Landlords
WHY
key-moves?
- A
complete service available
- Finding
a Tenant
- Obtaining
references
- Collecting
rent
- Inspecting
the Property
- Investing
the proceeds
- Complete
ADVICE
Have
you considered what is involved?
Do
you need your lenders consent?
If
you have a loan it is likely that your
mortgage conditions will prohibit you from leasing out your property
without your Lenders consent.
Breach of your mortgage conditions may entitle your lender to
repossess your property. Even
if they consent your Bank or Building Society allow you to lease your
property they may make additional charges or impose extra conditions and
they are obliged to advise the Inland Revenue. They may wish to agree the lease terms themselves and serve
notices on the Tenant to protect their interests. We can approach your lender on your behalf in order to
ensure that you comply with their requirements.
Will
you get a good Tenant?
Although
we recommend that references be obtained from a previous Landlord or
Employer and/or a Bank, references do not guarantee that the Tenant will
look after your property as well as you might.
You should allow for this and should not leave anything of
particular sentimental value.
Who
pays what?
The
Tenant is usually expected to pay telephone, electricity, gas and Council
Tax bills, but the Landlord will be liable for repairs to the property and
for keeping the property wind and watertight.
What
if the Tenant damages the property?
A
deposit of one month's rent is generally paid by a Tenant at the
commencement of the lease in lieu of any damages and will be returned to
the Tenant at the end of the lease. If
damage beyond this value is caused you may require to sue the Tenant and
this can cost time and money.
What
if the Tenant won't leave at the end of the Lease?
You
cannot evict a tenant in any circumstances without a Court Order.
There is always a risk that the Tenant will not leave at the end of
the Lease. Tenants do not now
enjoy automatic security of tenure but it is still not possible to eject a
Tenant without having grounds set out in terms of legislation.
We shall ensure that you, as Landlord, have maximum protection in
terms of the current legislation and also that any necessary Notices
required are served timeously.
What
if the Tenant leaves during the currency of the lease?
The
Tenant is, of course, under a contractual obligation to pay rent for the
full term of the lease. If he
or she defaults, you can pursue him or her for any loss of rent and
expenses incurred in finding a new Tenant, but the expense in doing so may
not be justified and often it can be a lengthy process to pursue matters
through the court.
What
if the Tenant stops paying rent?
Again,
Court Proceedings can be initiated and in certain (but not all)
circumstances the Tenant can be removed from the premises.
Even if you consider Court Action justified court time delays mean
that it may be some time before you recover any money.
Is
it viable from a monetary point of view?
Bear
in mind
-
Tax
implications - If you let out your property you will be liable to pay
income tax on any profit made by you although you may be able to set
off against your income the cost of repairs and improvements you may
make to the property throughout the duration of the lease.
-
Extra
insurance costs – Some insurers will not insure leased properties
particularly if let to students or alternatively may charge higher
rates.
-
Miscellaneous
outlays - Generally a landlord requires to pay the costs of leasing
including advertising charges, Legal agents fees, Stamp Duty and the
cost of obtaining a Bank Reference from a prospective Tenant's Bankers
-
Factoring
fees - Include the cost of regular checks of the property, collecting
the rent and dealing with the Tenant.
-
Lost
Rental - Allow for any period when the property is unlet or for which
no rent is received.
-
Maintenance
Costs - You should also consider the cost of keeping the property in
good repair. You may have a number of obligations in relation to
the standard of furnishings and other safety matters including
obligations to check furnishings and Gas Installations and appliances
comply with regulations.
INTERESTED
IN FINDING OUT MORE, email: info@key-moves.co.uk
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