The Assured Way to Let Your Property - A Guide to Residential Lettings and Property Management for Landlords.
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lettings & property management The Assured Way to Let Your Property A Guide to Residential Lettings and Property Management for Landlords. www.pattinson.co.uk
CONTENTS
Pattinson Rentals The Legal Position and
The Assured Way To Let Management of the
Your Property Property during the
Tenancy
Lettings and Property •• Protecting The Landlord’s Interests
Management Services •• Non-payment of Rent
•• Protecting the Property
•• Tenancy Only Service •• Repairs & Maintenance
•• Full Management Service •• Damage
•• Rent Guarantee Scheme •• Inventory and Schedule of Condition Report
•• Tenancy Agreement Renewals
Presenting Your Property
to the Rental Market New Legislation and the
•• Rental Valuation and Assessment
Private Rented Sector
•• Decoration •• Housing Act 2004
•• Furnished or Unfurnished? •• Tenancy Deposit Protection Scheme
•• Presentation Tips •• Energy Performance Certificate (EPC)
•• Fire and Safety Regulations
Letting Property:
Finding a Tenant The Tax Position
•• Tenant Referencing •• Income Tax
•• Choosing the Right Tenant •• Non-Resident Landlords
•• Tenancy Commencement: Landlord’s Check List •• Taxation Tips
•• Consent
•• Insurance
•• Mail
Contract Documentation
•• Accountant Available on Request
•• Terms of the Tenancy Agreement
•• References
•• Legal Agreements
•• Inventory and Schedule of Condition Report
•• Furnishings Regulations
•• Gas Safety
•• Tenancy Deposit Protection Scheme
•• Energy Performance Certificates
•• Houses in Multiple Occupation (Mandatory
Licensing)
•• General Maintenance
•• Property File
•• Keys
•• Monies
•• Electrical Check
•• Cleaning
•• Garden DISCLAIMER
•• Smoke Alarms This brochure is produced by Keith Pattinson Ltd, and
while the particulars are believed to be correct and are
•• LPG Gas Bottles and Oil Tanks given in good faith, they are not warranted and any
•• Utilities and Council Tax interested parties may satisfy themselves by inspection,
•• Telephone taking alternative professional advice or otherwise, as to
•• Glass the correctness of the information therein. This brochure
does not constitute an offer or contract or part thereof.
•• Chimneys
PATTINSON RENTALS Lettings and Property
THE ASSURED WAY TO Management Services
LET YOUR PROPERTY Tenancy Only Service
Pattinson Rentals is the specialist division of Keith Pattinson Ltd (HOUSING BENEFIT CLAIMANTS CONSIDERED, IF AGREED BY LANDLORD)
dedicated to the letting and management of residential properties
throughout the North East. This service is tailored to those landlords who prefer to manage
the property themselves, dealing with issues such as repairs, rent
Our headquarters based in Newcastle are managed by staff trained collection etc., but want the services of a professional tenant sourcing
to the highest standards who offer a wealth of experience in all and referencing agent.
aspects of the complex modern residential lettings market.
1. Advice on appropriate legal procedures.
Over the last 25 years we have established ourselves as the North 2. Advice on Health and Safety Legislation.
East’s leading residential lettings agent, and developed an enviable 3. Internet and Branch Advertising.
reputation for providing the highest quality of services to our 4. Tailored selection and comprehensive referencing of tenants.
landlords combining tradition and an eye for the contemporary and 5. Accompanied viewings.
future in this complex and changing market. 6. Preparation and Execution of Tenancy Agreements and
appropriate Housing Act Notice.
We offer a comprehensive range of services suited to the varying 7. Collection of ‘Initial Monies’ (i.e. First month’s rent and Tenant’s
needs of landlords whether ‘Buy to Let’ or first time investors, Damage Deposit), and ensure clearance before handing over
corporate landlords or private individuals wishing to rent their keys.
homes. Each of our clients can benefit from the wealth of 8. Arrange Standing Order Payment Mandates.
experience and expertise within Pattinson Rentals.
Where landlords are considering approving occupancy by Housing
The services we provide are based on expert knowledge and Benefit claimants we strongly advise they discuss this matter with
experience of the rentals market, and a commitment to delivering a ourselves beforehand. Notwithstanding our services for Housing
high standard of service to all our present and future clients. Please Benefit occupants may only be engaged strictly on the basis of a
read this information file carefully. It outlines how we can best serve ‘Tenant Find Only’ arrangement as detailed above.
your interests by letting your property correctly and profitably, and
help to safeguard one of your most important assets. Accordingly,
we strongly recommend landlords should not take risks with letting Full Management Service
arrangements without first seeking our professional advice on all (NO HOUSING BENEFIT CLAIMANTS)
aspects of this complex market. This service provides the ideal solution to landlords who don’t want
the difficulties of finding a tenant, getting involved in managing, repairs
Should you require any additional information, or have any and maintenance, or collecting rent.
questions in relation to letting or property management please
do not hesitate to contact any of our 30 branches, or Pattinson INCLUSIVE OF 1 - 8 IN THE ‘TENANCY ONLY’
Rentals directly. www.pattinson.co.uk LIST, PLUS:
All Pattinson Rentals’ properties are automatically loaded onto 9. Drafting Full Inventory and Schedule of Condition Report.
our ‘live’ website which is constantly updated and attracts over 10. Transferring Utilities and Council Tax Accounts (In).
120,000 page views everyday. This ensures that you have the 11. Structured computer controls (Rent, Tenancy Renewals, Gas Safety
maximum marketing exposure for your property worldwide 24/7! Certificates, etc.)
12. Payment of Stamp Duty.
REGION-WIDE BRANCH NETWORK 13. Checking Tenants In on request.
14. Monitoring of Rent Payments.
A North East wide network of 30 branches ensures that all 15. Serve Repossession Notices per Housing Act.
Pattinson Rentals properties are available to let any time, any place, 16. Draft and serve any legal Notices To Remedy (as appropriate).
anywhere. 17. Regular Property Visit Reports.
18. Monthly Payments and Statements of Account.
19. Fielding Tenant Complaints.
20. Checking Tenants Out.
21. Re-check Inventory and Conditions to determine ‘Damage
Deposit’ retention or refund as appropriate.
22. Transfer utilities and Council Tax-Accounts (out).
23. Review Rent Charge.
24.
25.
Remarketing the Property.
General Administration.
Decoration
26. Arranging minor repairs and/or quotes. The standard of the interior decoration will greatly affect the rent
27. Checking workmanship and charges. achievable in the market. The higher the standard of the decor, soft
28. Discharging contractors’ invoices relating to minor repairs from furnishings and furniture (if applicable) the more attractive the property
monies retained from will be to the market, and the higher the achievable rental income is
29. landlord’s rental income (See: disclaimer). likely to be. The décor should reflect the target tenant you want and
30. Optional Rent Guarantee Scheme (See Other Services). not your own personal taste.
Disclaimer
All disputes regarding payment of contractor’s invoices for repair works instructed Furnished Or Unfurnished?
on behalf of the landlords contracted under our Full Management Service are
deemed to be between the landlord and contractor. Keith Pattinson Ltd. does not A landlord has the same legal protection and obligations whether the
assure liability in such and all instances. Please note that Keith Pattinson Ltd. do
property is furnished or unfurnished. Furniture, fabrics and upholstery
not retain management responsibility for rental properties during periods when the
property is unoccupied/between tenancies. must comply with fire regulations. (see: Fire and Safety Regulations)
The rental market is evenly split between demand for furnished and
unfurnished accommodation. If furnished however, the better the
Rent Guarantee Scheme standard of the furnishings the greater the likelihood of achieving the
maximum rent desired.
One of the primary concerns of the landlord is that the tenant will
default on their rental payment obligations. Should you choose our Unfurnished Property:
Full Management Service then we offer an optional ‘Low Cost’ rent This is an empty property that includes carpets and white goods
guarantee scheme at 3% of the monthly rent plus VAT per calendar (fridge/freezer, washing machine etc.).
month which will limit your loss, and ensure against non-payment of
rent, subject to conditions. Further details are avialable on request.
Furnished Property:
NOTE: In accordance with the requirements of the Money Laundering This is a property ready for immediate occupation, including furniture,
Regulations 2007 clients will be required to provide 2 forms of identification in white goods, kitchen crockery, cooking utensils and cutlery. Linen and
the form of a Passport or New-Style Driving Licence and a Utility Bill/Council Tax towels are not normally included even in a fully furnished property
Demand in their name and the address of the property to be let. In addition, it and we strongly advise removing all televisions, video/DVD, Hi-Fi
should be noted that Keith Pattinson Ltd will conduct a Land Registry check to equipment, personal effects and ornaments etc.
confirm ownership of the property.
Presentation Tips
PRESENTING YOUR •• Neutral decor (whites, creams etc.) gives an impression of space
PROPERTY TO THE RENTAL and a cleaner, fresher air.
•• Painted surfaces are easier to maintain than wallpaper.
MARKET •• Good quality, hard wearing carpets and soft furnishings
particularly in unfurnished property where they are more visible.
•• Well-equipped kitchens, including ideally a large fridge-freezer,
Rental Valuation and Assessment washing machine and/or washer/drier and a microwave.
•• Bathrooms should have quality fittings and be well lit.
Numerous factors are taken into consideration when advising •• Ample storage space e.g. wardrobes.
landlords on how to proceed with letting their property. For example, •• Remove all unnecessary ‘clutter’ e.g. ornaments, photographs,
factors including location, condition, size and standard of the fixtures, items of sentimental value etc.
fittings and contents together with the current state of the rental •• Gardens should be neat and tidy. Safe tools must be provided.
market must be considered. •• Professional cleaning is recommended.
•• Make the exterior of the property as attractive as possible e.g.
On request an experienced Pattinson Rentals Valuer will conduct paintwork etc.
a ‘Free, No Obligation’ detailed assessment and inspection of the •• Prepare a ‘Tenants Pack’ including useful information on how
property during which time many relevant issues will be discussed with to use the central heating system, or any electrical equipment
you relating to the letting of your property. This allows you to discuss included as part of the tenancy, for example.
any issues of concern and ask any questions you might have.
Fire and Safety Regulations Equipment (Safety) Regulations 1994)
•• All socket outlets which may be used for equipment outdoors
(e.g. a lawnmower) should be protected by a Residual Current
FURNITURE AND FURNISHINGS (FIRE Device (RCD)
SAFETY) REGULATIONS 1989/1993 •• Retain copies of any certificates of electrical works carried out
The landlord and managing agent are jointly responsible for ensuring
that all soft furnishings comply with the above regulations. If any SMOKE DETECTORS ACT 1991
property is found not to comply the landlord could face imprisonment The law requires any new building built after June 1992 to have
and/or fines of up to £5,000. mains operated smoke detectors installed on each floor. Whilst older
properties are exempt from the legislation we strongly recommend
GAS SAFETY (INSTALLATION AND USE) that smoke detectors are installed on each floor of the property.
REGULATIONS 1998 Remove any toxic and/or highly flammable substances e.g. tins of
The landlord and managing agent are jointly responsible for ensuring paint etc.
that all gas flues, fittings and appliances comply with the above MANAGEMENT OF HOUSES IN MULTIPLE
legislation and that annual inspections are carried out by a CORGI OCCUPATION (ENGLAND) REGULATIONS 2006
registered gas engineer who must provide written proof of safety by The above regulations place a responsibility on the person managing
issuing a landlord certificate (CP12), and the aforementioned are the property to ensure a list of things are done. In particular, the
serviced on an annual basis. This must be in place before and during regulations place a duty on the ‘manager’ of the property to have
any tenancy, and the managing agent must be provided with a copy an electrical mains installation check carried out every 5 years if the
of the certificate. Whilst not a legal requirement in most residential property is let to 3 or more people forming 2 or more households.
rental property we would strongly advise that consideration is given to
installing Carbon Monoxide Detectors. WATER INDUSTRY ACT 1999
Landlords should be aware that where the water bill is the
THE ELECTRICAL EQUIPMENT (SAFETY) responsibility of the tenant, that tenant has a statutory right to have a
REGULATIONS 1994 water meter installed which, when fitted, is irrevocably supplied with
These regulations apply to all electrical equipment between 50 and metered water. If rent includes water services this right does not exist
1,000 volts a/c and require that apparatus must be safe and not in law.
cause danger.
THE PLUGS & SOCKETS (SAFETY) FINDING A TENANT
REGULATIONS 1994 (CONSUMER As the region’s premier lettings and managing agent we will
PROTECTION ACT 1987) endeavour to find you a quality tenant with the right credentials suited
Any plug, socket or adapter supplied which is intended for domestic to your property. We will market your property through our extensive
use, must comply with the appropriate current regulations. network of 30 region-wide branches, and our effective website. Our
aim is to find you the right tenant, with suitable references, at the right
BUILDING REGULATIONS - PART “P” rent as quickly as possible, and a guarantor if required.
ELECTRICAL SAFETY IN DWELLINGS
The Landlord and Tenant Act 1985 puts the onus on landlords to
ensure the electrical installation in their property is safe when the Tenant Referencing
tenancy begins, and that it is maintained in a safe condition throughout As your appointed agent, Pattinson Rentals will take the following
that tenancy. From 1st January 2005, all domestic electric installation references, on every individual tenant who is to be named on the
work (particularly in kitchens and bathrooms) must be carried out by a tenancy agreement. In normal circumstances, this will mean everyone
Government “Approved” contractor. In addition, electrical con- tractors over 18 who will reside in the property, and a guarantor if required.
will have to verify the work complies with British Standard Safety •• Proof of Income: The last 6 months pay-slips/bank statements or
Requirements (BS7671). Failure to comply with these regulations is an employer’s reference.
a criminal offence and could result in fines of up to £5,000 and/or •• Proof of Residency: 2 utility bills dated within the last 28 days
imprisonment. stating full name and address. If living with parents applicants
must provide bank statements, driving licence or mobile phone
SUMMARY OF LANDLORD RESPONSIBILITIES bills.
•• Only use “Competent Approved” contractors •• Previous Landlord’s Reference/Character Reference: if applicant
•• Ensure that cracked/damaged sockets or plugs and frayed wiring has been in rented accommodation over the last 18 months
is made good (Plugs and Sockets (Safety) Regulations 1994 a previous landlords reference is required, if not a character
(Consumer Protection Act 1987). reference is required.
•• Ensure all appliances are safe to use prior to any let i.e. cooker/ •• Completed Application Form
kettle/toaster etc. Property should be inspected and tested •• Photographic Identification: e.g. driving licence, passport
at least every 10 years by a ‘Competent Person’ (Electrical •• Proof of Signature: e.g. driving licence, debit/credit card
The applicant is required to earn 30 times the rent per year, if not a items of sentimental value and unnecessary clutter (ornaments etc.). In
guarantor is required. To further strengthen the landlord’s position, addition, we recommend that you do not leave
we may also require a guarantor to bolster their ability to meet their ‘locked rooms’ at the property as this may deter applicants, and
commitments to you. In such circumstances we will reference check may have ‘Health and Safety’ and insurance implications for you as
the potential Guarantor as follows: Landlord.
A guarantor needs to: Mail
Arrange for the redirection of your mail.
•• be a UK resident
•• be a home owner
•• earn 30 times the rent per year Accountant
•• provide proof of income (as above) Employ a tax consultant or accountant if necessary. Pattinson Rentals
•• provide proof of residency (as above) will advise you of the necessary procedure to follow if you are ‘Non-
•• proof of signature (as above) Resident’ in the UK.
•• photographic identification (as above)
Alternatively when certain or all of the important references are Terms Of The Tenancy Agreement
unavailable, advanced payment of rent may be requested. If you are Pattinson Rentals will work on these with you as negotiated between
letting to a company, references will be requested from an accountant, landlord and tenant.
bank or a trade referee can be substituted.
References
This vital process is carried out objectively and thoroughly by our Always take up references. We will confirm that you are happy with the
experienced in-house referencing team, and incorporates the use of a type of references being applied for.
recognised national Credit Referencing Company.
Choosing The Right Tenant Legal Agreements
Whilst getting the most rental Income achievable is important. It Is Pattinson Rentals will prepare the tenancy agreement and any legal
equally Important to choose the ‘right tenant’ for your property. This notices on your behalf.
will reduce the level of involvement needed in the management of the
property and expenditure on repairs and maintenance. As the North Inventory and Schedule of
East’s leading residential lettings agent with an enviable reputation for
the excellence of our services to landlords we aim to secure you the
Condition Report
Arrange an Inventory and Schedule of Condition report of the property
right tenant at the right rent in the shortest possible time! before the tenancy commences. This will help assess any damage
or loss at the end of the tenancy. If you select our Full Management
Tenancy Commencement - Service Pattinson Rentals will arrange these for you.
Landlords Check List
Having selected the ‘right tenant’ for you Pattinson Rentals will ensure Furnishing Regulations
that the move in is as smooth as possible. Whilst seeking to protect Ensure all soft furnishings meet the latest statutory regulations.
your, our client’s, interests, we will seek to build a sound, working
relationship with you and your tenant alike; a vital and important
element throughout the term of the tenancy.
Gas Safety
Ensure all gas pipework and appliances comply with the latest
Gas Safety Regulations and a safety certificate indicating that the
Prior to the commencement of the tenancy there are several important aforementioned have been inspected and serviced by a CORGI
matters to consider. The following list summarises points that may registered gas fitter prior to the tenant taking occupation. A copy of
need to be addressed by you, and Pattinson Rentals, as your agent. the certificate must be made available to the tenant, and Pattinson
Rentals as your agent.
Consent
If your property is mortgaged then you will most certainly need
permission from your mortgagee or head lessor. Some tenants ask for
Tenancy Deposit Protection
written proof that this permission has been granted because without it Scheme
their Tenancy Agreement could be invalid. With effect from 6th April, 2007, ‘The Tenancy Deposit Protection
Scheme’ came into force whereby tenants and landlords unable to
agree settlement of a ‘Bond/Damage Deposit Dispute’ may refer
Insurance the matter to Alternative Dispute Resolution (ADR) which will give
Ensure that your property (buildings) and contents are adequately judgement on receipt of the relevant documentation and the agent/
insured, and that you have advised your insurers of your intention to landlord will be instructed to release the deposit in accordance with
let. You are also responsible for insurance in respect of pUblic liability. the binding decision. Reference to The Scheme must be written into
We would strongly advise that you remove all personal possessions,
the tenancy agreement. To qualify for the Scheme either the landlord the same Energy Performance Certificate but the law states a landlord
or agent must register. The Scheme applies to all Assured Shorthold must show it to any prospective tenant.
Tenancies that began on or after the implementation date, as well as
to all tenancies renewed after that date. The result of an Energy Performance Certificate will be another one
of the factors Tenants will consider when choosing a rental property
Subsequently amended by The Localism Act 2012 since the and so the incentive for energy saving measures to be carried out is
legislation came into force landlords are no longer permitted to hold important.
tenant’s deposits as they did previously. They must either pay the
deposit into a custodial scheme or pay a premium to participate
in an insured deposit scheme themselves or through their letting/ House In Multiple Occupation
management agent. (Mandatory Licensing)
With effect from 6 April, 2006, the definition of a House in Multiple
With effect from 6 April 2012 failure to do so, and to produce proof to Occupation (HMO) as defined by previous Housing Acts changed.
the tenant within 30 days of the Deposit having been taken can have Nationally, mandatory licensing of HMO’s which are 3 or more storeys
serious consequences which could result in the landlord being fined and occupied by 5 or more people came into force on 6th April,
and forced to return the deposit to the tenant. He may also be unable 2006. In addition there are discretionary powers to license HMO’s that
to regain possession of his property by serving a Section 21 Notice or fall outside of this mandatory requirement.
to enforce the terms of the tenancy agreement by making deductions
from the deposit at the end of the tenancy. Licences for HMO’s last for a maximum of 5 years and are non-
transferable. A person controlling an HMO must have a licence for
Should you select our Full Management Service you will enjoy the each property. It is a criminal offence not to have a licence when a
benefits of Pattinson Rentals membership of the ‘The Dispute Service’. licence is required, and punishable by a fine of up to £20,000.
Further information can be obtained from the Government’s website: Note that as Managing Agent we will require a copy of the licence
www.direct.gov.uk/tenancy deposit or the leaflet hot-line: prior to the marketing of the property or confirmation from the local
0845 609 0696 Authority that a licence is not required.
Energy Performance Certificates: With effect from 25 November 2011 an amendment to the Town
Initially introduced on 1 October 2008 any new residential letting
and Country Planning Act created a new planning class for HMOs
requires the landlord to provide an Energy Performance Certificate
that will require landlords to apply for planning permission to change
(EPC), valid for 10 years, to protect prospective tenants.
use to open a new letting property that is altered from a family home
to a shared house for 3-6 tenants who are unrelated, do not form
Amended by The Energy Performance of Buildings (Certificates and
one household and share basic amenities. The main thrust of the
Inspections) (England and Wales) (Amendment) Regulations 2011
requirement relates directly to changes in between C3 (residential use)
(amending regulations) the following requirements were introduced:
and C4 which is an HMO (House in Multiple Occupation occupied
by 3-6 unrelated people sharing amenities such as the kitchen, wc
As from the 6th April 2012 an EPC MUST BE COMMISSIONED
etc)
BEFORE MARKETING for both domestic and non domestic buildings
and the full 1st page has to be displayed.
Two issues are of particular importance for landlords:
•• Estate Agents and Letting Agents must retain evidence that the 1. The upshot of the above change to the law is that all
EPC has been commissioned and have 7 days to display the
properties in the above area to be let to 3 - 6 sharers after
report. This has been reduced from the current 28 day period.
25 November 2011 are required to seek planning consent
in advance of the let, and should be referred to the Local
•• The option to display just the asset rating graph will be removed Authority for advice and assistance, and;
and the full 1st page of the EPC must be displayed with all sales
or rental written particulars
2. The requirements refer specifically to ‘NEW LETS’. If the
landlord can prove that the property has previously been let to
The ‘New Style’ EPC has been changed to ensure increased impact
3 -6 sharers (Proof includes copies of old tenancy agreements
on the measures to improve the energy efficiency of the building.
etc) then planning consent will not be required.
It also includes information on ‘The Green Deal’ and ‘Eco-Funding’
available from Autumn 2012.
The change of use will affect landlords:
Once obtained the certificate will be valid for 10 years but can be
A. Buying a home to let as an HMO;
renewed earlier if the landlord wishes to reflect any improvements
B. A homeowner wishing to let out their residential property as an
made. However there will be no legal requirement for a new EPC to
HMO;
be issued if landlords have upgraded their property in response to
C. And investors who already let a property under a single as-
earlier recommendations.
sured shorthold tenancy agreement who want to convert the
property to a multiple let.
All lettings within the 10 year valid period will be able to make use ofAs with all previous HMO legislation this area is extremely ‘grey’ and
again, as previously, if there is any doubt about the potential let then
LPG Gas Bottles And Oil Tanks
At the start of the tenancy gas bottles and oil tanks should be full.
please contact this office. For further clarification please refer to the
relevant Local authority for advice.
Utilities And Council Tax
As your managing agent we will arrange for the transfer of Utilities
General Maintenance and Council Tax liability into the tenants’ names. You must pay for the
Ensure all electrical wiring, pipework, heating systems and appliances closing accounts in your name. If Pattinson Rentals are instructed on a
are in safe working order. If possible, arrange maintenance contracts. ‘Tenancy Only’ basis, you must arrange the above.
If you select our Full Management Service you will be required to
provide a list of preferred contractors who can be used without
landlords’ consent in times of emergency. Alternatively we will agree Telephone
with you a level of responsibility you wish us to have in arranging There should be a working telephone line to the property.
repairs and replacements.
Glass
Property File Ensure that all glass in doors meets current safety standards.
Compile a file of useful information for the tenant. This should include
information relating to the use of appliances left in the property. and
central heating/hot water. Copies of instruction manuals are particularly Chimneys
useful. If your property has a chimney it should be swept before the
commencement of the tenancy.
Keys
If you choose our Full Management Service, we will require 3 The Legal Position And
Management Of The
complete sets of keys to include window lock, garage and all
associated keys.
Monies
Property During The
As your agent, Pattinson Rentals will ensure that the initial monies Tenancy
including the rent and damage deposit have been ‘cleared’ before
handing over the keys and signing the tenancy agreement. Throughout the letting of your property it is essential that it is well
managed on a regular basis to protect your investment. As such it is
important to:
Electrical Check •• Prepare a full and detailed ‘Inventory and Schedule of Condition’
Where the property is let to 3 or more people forming 2 or more
households, it is now a legal requirement that you arrange for an report.
‘Electrical Mains Inspection’ to be carried out every 5 years. In •• Carry out regular ‘Quarterly Visits’ to the Property.
addition, we would strongly advise that you also arrange an inspection •• Address and rectify problems quickly.
of the appliances in the property and retain a record of this. This is •• Maintain and service appliances regularly in accordance with
referred to as ‘Portable Appliance Testing’. current regulations.
•• Ensure the tenant pays the rent by standing order to avoid late
payment.
Cleaning At Pattinson Rentals, we can best serve your interests by letting your
The interior and exterior of your property should be clean and in property correctly and profitably, and help safeguard one of your most
decorative order. important assets. How?
Garden Protecting The Landlord’s
Ensure that the garden has been tended prior to the tenancy and
provide the necessary safe equipment for the tenant to carry out
Interests Non-Payment Of Rent
‘gardening’ if they are responsible for the outside space as per the Along with anxiety over the maintenance and care of the property and
terms of the tenancy. This will help set the standards you expect to be its contents, the primary concern of the landlord is non-payment of
maintained by your tenant. the rent by the tenant. Despite taking up references and conducting
a thorough ‘credit check’, problems do still arise some of which are
beyond the tenant’s control such as loss of employment. In the event
Smoke Alarms of non-payment of rent, as your Managing Agent, Pattinson Rentals
Ensure that smoke alarms are fitted and are in well-maintained will take swift and effective action to remedy the breach, enforcing the
working order. We would also recommend that you provide Carbon appropriate legislation to gain possession of the property if required.
Monoxide alarms. Should you choose to opt for our Full Management Service we offera low cost ‘Rent Guarantee Scheme’ to help ensure against non- adjudicators decision. Amended by the localism Act 2012 reference
payment of rent. (see Lettings and Management Services) to the scheme must be written into the tenancy agreement. To qualify
for the scheme either the landlord or agent must register.
Protecting The Property (See: New Legislation and the Private Rented Sector)
Should you choose our Full Management Service we will endeavour
to visit your property on a 12-weekly cycle and provide you with a
Inventory and Schedule Of
written report. Our experience in the residential lettings field suggests Condition Report
that if tenants are aware that the property and the conduct of their As your Managing Agent, Pattinson Rentals will prepare a
tenancy are being closely monitored, they are more likely to invest a comprehensive ‘Inventory and Schedule of Condition’ of the property
higher standard of care in the property, and regard it as their ‘home’. prior to the commencement of the tenancy. This document, which
As Managing Agent our right to visit the property on a ‘Quarterly Cycle’ will be agreed with both the landlord and tenant, will help assess
is included in the Tenancy Agreement subject to prior notice with the any damage or loss at the end of the tenancy and is of increased
tenant. Should you wish to visit/inspect the property yourself during importance since the introduction of ‘Tenancy Deposit Protection’.
the tenancy, we can arrange this with the tenant provided prior notice
is given. Tenancy Agreement Renewals
Two months prior to the end of the fixed term agreement we, as your
Managing Agent, will contact both you and your tenant to discuss
Repairs And Maintenance your wishes and instructions regarding renewal of the tenancy. Based
Overall maintenance of the property and the appliances supplied is the on your instructions we will take the relevant action with the tenant
responsibility of the landlord. Repairs will be required to every property to either renew their tenancy, or book a ‘Check Out Inspection’ to
throughout the duration of the tenancy, and as a landlord, you must coincide with the expiry date of the agreement. If the lease is not to
budget for such events plus the repair or replacement of major be renewed, we will remarket the property immediately to ensure
electrical appliances as they deteriorate due to age/wear and tear. minimum void periods.
Should you select our ‘Full Management’ service we will make
NEW LEGISLATION AND
arrangements with our list of approved contractors, or those of your
choice to carry out the necessary works.
We will agree at the start of the management contract the level of THE PRIVATE RENTED
SECTOR
responsibility you wish us to have in respect of arranging repairs, and
proceed without recourse to you, or as agreed. Some landlords prefer
to carry out or accept responsibility for repairs once they have been
reported to them by us, or in the case of our ‘Tenancy Only’ service by
the tenant.
Housing Act 2004
Brought onto the statute books in November 2004, the Housing
Damage Act 2004 was implemented in stages over the next few years. The
On signing the tenancy agreement the tenant lodges a ‘Damage Act meant several important changes to the private housing sector
Deposit’ or ‘Bond’. This is held in a secure client account throughout and impacted on private sector landlords and how they operate. The
the tenancy by Pattinson Rentals, as your Managing Agent. As following provides a brief summary of The Act, and is aimed at raising
provision for damage caused by misuse by the tenant often allowing awareness amongst landlords of the implications that The Act has on
for anything regarded as fair wear and tear. If you choose to appoint their businesses.
Pattinson Rentals on a ‘Tenancy Only’ basis, the ‘Damage Deposit’ will
be transferred to yourself at the commencement of the tenancy and There are seven main parts of the Housing Act 2004:
must be protected in accordance with the prevailing Tenancy Deposit
Protection legislation. •• Part 1 - Housing Conditions
•• Part 2 - Licensing of Houses in Multiple Occupation
At the end of the tenancy, tenants in ‘Managed Properties’ are •• Part 3 - Selective Licensing of Other Residential Accommodation
‘Checked Out’ and an assessment is made by comparison against •• Part 4 - Additional Control Provisions in Relation to Residential
the original inventory for any damage etc. which cannot be reasonably Accommodation
accepted as fair wear and tear. We will negotiate with yourself and the •• Part 5 - Home Information Packs (Revoked)
tenant and agree the amount to be withheld based on estimates, and •• Part 6 - Other Provisions
release the net amount to the tenant on your instruction. •• Part 7 - Supplementary and Final Provisions
If the landlord and the tenant are unable to agree, then independent
The outdated Housing Fitness Standard as defined by the Housing
arbitration should be invoked. With effect from 6th April 2007
Act 1985 will be replaced by the Housing Health and Safety Rating
‘Tenancy Deposit Scheme’ was introduced whereby tenants and
system (HHSRS). This system is a risk-based approach which focuses
landlords unable to agree settlement of a ‘Bond Dispute’ may refer
on the health impacts a property has on its occupants rather than
the matter to the ‘Alternative Dispute Resolution’ (ADR) which will
purely on building defects. Therefore it is a ‘people based’ system and
give judgement on receipt of the relevant documentation and the
amounts to a health and safety assessment. The HHSRS has an effect
agent/landlord will be instructed to release the deposit as per theon housing standards, particularly in the private rented sector. It means participate in an insured deposit scheme themselves or through their
local authorities have extended enforcement powers to deal with letting/managing agent. Amended by The Localism Act 2012 failure
issues they were previously been unable to tackle such as improving to do so, and to produce proof to the tenant within 30 days of receipt,
properties which have tripping hazards, for example. An assessment will have serious consequences and may result in the landlord being
of a property carried out by a local authority will always consider the fined and forced to return the deposit to the tenant. He will also be
most vulnerable resident, who may or may not be resident at the unable to regain possession of his property by serving a Section 21
time of assessment. The HHSRS is complicated and impacts many Notice, or to enforce the terms of the tenancy agreement by making
properties. A tenant who refers to the local authority may trigger an deductions from the deposit at the end of the tenancy.
inspection, and as a result of the new regulations the authority now
has more options and power to ensure that property is made safe. Should you select our Full Management service you will enjoy the
Local Authorities will also have the power to selectively license benefits of Pattinson Rentals’ membership of the ‘The Dispute
all landlords in areas of low demand or in areas where there are Service’.
anti-social behaviour problems. It could also apply to areas where
there is a high density of specific types of housing such as student Further information can be obtained from the Government website:
accommodation. This is a tool which allows Local Authorities to target www.direct.gov.uk/tenancy deposit or the leaflet hotline:
areas in which they are seeking to improve the management of private 0845 609 0696
rented housing, and lead to a constructive dialogue between landlords
and Local Authorities.
Energy Performance Certificates:
With effect from 6 April 2006 the definition of a House in Multiple (EPC)
Occupation (HMO) as defined by previous Housing Acts changed.
Nationally, mandatory licensing of HMOs which are 3 or more storeys Initially introduced on 1 October 2008 any new residential letting
and occupied by 5 or more people came into force on 6 April 2006. requires the landlord to provide an Energy Performance Certificate
In addition, there are discretionary powers to license HMOs that fall (EPC), valid for 10 years, to protect prospective tenants.
outside of this mandatory requirement.
Licenses for HMOs last for a maximum of 5 years and are non- Amended by The Energy Performance of Buildings (Certificates and
transferable. A person controlling an HMO must have a licence for Inspections) (England and Wales) (Amendment) Regulations 2011
each property. It is a criminal offence not to have a licence when a (amending regulations) the following requirements were introduced:
licence is required, and punishable by a fine of up to £20,000.
•• As from the 6th April 2012 an EPC MUST BE COMMISSIONED
Empty Dwelling Management Orders allow Local Authorities to take BEFORE MARKETING for both domestic and non domestic
into management, and return to occupation long term privately owned buildings and the full 1st page has to be displayed.
properties. Whilst the owner will retain legal ownership of the property
the aim of this part of The Housing Act 2004 was to tackle problems •• Estate Agents and Letting Agents must retain evidence that the
associated with empty properties such as anti-social behaviour, and EPC has been commissioned and have 7 days to display the
help provide homes for the homeless or unsuitably housed. report. This has been reduced from the current 28 day period.
•• The option to display just the asset rating graph will be removed
Tenancy Deposit Protection and the full 1st page of the EPC must be displayed with all sales
Scheme or rental written particulars.
First introduced on 6th April, 2007 the ‘Tenancy Deposit Protection The ‘New Style’ EPC has been changed to ensure increased impact
Scheme’ came into force whereby tenants and landlords unable on the measures to improve the energy efficiency of the building.
to agree settlement of a ‘Bond/Damage Deposit Dispute’ may It also includes information on ‘The Green Deal’ and ‘Eco-Funding’
refer the matter to ‘Alternative Dispute Resolution’ (ADR) which will available from Autumn 2012. Once obtained the certificate will be
give judgement on receipt of the relevant documentation and the valid for 10 years but can be renewed earlier if the landlord wishes
agent/landlord will be instructed to release the deposit as per the to reflect any improvements made. However there will be no legal
Ombudsman’s decision. Reference to The Scheme must be written requirement for a new EPC to be issued if landlords have upgraded
into the tenancy agreement. To qualify for the Scheme either the their property in response to earlier recommendations.
landlord or agent must register.
All lettings within the 10 year valid period will be able to make use of
The Scheme applies to all Assured Shorthold Tenancies that begin on the same Energy Performance Certificate but the law states a landlord
or after the implementation date, as well as to all tenancies renewed must show it to any prospective tenant. The result of an Energy
after that date. Performance Certificate will be another one of the factors Tenants will
consider when choosing a rental property and so the incentive for
Since the legislation came into force landlords are no longer permitted energy saving measures to be carried out is important.
to hold tenants’ deposit as they did previously. They will have to
either pay the deposit into a custodial scheme or pay a premium toLetting Property - The Tax Position Non-Resident Landlords
A frequently asked question is “As a landlord, will I have to pay tax on If you live abroad or are working abroad for an extended period you
my rental income?” The simple answer is “Yes”, but “it depends!”. will normally be required to pay income tax on the net income. As a
managing agent, Pattinson Rentals have certain obligations relating to
the collection of income tax from non-resident landlords.
Income Tax
If you chose our Full Management Service, Pattinson Rentals are
Income tax must be paid on the net income from letting a property required to deduct tax (equivalent to the basic UK rate of tax), and
irrespective of where you live, if you are a resident or non-resident pay this to the Inland Revenue unless we receive specific written
landlord. As a managing agent we are required by the Inland Revenue exemption from the Inland Revenue not to do so. This exemption
to disclose the names of all our client landlords. must be applied for by the landlord on the relevant form which we
will provide you with at the ‘contract signing’ stage. If exemption is
The letting income on which you will be taxed is the net income from granted, this will allow us to pay you rent without deduction of tax.
the property; that is the gross income less allowable expenses which Note that at the end of each tax year your position must be addressed
are incurred in letting the property. These usually include: with the Inland Revenue by submitting a UK tax return stating rental
income details and expenses. If you receive rent gross and fail to
•• Loan interest. submit your tax return, your exemption may be withdrawn.
•• Insurance, ground rental service charges.
•• Costs of providing services which are including in the rent, We would strongly advise seeking professional advice from a tax
eg. water, gas. accountant if you are non-resident.
•• Accounting and legal costs.
•• Costs of repairs, renovation and redecoration.
•• Agents fees. Taxation Tips
In addition, there is an allowance for wear and tear relating to furniture, •• Never conceal rental income from the Inland Revenue.
and fixtures and fittings, but only if the property is furnished and no •• Non-resident landlords must ensure they apply to the Inland
charge has been levied for damage to these items. Revenue for exemption so that rent can be paid gross.
•• Appoint a reputable specialist tax accountant
There are few problems for most landlords in connection with income •• Retain all documents and invoices relating to rent and repairs etc.
tax on rented property, and in many cases these expenses and •• Retain copy of detailed inventory which may help avoid disputes
allowances can exceed their income and remove any tax liability. over replacement costs, which are allowable if no ‘wear and tear’
Please note there are certain expenses that are taxable including: allowance is claimed.
•• Preparing a property for letting.
•• Cost of initial furnishings or improvements.
•• Capital element of mortgage repayers. NB: If in doubt, seek professional advice from a reputable tax specialist /
accountant.
However, given the importance of this issue and its complexity, we
would recommend seeking professional advice from a tax specialist.Contact us at your nearest
branch for further details.
ASHINGTON HEXHAM PONTELAND
95 Station Road, Ashington, 15 Priestpopple, Hexham, The Smithyside, 7 Bell Villas, Ponteland,
Northumberland, NE63 8RS Northumberland, NE46 1PH Northumberland, NE20 9BD
t: 0845 1461581 - f: 01670 853606 t: 0845 1461593 - f: 0434 607559 t: 0845 1461602 - f: 01661 860118
BEDLINGTON HOUGHTON-LE-SPRING PRUDHOE
17-18 Market Place, Bedlington, 14a Newbottle St, 21 Front Street, Prudhoe,
Northumberland, NE22 5TN Houghton Le Spring, DH4 4AB Northumberland, NE42 5HN
t: 0845 1461583 - f: 01670 827765 t: 0845 1461594 - f: 0191 5120095 t: 0845 1461603 - f: 0661 836640
BLYTH JARROW SEAHAM
76 Waterloo Road, Blyth, 67 Ellison Street, Jarrow, NE32 3JU 17 Adelaide Row, Seaham,
Northumberland, NE24 1DG t: 0845 1461595 - f: 0191 4280263 County Durham, SR7 7EF
t: 0845 1461584 - f: 01670 369833 t: 0845 835 1331 - f: 0191 513 1103
LOW FELL
CHESTER-LE-STREET 425 Durham Road, Low Fell, NE9 5AN SOUTH SHIELDS
17 North Burns, Chester Le Street, DH3 3TF t: 0845 1461596 - f: 0191 4821716 7 Charlotte Terrace,
t: 0845 1461585 - f: 0191 3893078 South Shields, NE33 4NU
MORPETH t: 0845 1461604 - f: 0191 4270015
CONSETT 13 Newgate Street, Morpeth
55 Medomsley Road, Consett, Northumberland, NE61 1AL SUNDERLAND
County Durham, DH8 5HQ t: 0845 1461598 - f: 0670 516613 51 Fawcett Street, Sunderland, SR1 1RS
t: 0845 1461587 - f: 01207 583771 t: 0845 1461606 - f: 0191 5145047
NEWCASTLE - CITY
CRAMLINGTON 21/23 Ridley Place TEESIDE
Blagdon House, Smithy Square, Newcastle upon Tyne, NE1 8JN 20 Bishop Street, Stockton on Tees,
Cramlington, Northumberland, NE23 6QL t: 0845 1461599 - f: 0191 2220314 Cleveland, TS18 1SY
t: 0845 1461588 - f: 01670 457346 t: 0845 1461605 - f: 0642 614772
NEWCASTLE - TYNE
DURHAM CITY BRIDGE WALLSEND
88 Claypath, Durham City Fairway House, 2 Hills Street 157 High Street East, Wallsend
County Durham, DH1 1RG Gateshead, NE8 2AS Newcastle Upon Tyne, NE2 87RL
t: 0845 1461589 - f: 0191 3831535 t: 0845 155 0111 - f: 0191 477 3798 t: 0845 1461607 - f: 0191 2626377
FOREST HALL NEWCASTLE - WEST ROAD WASHINGTON
17a Station Road North, Forest Hall 158 West Road, 55 The Galleries, Washington
Newcastle Upon Tyne, NE12 7AR Newcastle Upon Tyne, NE4 9QB Tyne and Wear, NE38 7SA
t: 0845 1461590 - f: 0191 2150063 t: 0845 1461609 - f: 0191 2720429 t: 0845 1461608 - f: 0191 4154313
GOSFORTH NORTH SHIELDS WHICKHAM
210 High Street, 3 Northumberland Place, North Shields 4 Fellside Road, Whickham
Gosforth, NE3 1HH Tyne and Wear, NE301QP Newcastle Upon Tyne, NE16 4JU
t: 0845 1461591 - f: 0191 2130193 t: 0845 1461600 - f: 0191 2961549 t: 0845 1461610 - f: 0191 4960139
HEATON PETERLEE WHITLEY BAY
224 Chillingham Road, Heaton, 2 Yoden Way, Peterlee 189A Park View, Whitley Bay
Newcastle, NE63 8RS County Durham, SR8 1BP Tyne and Wear, NE26 3RD
t: 0845 1461592 - f: 0191 2764282 t: 0845 1461601 - f: 0191 5183493 t: 0845 1461611 - f: 0191 2532566
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