FREQUENTLY ASKED QUESTIONS

KEEP IT CLEAN A clean and tidy property will not only be easier to rent, it will also mean that a fair rent is justified. Think about whether you would want to live there or not. TO FURNISH OR NOT TO FURNISH? Property can be let either completely unfurnished, part furnished or fully furnished. This will be reflected in the rent asked for the property. Decide whether to furnish the property or not and to what level. Remember to allow for reasonable wear and tear on any property that you provide. No matter what level you decide on, carpets and curtains (of a decent standard) must be provided. DO I NEED TO TELL ANYONE THAT I AM LETTING THE PROPERTY? You must inform and have consent from your mortgage lender and freeholder (if you are a leaseholder or a management company). Keep any written consents safe along with any other documents regarding the property. WHAT ABOUT INSURANCE? You will need to make sure that you have third party insurance and that you are covered for public liability and against defective premises risks. You will also need to make sure that the building itself is insured and that any furnishings or contents provided by you are covered. You may also like to consider special insurance for landlords which gives cover for legal costs if you have any disputes with your tenant. WHO PAYS THE COUNCIL TAX? When the property is let (for a period longer than 6 months), the tenants pay the council tax direct to the local authority (as long as there is a clause to that effect in the tenancy agreement). If the property is not occupied, the landlord is accountable for the council tax on that property. It is in the best interest of the landlord/agent to let the council know when there is a change of occupancy as the landlord will continue to be held responsible by the council until they are informed of the change in occupancy status of the property. MAINTENANCE BILLS As the landlord, you will usually be responsible for maintaining the property. It is also normal for the landlord to pay the ground rent and any service charge on the property. DO I HAVE TO PAY TAX ON RENTAL INCOME? The short answer is yes. How much will vary on whether you are classed as a UK resident or not. The taxable amount is calculated after a series of deductions. The Inland Revenue publish a series of leaflets which will give you more information about this (leaflets ir150 and ir87). You can find these on the www.inlandrevenue.gov.uk or contact the Inland Revenue direct for more details. NB There are specific rules for non-UK based landlords. These are governed by FICO (Financial Intermediaries and Claims Office telephone 0151 472 6208 INVENTORY As a landlord, you should ensure that an up to date and suitably detailed inventory/schedule of condition for the property and its contents is provided to the tenants at the commencement of each tenancy. Without a good inventory/schedule of condition, it is difficult to assess and justify any deductions for damage from the tenant's deposit at the end of the tenancy. When changing tenants, you must provide a new inventory for each set of tenants. You should also ensure that all tenants are made aware of their responsibilities towards the property. INFORMATION FOR TENANTS Leaving a folder of information about the property, its fixtures and fittings and other information such as emergency telephone numbers may help you avoid tenants having to contact you at awkward times with questions about the property. You may wish to include: • photocopies of any manuals/instructions for appliances • location of fuse boxes/meters/stopcock • information about the heating system/boiler • numbers in case of emergency (plumber, handyman, electrician etc.) SAFETY MATTERS All gas appliances, flues, vents etc (as mentioned in (H) on the front page of this guide) must be inspected at least annually by a CORGI engineer and the appropriate Certification provided to the tenants. We would also recommend that each year a service is carried out on all gas equipment. The consequences of not ensuring safe gas and electrical appliances are fitted in the property are serious.