Letting Your Property

Welcome to the world of residential letting. We hope that the following information will be helpful and informative and give you the confidence to leave your property in the capable hands of Browns Property Services.

We pride ourselves on providing a personal yet professional service, which we believe is second to none whilst always remembering that the property is still your home.

Established since 1987 we have grown to become one of the largest independent letting agents in North Surrey. We hope you find the following information useful but should you need any further information please do not hesitate to contact our office.

THE LAW
The relationship between Landlords and Tenants is covered by the Housing Act 1988, which became effective on the 15th January 1989. We provide either an Assured Short hold/ Tenancy or Company Let.

LANDLORD & TENANT ACT 1987
Regardless of the type of agreement it is imperative that a notice under Section 48 of the Landlord and Tenant Act 1987 is served upon the tenant at the commencement of the tenancy. This written notice advises a tenant of an address (which must be within England & Wales) at which all notices may be served upon the Landlord.

FURNITURE & FURNISHINGS (FIRE) (SAFETY) (AMENDMENT) REGULATIONS 1993
On the 1st March 1993 the Furniture and Furnishings (Fire & Safety Amendment) to furnished lettings was introduced. The regulations require the upholstered furniture supplied in a furnished let must meet all the fire resistance requirements of the regulations.

Whilst the regulations are fairly complex they essentially make it an offence to "supply" in the course of business (which includes the business of furnished accommodation by an agent), any furniture that has not passed specific tests. Basically, the regulations require that upholstered furniture, headboards, mattresses, bed bases and soft furnishings included in a furnished letting must have passed a match resistant test. And the combination of the cover fabric and filling must have passed a cigarette resistance test.

There are some exclusions. Furniture manufactured before 1st January 1950 has been determined not to have been made with defective materials and is, therefore, exempt. Antique and Period furniture will, therefore, be excluded from the regulations.

However, since 1990 all upholstered furniture sold in retail outlets has had to comply with the regulations and in order to show compliance, such upholstered furniture carries a permanent label stating the tests to which the materials have been subjected. This label, will therefore, be of great assistance to a letting agent in determining what furniture is acceptable in order to not commit an offence.

INCOME TAX
From 6th April 1996 letting agents or tenants, where there is no letting agent, of a non-residential landlord must:-
-deduct tax from the Landlord UK rental income and pay the tax to the Inland Revenue

They must do this before each quarter that is for each three month period ending on the 30th June, 30th September, 31st December and 31st March.

Letting Agents and Tenants do not have to deduct tax from the rental income of a non residential landlord if the Inland Revenue have told them in writing that the landlord is approved to receive the rental income with no tax deducted.

Non-resident Landlords can off set the tax deducted from their UK rental income against their own tax bill when they complete their UK Tax Return. They can also claim repayment of any excess tax deducted from their UK rental income.

Non-resident Landlords can apply to in Inland Revenue's Financial Intermediaries and Claims Office (FICO) for approval to receive their rental income with no tax deducted.

We strongly advise landlords to seek independent advice from their accountant or Tax Adviser as to their individual position in regards to income tax.

RENT
Rent received from the tenant will normally be paid to the Landlord or his representative with seven days of receipt. This allows time for the tenant's cheque to clear.

INSURANCE
Browns Property Services are happy to organise contents and buildings insurance to competitive rates. All interested insurance parties should be informed of the Landlord's plans and adequate cover taken out. Most companies have special terms for the property to be let of left unattended. We need to know any special provisions required by the insurance companies and details of all policies in force (buildings and contents) as this may be relevant to the type of tenant who can take up the property.

MORTGAGE
Under most mortgage agreements there is a clause restricting the letting of property without the prior consent of the mortgagee. This permission is usually granted without a problem where the Landlord is using a professional Managing Agent and an approved form of Tenancy Agreement. The lending source may wish to impose conditions on the letting and it is therefore in the Landlords interest to make all conditions imposed known to you and make certain that you can ensure compliance. It is possible that the lender may impose an administration fee. If the property is leasehold then consent must be sought of the superior landlord. Your solicitor may be able to advise.

COUNCIL TAX
When a property is let the tenant is liable to pay for the Council Tax. However, between lettings the liability is the Landlord's and is calculated on a daily basis at a reduced rate. Should the property be unfurnished there is no liability to the Landlord for the first six months the property is vacant and the Landlord will need to apply for exemption directly from their Borough Council.

UTILITIES
Browns Property Services are unable to transfer utilities and we ask that you as the Landlord give meter reading to the individual utility companies. Tenants are advised not to change the supplier to the property and this is stated in the Tenancy Agreement.

GAS SAFETY CHECKS
Regulation 35 came into force on the 31st October 1994 and relates to all gas appliances, fittings, pipe work and installations whether served by mains gas, propane or calor gas.

It is now our duty to make Landlord's aware of their responsibilities under the above regulations in order to reduce the risk of death or serious injury to the Tenants. In cases where we are instructed as Managing Agents we also have direct responsibilities under the above regulations.

1. To ensure that annual safety checks are made on all gas appliances in the property.

2. To ensure that any work carried out on gas appliances is carried out by a Corgi registered contractor.

3. To maintain records of the inspections and work that is carried out.

4. To allow the Tenant to have details of the inspections/servicing history of a property that they are renting.

FURNISHINGS
It is our experience that the best equipped and decorated houses result in the most conscientious and considerate behaviour by Tenants.

CENTRAL HEATING
Preferable to have a service contract with a recommended heating company (we have good relationships with various contractors).

GARDEN
Lawnmower, garden tools and clothes line. Tools should be provided if the tenant is responsible for the upkeep of the garden.

KEYS
A set of keys should be made available to all persons who sign the Tenancy Agreement. One set available to Browns Property Services, if we are managing your property for you.

All items should be in good order, clean and of reasonable quality.

CLEANING
It is important that properties are left in a very clean state by the Landlord to set the standard for the Tenant and to avoid any dispute at the end of the Tenancy. If necessary we will arrange house cleaning between tenancies and before the owners return.

MAIL
We advise Landlord to arrange for a re-direction of their mail through the Post Office.

REPAIRS
Consideration needs to be given to the on-going maintenance and repairs that may be undertaken during the let. It is vital that all guarantees and repair contracts are in existence prior to the let commencing, the existence of such greatly reduces the overheads during the term. We would advise landlords not to leave in the property any valuable ornaments, or expensive and difficult to replace items of furniture.

INVENTORY CHARGES
On the properties that we manage, we insist that we prepare our own inventory and carry out the check-in and check-outs. This service is charged in addition to the management fee in accordance with the size of the property and the number of check-outs undertaken on any inventory.

Inventories are essential as they are used to assess dilapidations at the end of the tenancy.
Prices available on application

We offer Landlords three types of services:

FEES STRUCTURE
A fee of £65.00 plus VAT for the preparation of this agreement is payable by you upon the execution of the Agreement. A fee of £15 plus VAT will be charged for the stamping of the Agreement by the Inland Revenue Stamp Duty which is required by Law.

A) LETTING ONLY SERVICE Pay our fee of 10% plus VAT of the total Rent payable for the duration of the Tenancy which fee you agree we may deduct from Rent received by us. Any remaining fees payable to ourselves will be deducted from the second months Rent.

B) RENTAL COLLECTION SERVICE Pay our fee of 10% plus VAT of the total Rent payable for the duration of the Tenancy which fee you agree we may deduct from Rent received by us. Any remaining fees payable to ourselves will be deducted from the second months Rent. A fee of 2.5% of the monthly rent will be collected on a monthly basis and will be known as our Rental Collection Fee.

C) MANAGEMENT SERVICE Pay our fee of 10% plus VAT of the total Rent payable for the duration of the Tenancy which fee you agree we may deduct from Rent received by us. Any remaining fees payable to ourselves will be deducted from the second months Rent.
A fee of 5% of the monthly rent will be collected on a monthly basis and will be known as our Management Fee.

If you would like any information please contact your local office.