Lettings

Landlords

We provide a fully comprehensive range of services designed for the Landlord in the process of renting out their properties.

At Pettys we offer three types of letting service, a let only and two fully managed services.  Your decision depends on whether you wish to remain in control of rent collection and inspections or leave the management of the letting entirely to us.

Bronze Service

On receipt of instructions to let your property we will take care of the following:

• Marketing – Placing a ‘To Let’ board at the property and circulating details of your property to potential tenants throughout Pettys and the Home Sale Network using the Internet and the local press together with our substantial database.
• Viewings – Accompanying prospective tenants and advising you immediately of any tenancy applications.
• Vetting of Potential Tenants – Interviewing and obtaining credit references and guarantors when necessary.
• Tenancy Agreement – Preparing the documentation required by current legislation.  Collecting the first month’s rent and deposit.
• Carry out the Inventories and Schedule of Conditions you need prior to the letting.
• Readings of the utilities will be given to your chosen provider with the exception of British Telecom, however we cannot guarantee that our readings will be recognised.

Silver Service

In addition to all the Let Only Services we will carry out the following:

• Collect the rent and pay it over to you by BACS transfer less our fees and expenses.
• Hold the tenant’s security deposit in a tenancy deposit scheme.
• Inspect and report on your property, co-ordinating minor repairs and settling invoices from rent received.
• Advise you when the tenancy is coming to an end and seek your instructions for re-letting or selling the property.
• Arrange interim inspections with written report.
• Agree any dilapidations (over and above fair wear and tear) with tenants before releasing their deposit.
• Arrange any necessary cleaning and minor repairs deducting the cost from the tenant’s deposit where applicable and agreed.
• Monitoring rent payments and alert you if the tenants fall behind or breach the tenancy agreement.

Gold Service

In addition to the Let Only and Fully Managed Service:

• Rent Guarantee Insurance for tenants non payment of rent with no excess.  In the event of proceedings for eviction all legal expenses covered.

Helpful Hints for Owners and Landlords in brief

Upon deciding to rent your property

• Apply for mortgage lenders consent.
• Notify your insurance companies.
• Obtain gas and EPC certificates.
• Decide what furniture and/or fittings you intend to leave in the property.  It is not advisable to leave bedding, televisions, videos and personal items.
• Ensure furnishings to be left in the property comply with fire regulations.
• Carry out any necessary repairs and remove anything potentially dangerous.
• Make sure the property is in a clean and tidy condition, particularly the kitchen, bathroom, carpets and curtains – as YOU would hope to find it if moving in yourself!  A tenant can tell if the property is well cared for and is more likely to look after it during the tenancy if it is clean at the start.
• Overseas landlords apply for tax exemption certificates – please ask Pettys letting department for more details.

Immediately you are notified that an application for tenancy has been received by Pettys, please:

• Remove all personal items from the property.
• Remove all unwanted and non-compliant furniture.
• Ensure that the property is clean and the garden is tidy.
• Arrange re-direction of your mail via the Post Office.
• Landlord to inform all utility companies of the change of occupancy along with British Telecom or other supplier that you will not be requiring further use of the telephone line from the commencement of the tenancy.  Whilst Pettys try to ensure that utility companies are furnished with the correct readings, Pettys cannot be held responsible for the utility companies failure to recognise the information provided.
• Let your local Pettys branch have two separate sets of access keys/one set on a Let Only.
• Ensure that the central heating boiler pilot light is lit.
• Should you require legal protection, buildings, contents insurance cover, inform Pettys lettings department.

NB  INSTRUCTION MANUALS or LEAFLETS, in ENGLISH, must be left at your property for all APPLIANCES, THE CENTRAL HEATING BOILER AND SYSTEMS before the Schedule of Condition & Inventory can be undertaken.  By LAW, copies of these must be given to each Tenant at the commencement of the Tenancy.  ALTERNATIVELY, CLEAR HAND WRITTEN OR TYPED INSTRUCTIONS WILL BE REQUIRED.  (Failure to provide these will result in unnecessary delays).

Gas and Electrical Safety

The General Products (Safety) Regulations 1994 require that all goods must satisfy general safety provisions.  The law requires that all electrical appliances are safe and strongly recommends that they are tested.

In 1995 there were 27 deaths from electrocution within the home and 39 in the workplace; 23,765 people suffered electric shocks and an alarming 7,500 fires were caused by faulty electrical appliances and leads.

The Electrical Equipment (Safety) Regulations 1994 and The Plugs & Sockets etc (Safety) Regulations 1994 state that supplying unsafe electrical goods is an offence.  When an unsafe appliance is found in rented accommodation, Trading Standards check that the landlord or agent has taken all reasonable precautions to avoid supplying an unsafe item.  In the event of an incident in a property involving electricity the landlord must be able to demonstrate that his supply and appliances are safe, he can only do this if it is tested professionally.  Duty of care demands that this is done on a regular basis, particularly at the point at which the property first becomes available to let.

The Gas Safety (Installation and Use) Regulations 1994 state that all let and managed property MUST be annually tested for safety.  Failure to comply with these regulations can result in a substantial fine or even, in the worst cases, imprisonment.  Only CORGI registered businesses using ACOP’s qualified engineers can carry out work on gas appliances and piping.  All landlords have a DUTY OF CARE to ensure their tenant’s safety.  To this end battery operated smoke alarms are advisable.  Once a landlord has supplied an alarm the tenant becomes responsible for the battery.  Pettys uses only fully qualified contractors to carry out both gas and electrical safety tests.  These firms not only carry the right qualifications but have Quality Assured standards and Professional Indemnity Insurance.  Our Contractor’s Safety Inspectors are all qualified to the latest industry-recognised gas and electrical standards.  As legislation increases and qualifications evolve, these engineers keep pace because training is on-going.  Safety Inspectors regularly attend manufacturer courses to enhance their knowledge of – for example – specific boilers, old and new.

 

Information for Overseas Landlords

Section 42a Income and Corporation Tax Act 1988 and Taxation of Income from Land (Non-residents) Regulations 1995, SI 1995 No 2902.

For Landlords who live abroad the Pettys Full Management Service is available.  Overseas landlords are regarded as non-UK residents for tax purposes, and need to apply to the Inland Revenue for Non-Resident Landlord status.  A landlord that has already been approved to receive rents without deduction of tax from the Inland Revenue must contact the Inland Revenue and request that an NRL8 (approval notice) be issued to Pettys Estate Agents, Lettings Department, 26 Manchester Road, Burnley, BB11 1HH.  A landlord who does not hold approval will need to apply to the Inland Revenue to be approved for the non-resident landlord scheme.  If the application is successful the Inland Revenue will issue an NRL8 to Pettys.  Pettys letting department holds forms for this (NRL1) and will guide landlords through the whole process if required.  The Inland Revenue issues the following notes as a guide to this scheme.

The Non-resident Landlords Scheme is a scheme for taxing the UK rental income of non-resident landlords.  The scheme requires UK letting agents to deduct Basic Rate tax from any rent they collect for non-resident landlords.  When working out the amount to tax, the letting agent can take off deductible expenses.  Letting agents don’t have to deduct tax if the Inland Revenue tells them not to.  The Inland Revenue will tell an agent not to deduct tax if non-resident landlords have successfully applied for approval to receive rents with no tax deducted.  But even though the rent may be paid with no tax deducted, it remains liable to UK tax.  So non-resident landlords must include it in any tax return the Inland Revenue sends them.

Most applications are dealt with within six weeks (the Inland Revenue Centre for Non-Residents aims to approve 95% of all applications within this time).

Pointers:

• One certificate is required per person; therefore if Mr and Mrs, or several landlords, all parties must apply for an individual certificate.
• If changes in circumstances occur during the tenancy , the agent must receive written confirmation of the change AND the date the change occurred.
• C/O addresses will always be handled as overseas landlords and tax will be deducted until a completed and signed declaration of residential status is received by the agent, the Inland Revenue are very strict with regard to this matter.
• Should a friend or relative be looking after affairs whilst the landlord is abroad, an Enduring Power of Attorney document will need to be made available to the agent.
• Should a professional person (accountant, tax advisor or solicitor) be looking after the affairs for the landlord, the agent will require written authority from the landlord to allow information to be released to that person.
• Landlords who spend part time abroad and part time in the UK over the course of the year will need to apply to join the non-resident landlord scheme using NRL1.
• The scheme does apply to the Armed Forces and other crown servants.  If a member of the Armed Forces or other crown servant had approval pre-1996 they will need to re-apply to join the non-resident landlord scheme using NRL1.
• Some confusion often reigns with the following localities, Isle of Wight and Northern Ireland.  These landlords are NOT classed as overseas.  Southern Ireland (Eire), the Channel Islands and the Isle of Man are classed as overseas.
• Should a landlord choose not to use an agent for the letting of property whilst abroad, the liability for collection of tax, in the event that non-resident status has not been sought, passes to the tenant.

Choosing a Letting Agent

Letting residential property in England and Wales is covered by various Housing Acts, and Landlord and Tenant Acts, as well as various Safety Regulations.  Using a letting agent is by far the best way of ensuring that your property, and you as the landlord, are protected from issues raised by these Acts and Regulations.  YOUR LETTING AGENT WILL OWE BOTH YOU AND YOUR TENANT A “DUTY OF CARE”.  IT IS IMPORTANT THAT THIS DUTY OF CARE IS BACKED UP WITH BOTH “PUBLIC LIABILITY INSURANCE” AND “PROFESSIONAL INDEMNITY INSURANCE”.  ANY FUNDS BELONGING TO EITHER THE LANDLORD OR THE TENANT SHOULD BE KEPT IN A SEPARATE CLIENT ACCOUNT AND NOT USED BY THE AGENT IN THE COURSE OF THEIR BUSINESS.

Why Pettys?

Pettys prides itself on ensuring that we act in the best interests of our clients and provide a comprehensive service backed by all of the required insurances, as well as operating a complaints procedure, should the need arise, which adheres to the Royal Institution of Chartered Surveyors Guidelines.  We have a programme of continuous staff development to ensure that the experts dealing with your asset are always up to speed with the current issues, as well as changes in legislation.  We monitor our safety contractors to make sure that they have all of the required professional qualifications and memberships at all times.  We also have available a range of other specialist insurances designed with both landlords and tenants in mind.  Letting property whether by necessity, or as an investment, within the North of England and North Wales, appears in many publications , to offer the best yields, and who better to let through than the North’s Leading Independent Estate Agent.  For further details please contact your local Pettys branch and we will be only too pleased to discuss the letting of your property further.

Fire and Furnishings Regulations

Since 1 January 1997, all furniture provided in furnished rented accommodation – houses, flats and bedsits – must meet the fire resistance requirements of the Furniture and Furnishings (Fire) Safety Regulations, 1988.

What products to the Regulations cover?

Any of the following:  which contain upholstery:

• beds, mattresses and headboards
• sofa beds, futons and other convertibles
• nursery furniture
• scatter cushions, seat pads and pillows
• garden furniture intended for use in a dwelling
• loose and stretch covers for furniture

The regulations do not apply to:

• sleeping bags or loose covers for mattresses
• bed clothes (including duvets) and pillow cases
• carpets and curtains.  All furniture and loose and stretch covers must carry a permanent label attached showing the item complies with the Regulations.

Properties cannot be let through Pettys when containing non-compliant furniture.  If you require advice or further information about whether furniture complies with the Regulations, you should consult your local Pettys branch.  The responsibility for compliance with the Regulations rests with the person letting the accommodation – this can be estate agents, letting agents, landlords or property managers.

Important Information on Houses with Multiple Occupancy

Notes

From 6 April 2006 mandatory HMO licensing came into force across England.  The Government hopes that this new legislation will raise the standard of accommodation for people living in HMO’s.

Which HMO’s need a licence?

Under the national mandatory licensing scheme an HMO must be licensed if it is a building consisting of three or more storeys and is occupied by five or more tenants in two or more households.  Local Housing authorities have discretionary powers to widen the remit of licensing to also include other smaller HMO’s if they think that enough of them in an area are badly managed.  IF YOU ARE UNSURE WHETHER AN HMO NEEDS A LICENCE CHECK WITH YOUR LOCAL HOUSING AUTHORITY.

What is a Household?

• Couples married to each other or living together as husband and wife (or in an equivalent relationship in the case of persons of the same sex).
• Relatives living together, including parents, grandparents, children (and step children), grandchildren, brothers, sisters, uncles, aunts, nephews, nieces or cousins.
• Half relatives will be treated as full relatives.  A foster child living with his foster parent is treated as living in the same household as his foster parent.  Therefore three friends sharing together are considered, three households.  If a family rents a property that is a single household.

When do I have to apply for a licence?

Mandatory licensing came into force on 6 April 2006.  HMO landlords are encouraged to apply immediately for a licence to avoid the penalties, which were introduced on 6 July 2006; Failure to register for a licence.  Failure to register for a licence is a criminal offence and can result in a fine of up to £20,000.  For more information on HMO’s contact your local housing authority and visit www.propertylicence.gov.uk.

Prospective Tenant Information on the (TDS) Tenancy Deposit Scheme

You may have read in the press that the Housing Act 2004 made provision for both the protection of tenancy deposits and the resolution of disputes over their return.  The legislation came into effect on 6th April 2007.  Now all deposits taken for Assured Shorthold Tenancies will have to be covered by a tenancy deposit protection scheme.

PETTYS HAVE SUCCESSFULLY APPLIED TO BECOME MEMBERS OF THE TDS MANAGED BY THE DISPUTE SERVICE (TDS) TENANCY DEPOSIT SCHEME.  Deposits held by Pettys and covered by TDS are protected during the tenancy so that they are available to be returned to the tenants if they have met the terms of the tenancy agreement.  Where there is no dispute at the end of the tenancy, Pettys undertake to return the deposit.  Where there is a dispute about the allocation of the deposit and it cannot be resolved after negotiation, Pettys will transfer the disputed deposit and submit appropriate documentation to the Dispute Service.  The matter will be dealt with by the Independent Case Examiner (ICE) fairly, quickly and impartially.  He will apportion the disputed amount and pay to the parties on the basis of his adjudication.  To reflect this mandatory legislation there are now additional clauses within the tenancy agreement.  Please note that there is no charge to tenants as a result of our scheme membership.  If your property is let on a letting only basis and the Landlord wishes to hold the deposit then it is the responsibility of the individual Landlord to ensure that they have designated scheme membership before we can release any deposit.  Until evidence has been provided Pettys will hold the deposit in accordance with the Housing Act 2004.  For more information on The Dispute Service and rules of the scheme please visit www.tds.gb.com.

For more information please click here to contact the Petty Lettings team.