get the best rental yield from the property, which may include observations relating to the general décor and presentation. In general the better your property is presented in terms of décor and furnishings (if furnished) the quicker it will let and the higher the rental price achieved. With a fiercely competitive market, there is much to choose from and a property in a poor state will be low down on any prospective tenants list

The Valuer will also discuss the two services provided by Leicester Lettings Co., namely ‘Full Management’ & ‘Introduction Only’. Both services benefit from the following:

Free property appraisal & rental valuation
Free Internet advertising including Rightmove & Find a Property
Free ‘To Let’ board
Free local press advertising (Leicester Mercury ‘Homes to rent’ supplement)
Accompanied viewings
Tenant referencing through CCV Letting Agent Solutions
Assured Shorthold Tenancy preparation & supporting documentation

Further to the above, the ‘Full Management’ Service also includes the following:

Compile a full inventory and condition report including digital photographs
Deal with tenant enquires and problems
Arrange necessary gas and electrical inspections
Inform utility companies and local council of changes in responsibility
Collect rent and issue monthly statements to landlord for the duration of the Tenancy
Transfer rent direct in to the Landlords bank account
Periodic inspections
Perform a final inspection at the end of tenancy and assess any damage before returning the deposit
Deals with day-to-day maintenance matters and repairs
Protects the deposit through The Dispute Service Ltd
Issues Legal Notices, if required to do so
Purchases white goods / furniture on landlords instruction

The ‘Full Management’ Service is designed to make life easier for Landlords.

The ‘Introduction Only’ Service includes collection of the first month’s rent & damage deposit, setting up a Standing Order for future rental payments and key release. A comprehensive Inventory Service is available at an extra cost.

The ‘Introduction Only’ Service is ideally suited to those Landlords who want a more hands on approach with their property and tenants.

Tenancy Deposit Protection

As of 6th April 2007 there is new legislation for the protection of deposits taken in relation to any Assured Shorthold Tenancy entered into on or after 6th April 2007 in accordance with the Housing Act 2004. Each deposit taken must be protected with one of the three Government approved tenancy deposit protection schemes.

For an overview of the Tenancy Deposit Scheme from the Department of Communities and Local Government please refer to: www.tenancydeposit.gov.uk

The Lettings Co. (C.P) Ltd is registered with The Tenancy Deposit Scheme (TDS), an insurance backed deposit protection and dispute resolution scheme administered by The Dispute Service Ltd.

Gas Safety (Installation & Use)

All Landlords have a statutory duty to ensure that gas installations and appliances supplied with their properties are safe. In the case of residential properties, this must be achieved by having annual Gas Safety Checks carried out by a registered CORGI installer.

A copy of the CORGI safety certificate must be given to the tenant on entry and within 28 days of the annual check. A copy must also be retained by the landlord for 2 years.

Click here to download the Government publication relating to Gas Safety

Energy Performance Certificates (EPC)

As of the 1st October 2008, new legislation came into effect stating that all properties that are being offered up to rent must have a valid Energy Performance Certificates, and it is the landlord responsibility for ensuring a valid certificate is made available to all prospective tenants. The EPC and recommendation report must be made available free of charge by a landlord to a prospective tenant at the earliest opportunity and no later than:

When any written information about the building is provided in response to a request for information received from the prospective tenant; or when a viewing is conducted; or
If neither of those occur, before entering into a contract to sell or let.
The landlord believes that the prospective tenant is unlikely to have sufficient funds to purchase or rent the property or is not genuinely interested in renting that type of property; or
The landlord is unlikely to be prepared to rent out the property to the prospective or tenant (although this does not authorize unlawful discrimination)

An EPC for rented property is valid for ten years..

The only person who is able to produce an Energy Performance Certificate is an accredited energy assessor.

Leicester Lettings Co. employs a qualified energy assessor to produce all EPC’s it is instructed on.

Click here for more information relating to EPC’s

Tax on residential lettings

Leicester Lettings Co. is not a tax advisor therefore we recommend that landlords seek independent advice on this issue, however the following may be useful as a guide.

Letting residential investment property is treated as running a business - even if you only let out one property. And if you llet out more than one property in the UK, they will all be treated as a single business.

Whether you let one or several properties, you are taxed on the overall 'net profit'. You work this out by:

Adding together all your rental income
Adding together all your allowable expenses
Taking the allowable expenses away from the income

Working out your net profit like this means that you can offset a loss from one property against the profit from others. Your net profit counts as part of your overall taxable income.