Information For Landlords
THE KEY TO SUCCESSFUL LETTINGS & PROPERTY MANAGEMENT
Why do you need a Letting Agent – the answer is peace of mind that encompasses various factors, from dealing with numerous issues and responsibilities when letting a property, ensuring your property is maintained whilst let, to covering all legal and financial aspects. A full time job in its own right. Let MPM take the strain.
At MPM we pride ourselves on being an "Independant Company", locally based and able to make on the spot decisions. Each Landlord is given a dedicated Property Manager who fully understands your property, the tenancy and any related and associated idiosyncrasies with a full back up service 24/7, 365 days a year. Our dedicated human response is supported by state of the art software for Letting and property management as well as accreditation with:
Our time is yours and by using MPM's Management Service we dedicate ourselves to aspects such as:
Organising and monitoring annual regulatory safety checks
Paying routine outgoings
Preparing rent statements
Chasing tenants for rent
Liaising with tenants regarding repairs
Attending the property with contractors
Arranging inventories – check in/out
Negotiating dilpidations at the end of the tenancy
Preparing the re-letting….
SO THAT YOU DONT HAVE TO......
Our landlord pack is designed to ensure that our Landlords are fully informed of current letting legislation and includes various guidelines to what is required from you, together with the complete service we offer.
Please do not hesitate to contact us. We are here to make the letting of your property as hassle free and financially rewarding as possible.
A REFRESHING APPROACH TO LETTINGS AND RENTING YOUR PROPERTY
With an ever demanding market place the demands on landlords have become fairly intense enabling agents to support and assist landlords in every way. Successful rental relies on three factors – long term capital growth, near constant demand from tenants and maximum rental yields in line with current market trends, which our ethos of service at MPM Property Management mirrors.
Please find below some important information with respect to the letting of your property.
It maybe that your property is mortgaged to a building society, bank or other lender. If so, the mortgage deed will require written consent of the lender to be obtained before you let the property. If your property is mortgaged, it is a legal requirement to obtain written consent from your lender.
If written consent is not granted or seen by the agent, legal action can be taken against the agent and a £5000.00 fine will be payable. Furthermore, where a mortgage is evident but written consent from the lender is not provided, the tenancy will not exist in the eyes of the law. Occasionally, it will be a condition of consent to the proposed letting that your mortgage interest rate is increased and it is therefore advisable for you to approach your mortgage at an early stage to see what the financial consequences are likely to be. Some lenders may charge an administration fee.
If your property is leasehold, you may require the consent of your landlord for the proposed letting. Whether your property is a freehold or leasehold there may be special rights or restrictions affecting it. We will need to have details of these to include in the tenancy agreement, together with a copy of the lease for our file.
We would always advise landlords to make sure that the property and contents included with the letting are adequately insured. It is extremely important that you advise your insurance company that you are proposing to let your property and that you confirm to them once this has been done. Failure to do so could result in you losing insurance cover. Some insurers impose letting conditions, and we would require details as this may affect the choice of the tenant. A current building insurance certificate will need to be provided to McKinley's to hold on file.
Income received from lettings your property will be subject to income tax and you will need to include details of the income and allowable expenses, including dilapidations, when completing your tax return. The inland revenue may ask us directly of any income we pay you and we are obliged to provide these details.
If you are resident abroad, we, as your agents, will be required by the inland revenue to pay any tax liability that arises on rents collected by us on your behalf. We will therefore deduct income tax at the basic rate from rent payments received and these monies will be held to your credit in a specially nominated account and paid directly to the inland revenue via us every quarter.
We would strongly recommend that all overseas landlords contact the inland revenue to gain “overseas landlord approval number” whereby we will be notified by them not to deduct any income tax from your rental income. Instead, you will be charged income tax at a significantly lower rate directly via the inland revenue, which you will need to pay at the end of each financial year.
Landlords protection insurance
No matter how well prospective tenants are vetted, there is always a risk that a tenant will prove to be unsatisfactory, sometimes due to unforeseen circumstances. Whilst court proceedings can be taken to enforce the terms of the tenancy agreement, this is often expensive and unlikely that you will be able to recover the full cost involved from the tenant. We strongly recommend that you consider taking out legal protection insurance to guard against the risks involved.
Whilst there are many different aspects to renting property, one of the most crucial is finding a suitable tenant quickly and at the optimum price level – this is key to peace of mind. Our priority is to give you peace of mind and a constant supply of high-quality private tenants.
It is in your interests that so much care is taken in selecting a tenant for you and your property. These result in many applicants being rejected without showing them the property. It is a different situation to the sale of the property whereby it only matters that the purchaser has the money. Our tenant selection methods are intense and highly monitored and our multi faceted marketing, complimented with our established and highly regarded locations, ensures good levels of tenant listings, which are always being refreshed and renewed.
When letting, the tenant will be living in your property and this makes it important to be selective.
As soon as a suitable prospective tenant has been found, we will negotiate the terms and commence the vetting procedure. When satisfactory references are obtained, including identification verification, we will interview the prospective tenant to assist us in the making the recommendation to you. If you wish, we can arrange for you to meet your prospective tenant/s before a decision is made.
The landlord has the right to reject any applicant submitted, although if he does after references have been taken up, then he may be liable to reimburse the prospective tenant the referencing fee charged.
Tenant search time:-
A suitable tenant should be found based on the following assumptions:- the property is in good order a realistic rent is asked the property is available in the near future (although a tenancy can be arranged 1-2 months in advance) usually 7-10 days are required, enquires, documentation, procedures and interviewing of prospective tenants. The time taken does depend on the individual circumstance and can in many cases, take considerably less time. Please note for very substantial, unique property it will often take longer to find a “niche” market tenant. We employ a specialist agency to carry out a detailed credit check, right to rent check, including the credit and employment history of the prospective tenant. If there were any question of doubt about the ability to pay the rent, or perhaps job security, we would only advise upon proceeding if a suitable guarantor could be provided.
Get In Touch!
MPM Property Management
With our management service, we make regular visits to the property on your behalf which is included in the monthly management fee that we charge and advise you of any potential problems. We aim to visit no less that three times a year. The main purpose of such visits is to check if there are matters that require your attention. We also check that the tenant is not in breach of contract and that no damage is being caused to the property. We also give the tenant advice if necessary on any defects we may find. However, tenants do have the right of privacy, and we can only enter the property with consent. Similarly, we are not able to comment on the tenants lifestyles or cleaning ability unless the property is being adversely effected.
For landlords only instructing MPM Property Management to act on a “tenant find” bases only, we can still provide this service, although £25.00 will be charged for each visit.
Attic, cellar & excluded areas
We do not inspect the above areas but may ask you to confirm the contents of these areas (if any) as this may affect safety issues. During our routine visits to managed properties, we will not visit these areas unless requested to do so. It is strongly recommended that you do not store items on the property once let.
Garden and outdoor areas
Tenants are required to keep these areas neat and tidy, standard gardening ability and knowledge can vary considerably. Please note that is usually the responsibility of the landlord to cut shrubs, trees and bushes but the tenant must be allowed to lop or prune if necessary to keep the garden in order.
If the garden is particularly important or has special features, we usually suggest that the landlord provide a gardening service. The extent of this can be negotiable, and we will make the necessary arrangements as part of our management service.
The Tenancy Agreement
The Tenancy Agreement
We will discuss the best terms, and conditions then prepare the appropriate legal agreement. In most cases, we recommend an assured shorthold tenancy agreement, usually for a minimum period of six months. If you require the property back at the end of this period, notice must be served at least two months before the expiry date. We will deal with this and also the necessary procedures, should you decide with the tenant that the period might be extended.
Recommended letting period
This can be tailored to your needs and depends on various factors such as:-
- The dates you will require the property for your own use.
- The form of tenancy that can be offered to you.
- Short-term tenancies are not usually regarded as economically productive as long term ones.
Our tenancy agreement stipulates that a tenant may not allow pets in the property, unless this has been agreed prior to commencement of the tenancy. However, a tenant is entitled to ask the landlord for consent while the tenancy is running and we would advise that each case is to be considered on an individual basis.
If consent is to be given by the landlord, we will ask the tenant to pay a higher deposit. Furthermore, the tenancy agreement has a clause stating that professional cleaning and de-fleeing of all carpets will need to provided by the tenant at the end of the tenancy and proof provided by way of receipts/invoices that this has been carried out.
Problems with the tenants
In the event of difficulty, whether the tenant is failing to pay the rent or has broken terms of the tenancy agreement, we will be pleased to discuss with you the steps to enforce the terms of the tenancy agreement. However, we would stress that the vast majority of lettings we manage are uneventful, and trouble free.
We will assist with any eviction proceedings, but our management fee does not cover this.
We will charge fees based on time and will always be happy to give details of the charging rate and an estimate where appropriate.