Landlords

Who should be informed of my plans to let the property?

If your property is mortgaged, the lender should be informed. If the property is leasehold you may also need to inform the landlord. Contents and buildings insurers too. (If you have problems we can arrange insurance specifically designed for landlords.)

Is it better to let furnished or unfurnished?

An unfurnished property can be just as easy to let as furnished but we advise landlords to be flexible. Storing your furniture saves wear and tear but if it costs money you may be as well leaving it in the property. We can market your property as furnished, part furnished or unfurnished and then negotiate the level of furnishings required by an interested applicant. A ready furnished property, however, usually gives a better first impression when viewing.

What should be left in the property?

Furnished property should be let with the basic essentials for living including things like vacuum cleaners, washing machines. Dishwashers, microwaves, telephone points and Broadband connection are optional although, with increasing competition for quality tenants, we would recommend supplying them - although repair or replacement is your responsibility.

Beds should be clean and mattresses preferably covered with a fitted protector. Linen is provided by the tenant. Flexibility is very much in your interest though; if a particular item is important to a tenant you should considering providing it. Unfurnished properties will usually need at least carpets, curtains and white goods. Do NOT leave valuable family heirlooms or special ornaments.

Are tenants responsible for any damage they cause?

Yes! At the start of the tenancy, we collect a returnable deposit and agree an inventory of contents and condition. At the end of the tenancy the cost of rectifying any damage is deducted from the deposit. (Wear and tear is covered by the Inland Revenue’s 10% depreciation allowance.)

What happens to the deposit?
It is registered with a tenancy deposit scheme administered by TDS (The Dispute Service) and held by us in a separate client account until the end of the tenancy.

Who will prepare the inventory?

We will … free of charge. However, it is advisable to have an independent inventory written by a member of the Association of Independent Inventory Clerks – which would ensure a totally impartial record in case any future arbitration is necessary. We can arrange this but would be chargeable.

Can I stipulate ‘No Pets’ and other things?

Certainly! This is well within your rights but needs careful and sympathetic consideration.
The Housing Act does not want you to be unfair by refusing without good reason and any limitation can reduce the range of interested tenants.

What insurance do I need during the letting?

You are responsible for insuring everything that is yours - buildings and contents, including carpets, curtains, cooker, etc. It is advisable to include Accidental Damage cover and our policies include landlord’s liability cover. You can also insure against loss of rent and any legal costs of repossession. If your present insurer does not provide what you need we can arrange policies specifically designed for landlords - please ask for details. (Tenants are responsible for insuring their own possessions.)

Will my property meet all legal standards required?

Probably, although some adjustments may need to be made. 1988 fire regulations, for instance, require that furnishings should be fire resistant and there are gas and electrical regulations too.

What happens to my property when it is unoccupied?

Before letting we can keep an eye while visiting with prospective tenants but cannot accept any responsibility unless we are instructed as separately contracted ‘caretakers’. This service is also available at the end of a tenancy if the property is not re-let - please ask for details.

Should I employ a gardener?

This depends on the property. For a house - with a large garden and plants that require maintenance - it would be a good idea. For a small garden, that needs only basic maintenance, you could provide equipment – such as a small lawnmower - so the tenant can at least keep the grass down. For a flat, within a block, the gardening should be part of an existing service contract and included in the rent.

What if the tenant doesn’t pay?

Then we pursue the debt … and usually succeed. If not you may need to take court action and instruct a solicitor. Your legal protection insurance can cover non payment of rent.

Can I increase the rent?

Yes, of course! Montrose would act for you and arrange this – even though we always re-let at the highest achievable rent and keep you informed of market variations.

Is there ever any tension with a tenant?

Provided tenants feel they are getting a fair deal and the property is properly managed, there are no problems. Our service is designed to stand between you and any day-to-day issues that may arise.

Can I get my property back? Will the tenant leave?

Both these questions are covered by the Housing Act 1988 and the Landlord and Tenant Act 1987. Your agreement with the tenant will normally be a form of Assured Tenancy. This ‘assures’ both tenant and landlord of the right to occupy for a specified time only – at the end of which the tenant is obliged to leave if given notice to do so. You must give at least two months’ notice and the tenant must give at least one month.

Will my rental income be taxed?

UK residents are liable for standard rate tax under the Taxes Management Act 1970 Section 79 but there are a number of worthwhile allowances that can include mortgage interest, insurance premiums, maintenance during the tenancy and a managing agent’s fees. A depreciation/wear and tear allowance of 10% of the rental is available for furnished accommodation.

What if I live abroad?

The best thing for an overseas landlord is an exemption certificate from the Inland Revenue - otherwise we must make quarterly payments of 22% of the rent collected less expenses. To cover these payments we will hold 22% of your rent, reconciling the balance to you each quarter. At the end of the year we will send to you, or your accountant, or both, a certificate showing the tax already paid. More information is on HM Customs & Revenue website.

What if I want to sell the property?
This is best done when the property is empty - although the process could start near the end of the tenancy. Before you instruct an estate agent, let us know first as we may be able to introduce a potential buyer to you, at no cost, from among the landlords we deal with. This could even remove the need to ask tenants to leave as most investors would welcome quality tenants already in place!