Frequently asked Questions by Applicants and Tenants
Q. Why do I have to pay for a reference charge?
A. We have to obtain financial and other references to satisfy our clients that you are a suitable tenant. We use a company called MARAS, which charge us a fee, we pass this on to applicants when they apply for a property. As the application is for a particular property, we only use the information for the one application. Therefore, if you failed to obtain the tenancy for this property and wish in future to apply for another one with us, we must ask for fresh references. This is because, the data held on record may change after we have made the original reference application and therefore may not give an up to date information which we are obliged to collect. Unless we have the witten permission from a landlord to accept information already held.
Q. Can this reference be used by anyone else?
A. No. Due to Data Protection we can only use the information received by our office, the landlord can also have sight of such information to determine if you will be accepted . We cannot pass the information on to a defferent agent.
Q. How long do I have to stay in the property?
A. The tenancy will normally be for a fixed term of 6 months, thereafter and by agreement month to month or renewed on a fixed term. You will be bound by the agreement for the rent for the full fixed term of the tenancy.
Q. What is my position if I have to vacate the property before the fixed term has ended due to being relocated with work etc?
A. As with the above question you are bound by the tenancy for the full term. However, if the property is going to be re-let, then we can remarket the property and find new tenants. You will be responsible for reasonable advertising costs and charges. Once referenced and the tenancy signed, the liability will cease from the date of the new tenancy commencement date. However, if the landlord does not intent to re-let the property, he/she may still hold you to the remaining contractual rent. Always speak to us before deciding to vacate.
Q. Why do I have to pay a deposit or bond when I sign the agreement?
A. The Deposit or Bond is held against any unfair wear and tear during the tenancy period. When you vacate, we will check the property for unfair wear and tear and agree an amount for compensating the landlord. IF you disagree with the decision, you can refer the matter to The Dispute Service or TDS, which runs the Tenancy Deposit Scheme who will arbitrate is such circumstances. However, they will not deal with willful damage or arrears of rent. As from June 2007 all landlords and letting agents will be required to be part of a scheme approved by the government. If not they will not be able to hold your deposit/bond, and may face penalties.
Q. If I am sharing a property with someone, how does this affect me?
A. When you take on a joint tenant with another person or persons, you are taking what is called a Joint and Several Tenancy. Each tenant should be aware that he/she has "joint" and Several" liability to the landlord for the whole rent. This means for example, that if one joint tenant leaves the property before the end of the tenancy without the landlord's agreement, the remaining joint tenant(s) will be responsible for paying the full rent. Similarly if a single tenant is in breach of the conditions of the tenancy, the joint tenants will also be in breach of the conditions, such as any damage or individual rent arrears. This in turn could affect the return of your proportion of the deposit/bond held. Therefore, you must trust your fellow tenant(s) when signing such a tenancy.
Q. Who is responsible for repairs?
A. The Landlord is responsible for the repair of the structure of the property including the repair to gutters, drains. But the Landlord is not responsible for actions of a tenant not behaving in a "tenant-like" manner. That is, willful damage, neglect, cleaning, or obstructing drains/pipes etc. by allowing foreign material to be flushed down sanitary ware. This would be the responsibility of the Tenant to pay for the repair or cleansing. If the property is furnished, the Landlord is obligated to repair or replace any faulty item of furniture. However, if it is through misuse, the landlord can claim compensation for the repair or replacement. If the property is unfurnished, and you plumb, say, a washing machine in. You will be liable for any damage if incorrectly installed - flood etc. Therefore always check connections from time to time and turn off taps and stop cocks if away for lengthy periods especially in winter.
Q. What about my pet?
A. Many landlords do not wish animals in properties that could damage a property such as a cat scratching paintwork or a dog chewing doors or furniture. A barking dog is a noise hazard and could jeopardize your tenancy Therefore, you must ask the landlord or agent about the pet policy for a particular property BEFORE having a pet. It would be unfair not to accept a bowl of goldfish or a hamster in a proper cage for instance. Cats and dogs are also susceptible to parasites, such as fleas, and therefore can cause further problems for future tenants.
Q. What happens with utilities such as electric and gas?
A. When you move into a property, you should immediately read all meters, gas, electric and (if applicable) water. It will be your responsibility to inform the utility companies of the readings on entry and final reading on your vacation. Due to restrictions by the utility companies it has become increasingly difficult for the agent to oversee such transfers and therefore it is very important that you take readings.
Q. When I need to vacate, what action do I need to take?
A. Firstly, you should contact the Landlord or the Agent and ask them for their vacation policy. It should take the form that you will need to give at least one clear month's notice from the rental due date. If you pay the rent on the 10th of the month, then you will need to give notice by 10th of a given month. If you don't, you may be responsible for a further month's rent. - So it is important that you follow the policy to avoid problems. All rent needs to be paid to the end of the tenancy, you cannot use the deposit as the last month's rent. At least a week before your vacation, you should contact the Landlord or Agent to arrange for the final inspection to be made. Once this has been done and you have vacated, the keys returned to the landlord or Agent, agreement will be made of unfair wear and tear (if any) and the return of the bond will follow.
Frequently asked Questions by Landlords
Q. How much rent can I obtain for my property
A. Before we can give you a guide price we need to collate information surrounding the letting - The location. Is the property to be let furnished or unfurnished? The condition and size of the property all play a part in the rental appraisal. Type of tenant sort can also affect the value.
Q. If I rent my property furnished, what do I need to provide to class it as furnished?
A. A furnished property should have all the comforts of a home, sleeping arrangements, dining arrangements and relaxation arrangements. The finer points, such as televisions, HiFi equipment can be added, but you will be required to repair them if they break down. Most tenants renting furnished accommodation have limited items to bring to the property and therefore are more likely to be overseas nationals or executives traveling through work commitments. All soft furnishings must meet the Fire Furnishings Safety Regulations 1994. The furniture should be modern, clean and free from damage or excessive wear. Kitchen equipment should be clean and safe to use. Be careful when choosing flooring in apartments or flats, as there could be restrictions on the installation of laminate flooring due sound transfer. Carpets need to be in good condition and any worn or old carpets should be replaced.
Q. What about letting unfurnished? I have heard that you cannot get a tenant out if you let unfurnished is this true?
A. NO. Letting an unfurnished property does not affect your legal right for possession of the property when required. Again as with furnished accommodation you are attracting different type of tenants, these can include, singles, couples or families. Some may be living on their own for the first time, some may be separated or have sold a property and have not found a new one. If you are to let the property unfurnished, the minimum requirements would be carpets and curtains. If the kitchen is fitted then the built-in appliances and "white" goods" can remain. The rent will reflect the standard of the accommodation and therefore a landlord should set high standards to obtain a good return.
Q. A friend of mine lets her property to four different people, is there any problem with this?
A. Yes. Landlords should be aware that letting property in England and Wales to three or more persons who are unrelated persons forming two or more households could give rise to the property being described as a House in Multiple Occupation or HMO. There has been much recently in the press regarding such a property. The criteria for each classification of HMO are complex. The main area of concern for your friend letting this type of property is that there are health and safety issues that need to be addressed, such as means of escape in case of fire. The installations of mains smoke and heat detectors, although this is not a complete list. In larger properties containing 5 or more persons and on three storeys, the local authority will require you to license the property as an HMO. Failure to do so may result in prosecution and a fine not exceeding £20,000. They may register you as an unfit landlord and therefore you will not be able to rent out similar properties in future.
Q. What if I want to increase the rent?
A. There are strict rules on how and when you can increase the rent. If the tenancy is for a fixed term, you cannot increase the rent until after this term has ended unless there are rent increasing powers within the tenancy which must be inline with the Unfair Terms in Consumer Contracts Regulations 1999. Once the fixed term has ended you may increase the rent on giving notice to the tenant under Section 13(2) of the Housing Act 1988. The tenant has one month to challenge the rent increase, either by agreeing with you (the landlord) on a variation of the increase, accepting the increase as is or by referring it to the Property Tribunal to assess the proposed increase. Once you have increased the rent, you can only increase the rent again once a clear 12 months period has elapsed. If the rent is paid weekly this may mean 53 weeks in some cases.
Q. I need to do some repair on the house and I need access, can I use my key and just get on with the jobs?
A. Unfortunately no. You must make an arrangement with the tenant for access. You must give at least 24 hours notice to the tenant of the intention to obtain access for repairs. If it is not convenient for the tenant to give you access, then you will have to come to some other arrangement. You cannot use force or pressurize the tenant at any time. If you still cannot obtain access, you will need to go through a County Court to legally enforce your right as a landlord.
Q. I am renting my own home out through an agent while I am working abroad for 4 years does this change anything?
A. When you rent property it is classed as unearned income and therefore you will be liable for tax at 22% (or as otherwise directed by the Inland Revenue) of the NET RENT. As you will be residing overseas for more than 90 consecutive days in a year, you need to apply to the Inland Revenue for an approval number for the agent not to withhold any tax element of the rent. If you do not have an approval number then the agent must deduct the tax after taking into consideration any allowances before paying you the balance. Without an approval number the agent collects the tax element and passes to the Inland Revenue on a quarterly basis. This must be properly accounted. At the end of the financial year a report is given to you on the amount of tax deducted and remitted to the Inland Revenue. Under the Taxes Management Act 1970 and the Finance Act 1995 the agent is duty bound to pass all information held regarding rental income (whether you are residing in the UK or not) to the Inland Revenue.
Q. Do I need any permission to let
A. Yes, depending on the type of property you are letting out. If it has a mortgage, you will need to mortgage lender's approval. You need to inform your insurance company as they may require special clauses in a tenancy for security or tenant's effects. If you do not inform these, you may find that if you have to claim against an insurance policy, they may not pay out. If you have a leasehold property you will require permission from the freeholder or head leasee again they may have specific clauses to insert in the tenancy, such as noise, rubbish, drying clothes on balconies etc..