Information for Landlords
It is our aim to make sure that if your property is placed with us you are entirely happy and you will be encouraged to discuss concerns and worries.
We are happy to visit your property, carry out an inspection and provide you with advice on the current rental value and guidance on any issues. We can advise you on all aspects of furnishings, fittings and decoration.
When a tenant is found we use an independent referencing company who check their financial status for their credit worthiness, employment history and previous landlord checks.
We prepare an inventory/schedule of condition and take photographs, which are checked by the landlord and tenant at the start of the tenancy.
Only when you are satisfied with the tenant will we proceed to preparing the Six Month Assured Shorthold tenancy agreement. This agreement has been approved by Solicitors, Banks and Building Societies.
The rent, deposit and pet deposit (if any) are collected before they take over occupation and held in our clients account. A standing order mandate is also completed for future rent payments. Meter readings are taken and the utility companies are informed of the new occupiers.
Once the tenant has moved in we are always on hand to deal with any maintenance issues, we will always try to contact you first prior to any expenditure. Obviously in an emergency, work may be done without contacting you first; we are aware that this is a weakness in some letting agents.
Because of our fair approach we have been recommended to new Landlords who have felt they are being shortchanged with other companies.
Legal Issues
The following information is intended only as a guide and should no way constitute a detailed interpretation of the complete regulations.
Gas Safety (Installation and use) Regulations 1988
These cover all gas appliances, flues, meters and associated pipe work and require Landlords to ensure that appliances remain safe at all times and are checked and certified at least once every 12 months.
A Landlord's certificate must be provided at the commencement of the tenancy to prove that the appliances are safe - a tenancy cannot commence without one.
A record of Corgi registered engineer's checks must be kept. Centurion Lettings Ltd will arrange for the gas safety checks/certificates to be carried out on properties under Full Management once a year.
Furniture and Furnishings (Fire) (Safety) Regulations 1988 Amendment Regulations 1989 and 1993
This act covers all upholstery and upholstered furniture supplied by the Landlord in a rented property, including: beds, pillows, headboards, mattresses, sofa beds, etc.
Any furniture that does comply with the regulations should have a label attached to the item saying that it does comply with the 1988 fire regulations. Any furniture without the label will have to be removed.
Furniture manufactured between 1980 and 1990 cannot be supplied to a tenant unless it has been professionally re-upholstered with conforming materials, fire retardant spray treatment is not acceptable by the DTI as it is ineffective in affording protection to foam fittings.
The Electrical Equipment (Safety) Regulations 1994
These regulations apply to all persons, who in the course of business, let accommodation which contains electrical equipment. If Landlords are supplying the electrical installation and any connected appliances it is essential that they are compliant.
There is currently no legal requirement for Landlords to have a formal annual safety check on electrical equipment. However, this is open to interpretation. As far as Trading Standards are concerned a Landlord must be able to demonstrate that electrical appliances are safe before the property is let. Should any piece of electrical equipment have a fault, which results in injury or fatality the person responsible for supplying the equipment could be prosecuted therefore. Centurion Lettings Ltd recommends annual checks of all electrical appliances by professionals.
Landlords should note that the maximum penalty for non-compliance with these regulations is a fine of £5000 or 6 months imprisonment.
Centurion Lettings Ltd is annually audited by NSO Associates of Chelmsford to ensure that clients money is being managed in the correct manner.
Taxation of letting income
The details shown are only a guide and are correct at the time of printing. You should seek the advice of your professional adviser or tax office.
Overseas, non-UK resident Landlords
The non-resident Landlords (NRL) scheme is for taxing the UK rental income of persons whose 'usual place of abode' is outside the UK. If you are treated as a non-resident Landlord you still have to pay any UK income tax due on rents arising in the UK.
Unless the Landlord can provide Centurion Lettings Ltd with an exemption certificate from the Inland Revenue, we are obliged by law to deduct basic rate tax from rents received and account to the Inland Revenue on a quarterly basis. Landlords are responsible for obtaining their own exemption certificate, which are issued to the agent and are not transferable. Exemption certificates are required by any person named, as landlord, on the agreement when living overseas.
Reducing Tax Liability
As a landlord the Inland Revenue will view you in the same way as a business, meaning that costs and expenses incurred may be offset against the rental income. These expenses can substantially reduce or eliminate your tax liability. The Letting income on which you are subject to tax is gross income, less certain expenses incurred which usually include:
- Loan interest (subject to conditions)
- Rent, rates and ground rent
- Cost of providing services included in the rent
- Professional fees, agents, accountancy and legal fees
- Cost of repairs
- Maintenance charges
- Water rates
- 10% wear and tear allowance (furnished properties)
Centurion lettings Ltd
10 Greenway Business Centre
Harlow Business Park
Harlow
Essex
CM19 5QE |
