1. When you are looking for a property to buy to rent out, it is good practice to use the following formula to work out the rent yield, as to whether it is worth purchasing the property: Monthly rental return e.g. £775.00 (rent) x 12 months = £9,300.00. £9,300.00 /£180,000 (investment amount= purchase price + agents & solicitors fee + any maintenance work to the house) = 0.0516 * 100 = 5.16% yield It is not advisable to go below 5% rent yield per annum, as it will not be a good investment
2. Carefully consider what type of tenant(s) you would living in your property, as to the location, size, parking, distance from schools, train/bus stations, town centre, motorway network etc.
3. I write the Tenancy Agreements for a minimum of 6 months. After 4 months we can ask the tenants if they are happy to continue to rent and if you are happy to continue to rent to them. If everyone is happy I can write another 6 or 12 month tenancy (which costs £30.00) or it can become a periodic tenancy so that it runs monthly.
4. The deposit will be held in the Deposit Protection Scheme which is run free of charge by the Government. If you are going to manage the letting yourself I can transfer the deposit from my DPS ID into yours. If you do not put the deposit into a Deposit Scheme you will be unable to Serve a Section 21 Notice and you maybe fined up to 3 x the deposit amount.
5. Monthly rent payments are set up using a Standing Order when the Tenants sign all the paperwork before they start the tenancy.
6. Properties available for rent are advertised on Rightmove, Liz Taylor Lettings website and in Nuneaton News (local newspaper).
7. I carry out viewings from 8am through to 7.30pm on weekdays and on Saturdays, to ensure all those prospective tenants who work 9am to 5pm are able to view the property.
8. I discuss all applications with you before we choose an applicant(s) to be referenced.
9. I carry out Credit Checks, Employment Confirmation Requests and Landlord/Letting Agent References on all chosen applicants. If the applicants are retired I request copies of Pension paperwork and Bank Statements. I let you know the outcome of all the requests before a final decision is made.
10. I carry out thorough Inventories which include detailed narrative, photographs, Energy Performance Certificate, Landlord Gas Safety Inspection (if applicable), Electric Inspection (if you have had one done), Buildings Insurance Policy, photocopy of keys and the How to Rent Guide.
11. The first Landlord Fees are deducted from the first month's rent that I receive from the tenants. I also deduct costs such as Gas Safety Inspections etc from the rent. If there is not enough to cover these maintenance costs, I will ask you to pay the contractor directly.
12. I keep Landlords updated throughout the initial Tenant Find process and then if I am Fully Managing your property I will update you when issues occur with maintenance, tenancy issues e.g marital breakdowns, late rent payments etc.
13. I will forward rent payments to you within 4 days of receiving them (in case of weekends and Bank Holidays) .
14. If you are concerned about unpaid rent, I have an Insurance Company who can write you a legal policy which includes Rent Guarantee for under £100.00 per annum.
15. I carry out inspections on properties after the first 6 weeks, 3 months later, 6 months later and if there are no issues, I go every 6 months after this, so that the tenants can enjoy 'Quiet Enjoyment'.
16. If you want to give tenants notice to leave your property and you do not have to give them a reason, you can give them 2 months notice on the periodic date of the tenancy, anytime after the 4th month of the most recent tenancy, but you must have all of your paperwork in order i.e. Deposit Protection and Prescribed Information, EPC, Landlord Gas Safety Inspection, How to Rent Guide.
17. If a tenant wants to give notice they must give 1 month's notice on the periodic date of the tenancy anytime after the 5th month of the most recent tenancy.
18. If a tenant needs to end the tenancy early due to unforeseen circumstances and you are happy for them to leave early, they must pay their rent until a tenant is found or until the end of the 6 month tenancy (whichever is first). If a new tenant can move in before the end of the existing tenant's 6 month tenancy agreement, the existing tenant must pay us the Landlord's fee, that you would normally have to pay to us to find you a new tenant.