Property Letting Guide (Part 2)... (Part 1) Use of the Property by the Tenant - your Tenant is entitled to use the property during the tenancy period and to be allowed to occupy the property without interference. This basically means that should you wish to enter the property, you should first obtain the tenants permission. If maintenance needs to be carried out or if you need to have items inspected, you should arrange a convenient time with the tenants. You should keep the property in a good state of repair and not do anything which may “persuade” the tenant to seek accommodation elsewhere (such as turn off the services)
Keeping an Inventory - keeping an Inventory of items provided for usages by the tenant is absolutely essential, this should be presented to the tenant for checking when they first obtain the property and it is a good idea to make them sign and return one copy to you. Most disagreements relating to the return of the deposit relate to problems with Contents that have been supplied. We have a basic Inventory, which can use by clicking here. It will help to minimise disputes if this is checked with the tenant at the commencement of the contract and again at the end.
The Damage Deposit - it is typical for a Landlord to demand a deposit upfront, usually one months rent with two being a maximum. This deposit must be kept separate and should not be used to offset rent arrears. It can be used to pay for breakages etc but Landlords are not allowed to withhold monies for fair wear & tear. At the end of the tenancy term, the damage deposit should be used as follows; -
You may deduct the cost of replacements, repairs & cleaning, ie the items you are entitled to use the damage deposit for. -
You may then deduct any rent arrears -
The balance must be returned to the tenant. The assured short hold tenancy agreement states that you should return the deposit to the tenant within one month of the end of the tenancy. Where a dispute arises about deductions from the tenancy deposit, it is sensible to be as reasonable as possible. You should be aware that if a determined tenant takes you to court he or she is likely to receive a sympathetic hearing. Be prepared to have to argue your case, you should keep records, including amounts paid etc and dated photographs can be of real help when proving damage was done before a certain date.
Tenants Responsibilities - of course the tenant will have responsibilities as well and these are laid down in the tenancy agreement. Although the law states that the Landlord is responsible for repairs to the property, the tenant will be responsible for any damages which are due to his own fault. Generally, the tenant is also responsible for the interior condition of the property, the landlord can claim this from the tenant but the amounts must be reasonable.
Rent Reviews - if you wish to increase the rent at the property, you will need to serve the proper notice to the tenant. They in turn can challenge the amount of rent providing it is made within the first 6 months tenancy agreement. The rent assessment committee will compare your rent to others in the area to help decide if it is a fair amount charged. It may be an idea to insert a rent review clause within your tenancy agreement, particularly if you feel your tenant is likely to want to stay for quite some time.
Ending your Tenancy - particular attention must be applied to this procedure, and the correct documents must be served by you if you wish to repossess your property. You must submit a notice to the tenant giving at least two months notice although the tenancy cannot finish before the end of the agreed period. For property in England & Wales, if the notice is served after the tenancy agreement has finished, the tenant must be given two months to quit the property. In Scotland things are slightly different and if no notice is served to reacquire the property, a new tenancy agreement begins for a period mirroring the original, this is called “tacit relocation” and if you require the return of your property, you must submit the correct notice two months from the end of the new period. You can of course serve notice by placing a letter addressed to the tenant through the letter box, but actually physically handing the notice to the tenant may be more appropriate. Always keep a note of the date that the notice was served and stay in contact with the tenant to ensure the process is a smooth as possible.
What if the Tenant wants to leave early? - you may find that your Tenant wants to leave your property prior to the end of the agreed period. They are responsible for the rent for the whole period but in practice it may be beneficial to help them by trying to locate a new tenant, the Office of Fair Trading encourage Landlords to be helpful and allow the tenancy agreement to be broken (but not in the first three months) if a suitable new tenant can be sourced.
Next Steps - we have provided these notes as a general guide to help assist you with some of the processes and procedures , if you are in any doubt as to your obligations, we recommend that you seek professional assistance. Copyright Assetsure Limited 2010Assetsure is an Appointed Representative of Intasure, a trading name of Blenheim Park Limited who are authorised and regulated by the Financial Services Authority. Assetsure Limited is an appointed representative of Highhouse Insurance Services Limited who are authorised and regulated by the Financial Services Authority.
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Cover for residential buy to let landlord property acquired for letting
