RESIDENTIAL LETTING
Step by Step Guide to DIY Letting
How to let
The practical aspects of letting a residential property are fairly straightforward: advertise for a tenant, prepare an inventory of the contents, serve the appropriate statutory notices and exchange a suitable form of tenancy agreement, which ensures your right to recover possession. The 1988 Housing Act has completely altered the format of residential lettings to generally assist landlords and the 1996 Housing Act consolidated the current regulations to further strengthen their position.
The key steps to a successful letting involve:
Your Building Society or Bank
If your property is mortgaged with a Building Society or Bank, it will be necessary to obtain their consent to letting and their approval of the form of tenancy agreement being used.
Insurance
Take care to ensure that both the structure and the remaining contents of your home are properly insured in your absence and that the policy is not invalidated. Also consider other forms of insurance for the property now that it is to be let; such as rent protection insurance, legal fee protection and also special buildings and contents cover.
Selecting the tenant
The most important aspect of any letting is a suitable tenant. Detailed and informative references should be obtained for any prospective tenant before you agree on letting. Credit checks and checks for county court judgements may be sensible in certain cases.
Collecting the rent
It is imperative that rent is collected as soon as it falls due and that any late payer is chased at the earliest opportunity. The landlord of a commercial property has a right to distrain for his rent. This right is not available to the landlord of a residential property who must recover arrears of rent through the Courts. Careful monitoring of rental payments and early action are the only ways of effectively reducing the risk of lost rent.
Paying the outgoings
When you let the property and have your tenant installed, don't forget there are many bills which must still be paid. These could include water rates, final accounts for electricity or gas and routine repairs. Make arrangements to have these dealt with in your absence. Liability for Council Tax also needs to be resolved.
Compliance with current regulations
It is essential that furniture left in the property complies with the Furniture and Furnishings (Fire Safety) Regulations 1988 and that all gas appliances are checked and certified as stipulated in the Gas Safety (Installation & Use) Regulations 1994. Electrical installations should comply with the Electrical Equipment (Safety) Regulations 1994. Non-compliance can result in criminal prosecution in certain circumstances; it is important to remain aware of your responsibilities.
Keeping an eye on things
Arrange to have the property inspected and the inventory checked regularly. A visit every 6 months may be sufficient. A quarterly inspection is preferable.
Repairs
Make arrangements to ensure that urgent repairs can be dealt with in your absence and that any items of outstanding or routine maintenance will not be neglected.
Letting Service Enquiries
For further information on our Residential Letting and Management services, please complete the form below or contact Jill Elkington on 01522 698899.