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Established 1992
Letting a property through Spencers Property Services
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letting property
Getting Organised
Renting your property can be both time consuming and expensive. There
are a number of options and these are discussed in some detail below:
Letting Agents
Letting and property management agents provide a number of different
types of services to landlords.
The level of service will very often determine the amount they charge.
Charges are usually commission, based on the annual rental income of your
property. You should therefore discuss and compare the charges of different
agents in your area. Typically rates vary between 8% and 15% plus VAT.
Some agents deduct the commission upfront whilst others make a deduction
as they collect the rent.
- Introduction Only: The introduction service offered by letting agents
very often gives landlords the most basic of all services available.
It consists of finding suitable tenants for your property, applying
for references, preparing the tenancy the tenancy agreement and collection
of the first month's rent and deposit. The letting agents' charges are
deducted from the first month's rent and deposit. As landlord you will
be responsible for the deposit and for all future property management
issues.
- Rent Collection: The rent collection service includes all the services
offered under the introduction only service, together with a rent collection
service. Once rent is collected the letting agents' rent collection
commission is deducted and balance is paid to the landlord. The landlord
is expected to arrange to inspect the property and deal with any repairs
under the terms of the agreement. The issue of notices to quit are normally
dealt with by the letting agent but the landlord will need to make his
or her own arrangements to deal with all aspects of the tenant moving
out.
- Full Management: The fully managed service offered is the most comprehensive
and deals with almost all the issues of property management required
on a daily basis. Urgent repairs will be undertaken as needed by the
letting agent and quotes will be obtained for other non-essential matters.
The payment for any expenditure will be deducted from rents collected
before any payments are made to the landlord. For landlords who working
or living abroad this service is essential as all matters are left in
the hands of the letting agent
Do it Yourself
The cost of using letting agents can be very expensive and with a little
dedication and effort the majority of landlords should be able to deal
with the proper management of their properties. Property management involves
the following steps:
- Finding Tenants: Letting agents advertise in the local papers and
this is the place to start. Choose a paper that has a large property
to let section. If you look at this section you will see both letting
agents and landlords advertising. The small box adverts normally relate
to landlords who rent out their own properties and the content of these
small adverts will give you an indication of what you need to advertise.
In the majority of cases all you need to do is telephone the paper with
the details you wish to advertise and pay by credit card. The cost of
these adverts is relatively small.
- Prospective tenants will need to be shown your property. If they
wish to rent the property you should ensure that you apply for several
references to include current employer, bank and one other from a previous
landlord or friend.Once satisfactory references have been obtained a
tenancy agreement needs to be prepared for signature. A standard Assured
Shorthold Tenancy agreement can be drawn up by a solicitor or you can
use preprinted stationery. If your property is furnished you should
prepare an inventory list and this should be checked and signed by the
tenant at the time he moves into the property. This list will also need
to be checked when the tenant vacates the property to assess the extent
of any claims for damages.
- Collecting the rent: Rent collection can be made easier by arranging
for payment to be made by standing order or by collecting post dated
cheques. You should check your bank statements to ensure that standing
orders are received on the due dates. If payment is not received you
must contact the tenant immediately to see why payment did not go through
- Repairs should be undertaken as and when required and all expense
invoices retained for taxation purposes. Any repair work undertaken
by third parties should be checked before payment is made, although
is some urgent cases this may not always be possible.
- Deal with day to day matters: During the tenancy period you should
inspect the property to ensure that the property is being maintained
in a tidy and proper fashion. Any matter that requires action from the
tenant should be advised in writing as a form of permanent record. If
necessary you should follow up an inspection with a further inspection.
- Arranging tenant to vacate: You should write to the tenant a month
or so before he is due to vacate to explain the procedure and arrangements
to vacate the property. Include the date, time and indicate that the
property should be left in a tidy manner otherwise you may need to make
a claim against the deposit held.
- The inventory list should be checked when the tenant leaves and missing
or damaged items should be identified. The deposit should be returned
as soon as possible once the extent of any claims has been established.
You should be fair and reasonable with your claims and have sufficient
evidence to support the amount of your claim.
Housing Associations
Housing associations can be used as a good alternative to property rental.
The property is usually rented to the housing association who make all
the arrangements to find tenants for the property. They are responsible
for the tenancy and they enter into individual agreements with the tenants.
You have little say in who the housing association rent the property to.
In many cases the rental periods are longer and in some cases last up
to three years. Rent is normally paid monthly or quarterly in advance.
University
Some universities now run special schemes to provide student accommodation.
As with housing associations the tenancy agreement is with the student
scheme operators and not the individual students. However, landlords do
get to see the students and can be more selective. Deposits or security
for damages is held by the scheme operators who often deal with any claims
for damages.
Each university has its own rules and landlords should contact the relevant
department to discuss the scheme in detail. Many landlords often feel
that the tenancy agreements are one sided and more to protect the University
scheme operators. Provided landlords are aware of the tenancy obligations
the schemes offers them a real alternative with rental certainty during
the year.
The disadvantages include in some cases the uncertainty of the University
finding tenant students and that the property may remain empty for up
to three months during the summer vacations.
Council
Some councils also offer special housing schemes similar to the housing
associations. They will usually enter into a 3 year agreement with the
landlord and with house tenants in any way they think fit on short term
basis. Once again the landlord has no say in the way the property is occupied
but the council is liable for repairs and any damage caused to the property.
Rent is normally paid quarterly in advance and the council will often
contribute an agreed sum to the landlord for furnishing the property at
the outset.
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