QUESTIONS AND ANSWERS
INITIAL ENQUIRIES
On your invitation, we will visit your property at a mutually
convenient date and time to provide you with a current rental
valuation together with an indication of its letting potential.
It is always useful for us to know what the minimum rental amount
is to permit us the flexibility to do business with the best potential
tenant rather than just the wealthiest. Advice as to level and
quality of furnishings, decor & fittings would be available,
all free of charge and without obligation. If you decide to appoint
Intercity Accommodation we will market the property as soon as
our management agreement has been signed and keys are received.
We will then undertake viewings (always accompanied) with prospective
tenants, seek employers’ references, proof of earnings and undertake
a legal tenancy agreement on your behalf. A detailed inventory
of the condition of the property and its contents will be drawn
prior to the tenant’s occupation of the premises.
HOW MUCH WILL IT COST?
Each time that a new tenant is located a charge, the equivalent
of one week’s rent will be made. If an existing tenant simply
wishes to accept a further tenancy a small charge of £35 is made
to reflect administration time and costs. Our commission rate
starts at 11% & VAT. No advance payment is required from you,
as these charges will be deducted from the rental income. The
Agency will undertake any advertising of your property that we
feel may be necessary and there is no charge for this. However
in the unlikely event that you wish specific additional marketing,
we can discuss with you and advise you on the likely effectiveness
and costs at that time.
WHAT IF I CHANGE MY MIND?
You are free to do so with written notice to our office at any
time whilst the property has not been let and no tenancy has been
agreed or is being considered on your behalf. If an application
for a tenancy is already being considered then we will be in the
process of taking up references for that prospective tenant. If
you wish to change your mind at this stage then a charge the equivalent
of one week’s rent will be made to cover administrative costs
incurred to date. Once a tenancy agreement has been signed you
cannot change your mind nor can you change your mind during a
tenancy. We will always tell you when the tenancy agreement for
your property is due to end. Providing you give us written notice
at least two months before this end date then we can take steps
to cease the letting if you wish. Otherwise the letting will continue
until you give us written notice to stop.
HOW LONG MUST THE PROPERTY BE LET FOR?
The minimum period of letting is six months, which means that
you cannot gain possession of your property before six months
have expired. Longer tenancies are possible and we can discuss
the advantages and disadvantages of this if you so wish. Remember
that you can usually only obtain possession of your property at
the end of a tenancy agreement. Possession before the end of a
tenancy is possible only if the tenant has breached one or more
of the tenancy terms. It is always helpful if an indication can
be provided of the anticipated maximum duration of let. Many prospective
tenants may be deterred if the maximum let is only six months.
The Housing Act made it lawful to enter into a tenancy of less
than 6 months. If you require such a short letting then we can
discuss this with you.
CAN I STIPULATE THE TYPE OF TENANT I WANT?
Yes. You can also stipulate other conditions such as non-smokers,
no pets, no children, and no sharers. However it is important
to remember that the more conditions you impose the more limited
your choice of prospective tenants will be.
HOW CAN I BE SATISFIED AS TO THE CHOICE OF TENANT?
The practice of some companies is to charge commission in advance
for the entire duration of the tenancy regardless of whether rent
is actually received or not. Our charging structure means that
unless a tenant pays the rent due, we cannot collect our commission.
Clearly it would not be in our interests to accept a tenant where
we have any doubts whatsoever as to their future conduct. At times
of low demand there may be pressures to secure a letting for a
property that may have been vacant for some time. However we would
rather offer you the option of employing another agent than risk
securing an unsuitable tenant.
WHAT GUARANTEE DO I HAVE OF GETTING MY PROPERTY BACK
If the tenancy has expired and no less than 2 months notice has
been served then possession is guaranteed. If possession is required
during the term of a tenancy then you must be able to prove (to
a court if necessary) that your tenant has actually done something
which is in breach of the tenancy. There are 17 grounds that may
be relied upon of which 9 are discretionary and the remainder
are mandatory. An example of a discretionary ground is one where
the tenant has not taken good care of the premises. The courts
decision as to whether possession is awarded or not depends entirely
upon the circumstances of the case. An example of a mandatory
ground is one where the tenant has accrued two months rent arrears.
Such decisions would be made by the County Court.
DO I HAVE TO TELL MY BUILDING SOCIETY?
If you have borrowings secured against the property then yes.
The lender may impose certain conditions and they may also wish
the Agency to serve your tenant certain notices. You must also
inform your insurance company that your property is going to be
tenanted.
WHAT ABOUT THE SERVICE BILLS?
Unless you agree otherwise, the tenant is responsible for the
payment of gas, electricity, water rates, council tax (or equivalent)
telephone account and personal belongings insurance. The Agency
would always take meter readings for the gas and electricity supply
immediately before and after each letting with details being advised
to the appropriate authorities direct.
WHEN WILL I RECEIVE MY RENT?
The tenant’s obligation is to pay rent within 7 days of the 1st
day of each month. You can expect to receive your net rent as
soon as your tenant’s payment has cleared the banking system.
This will usually be before the middle of the month. It will be
paid directly into your bank account and a statement will be posted
to you. If your tenant is due to vacate the property, then rent
will paid by the middle of the month following vacation in anticipation
of repair expenses that may be incurred during the last month.
Rent may also be carried forward if a repair invoice is anticipated
during the course of the letting. Interest will not be paid on
money which is retained providing that the retention is not unreasonable.
WHAT ABOUT REPAIRS?
You would be expected to repair/replace any item supplied by you
within the property if it deteriorates or breaks down. This duty
does not extend to the tenants belongings. Additionally, Landlords
are not obligated to repair/replace items which have failed due
to tenant negligence or in cases where a superior alternative
exists; although many Landlords exercise discretion in such circumstances.
You would not normally be expected to improve the property beyond
its original condition although you may wish to do so to ensure
a long and successful letting. We will ask you whether you want
to arrange for repairs yourself or whether you wish our office
to arrange them on your behalf or indeed a combination of both.
The Agency can use your appointed, qualified tradesman providing
that s/he is able to respond with reasonable speed to instructions.
This is vital to retain the confidence of tenants. The Agency
will always appoint our own contractors to deal with emergency
repairs in your absence and out of office hours. A charge based
on 10% & VAT of the invoice cost will be levied in respect
of administrating repairs on your behalf. The Agency also offers
an insurance policy at a cost of £7.35 per month, which provides
free labour and parts for most urgent repairs (excluding central
heating boilers). The policy offers a response time of 4 hours
which in our experience is generally maintained. A specimen policy
is available upon request.
WHAT ABOUT ANY DAMAGES OR RENT ARREARS?
A deposit will always be claimed in advance from your tenant which
will generally be marginally more than one months rent. Careful
selection of tenants mean that damages are rare but in this unlikely
event the tenant will be responsible to you for damages which
exceed the value of the deposit held. Larger deposits (up to a
maximum of 2 months rent) can be requested although this is a
practice more common in London and may deter a speedy letting.
A detailed inventory of contents will be drawn prior to each of
every new letting, which you may inspect upon request at any time
prior to or during the occupation, by your tenants of your property.
This will then be used on your tenant’s departure to check the
property. Deposits are returned once your tenant has given vacant
possession of the property. You are welcome by prior appointment
to inspect the property at the same time of the check-out by prior
appointment. Any claims for unreasonable wear and tear (that have
not already been identified by the Agency) must be made within
7 days of the tenant’s vacation. If your tenant does not pay his
rent or the cost of any damages then we will advise you how you
can apply for possession of the property. Although the Agency
prides itself on never having had rent arrears on any client’s
account, we are nevertheless able to offer insurance policies
in respect of this risk for most lettings.
WHAT ABOUT LEGAL COSTS?
Although this is very unlikely, there are insurance policies that
are available. We can advise you on these.
HOW LONG WILL IT TAKE TO LET?
Letting a property is similar to selling a house in that the price,
quality and particularly location are all factors. The times of
peak demand are generally July/August/September and properties
that are competitively priced and in the most popular areas will
be let earlier than those that are not. Forecasting the letting
market has its uncertainties but it is clear to us that there
is a distinct reluctance by many very mortgage-worthy people to
undertake the lengthy commitments of home loans. Hence there has
been significant expansion of the private rented sector led by
the demand from quite mobile, well paid career individuals. As
a guide we would say that an average property becoming available
at a time of average demand would take approximately 4 weeks to
let.
CAN I TRY TO SELL IT WHILST IT IS TENANTED?
It is extremely difficult to market a property as being for sale
whilst it is tenanted. Selling agents & their clients do not
have the interests of tenants uppermost in their minds and from
experience this often leads to unacceptable disruption to your
tenant. In short your property must be wholly for sale OR wholly
to rent. If you sell your property to your tenant before the tenancy
has expired then the outstanding commission that we would have
expected to receive for the remainder of tenancy will be due.
If you prefer we can charge you 1% of the sale value instead if
this works out to be less.
HOW OFTEN WILL THE PROPERTY BE INSPECTED?
Whilst the property is vacant the property will be visited as
many times as there are prospective tenants wishing to view. There
is no restriction to your access rights at this stage. Once the
property is let, inspections must be undertaken strictly by prior
appointment with the tenant via your Agent - except for emergencies.
The Agency obtains monthly inspection rights for all properties
but where appropriate, inspections may be more or less frequent.
VACANT PROPERTIES
Empty properties are always at risk. We do not manage vacant properties
although the property may be visited during the course of viewings
with prospective tenants. Your insurers will normally wish to
be notified by you of any period exceeding 30 days that the property
may be unoccupied. Additionally you may wish to fit a timer switch
to internal/external lighting. During winter months you may be
advised to drain the water supply system or to operate background
central heating.
WILL I HAVE TO PAY INCOME TAX ON THE RENT?
You must declare to the Inland Revenue all your rental income.
There are many allowable expenses that you can claim before tax
is finally charged including your agent’s charges, mortgage interest,
buildings insurance and repair costs. There is also an allowance
of 10% for wear and tear for furnished properties. In many cases
these expenses can reduce the annual tax bill to a negligible
level.
OTHER LEGAL REQUIREMENTS (see attached guidance notes)
Apart from the obvious requirements of keeping your property in
safe and habitable condition, there are requirements concerning
gas safety and fire safety. Guidelines to these regulations are
enclosed herewith.
There is further legislation (from 6/4/06) governing the standards
of accommodation for Houses in multiple occupation (HMO) some
of which will require a license before the property can be let
to tenants. Information regarding the legislation can be obtained
from the government’s website at www.propertylicence.co.uk and
at Leeds City Council’s website www.leeds.gov.uk Please note that
it is an offence to knowingly rent out a ‘licensable’ property
but which does not have license. It also an offence to knowingly
rent out a licensable property which, without reasonable excuse,
is in breach of any of the conditions of the license for the property.
All licensable properties must have a 5 yearly inspection of the
fixed electrical installation and fixed appliances to ensure that
it is safe. Intercity Accommodation and Leeds City Council both
recommend that all rental properties should meet this standard.
PROTECTION OF TENANCY DEPOSITS
From April 2008, it became law that all tenants’ deposit must
be legally protected by employing the services of one of three
government approved bodies. Intercity Accommodation has been approved
to hold deposits on behalf of tenants. See page 21 for further
details.
THANK YOU FOR CONSIDERING INTERCITY ACCOMMODATION.
Intercity Accommodation has been established since 1980. We do
not sell properties nor do well sell any financial products. Consequently
our experience of the letting market and knowledge of the Housing
Acts of 1988, 1996 and 2004 is not diverted in any way. Our levels
of service are maintained by our policy of strictly limiting the
numbers of properties managed at any one time. Since 1980 our
occupancy rates have averaged at over 90% per annum. The Housing
Advice Centre, Leeds City Council, the Tourist Board and the Trading
Standards Department are currently referring prospective tenants
to our office. A judicious allocation of our annual advertising
budget attracts a sustained level of enquiries throughout the
year. Intercity Accommodation is a member The National Approved
Letting Scheme (NALS) which is approved by the Office of the Deputy
Prime Minister (ODPM) and also a member of the Ombudsman scheme.
Intercity also has professional indemnity insurance.
ANY FURTHER QUESTIONS
Please telephone or call into our office. Many people are renting
properties for the first time and there are often questions that
are particular to your circumstances that we may not have answered.
Perhaps you simply want a certain point explaining a bit more.
Please do not feel that you are asking a silly question or that
you are wasting our time. You may in fact be helping us to avoid
any similar confusion in the future.
WHAT SHOULD I DO NEXT?
If you wish to employ Intercity Accommodation, then please complete
the enclosed property information form and return it to our office.
We will then commence our marketing and management immediately.
TERMS OF BUSINESS
In consideration of you instructing us to act as your sole managing
agents we will: -
Visit your property and advise you on the rental income that we
feel that you can realistically achieve for the property
Advise you on current demand for your type of property and rented
accommodation generally
Advise you on the standards of decor, heating and furniture required
for letting of your property
Advise you on consents you may need to obtain prior to the letting
such as from your Building Society and Licenses from Leeds City
Council and discuss with you any conditions that they might impose
on your letting – however we are unable to ensure or monitor your
compliance
Advise you on your income tax liabilities
Provide you with guide lines to the gas safety and fire safety
requirements
Advise you on your repairing and maintenance responsibilities
Erect a 'to-let' board at your property and arrange appointments
with any prospective tenants
Provide an accompanied viewing service for all prospective tenants
Consider applications from prospective tenants and take up references
as considered appropriate
Discuss with you, if you so wish, the circumstances and references
of any prospective tenants prior to the granting of a tenancy
Prepare and obtain the tenants execution of a Shorthold Assured
Tenancy agreement under the terms of the Housing Act 1988 (as
amended by Housing Act 1996) as drafted by the Solicitors Law
Society and to prepare and serve any appropriate additional notices
that may be necessary or that you might require
Prepare an inventory of the contents and schedule of conditions
and on your request we will make this available for you to check
prior to the tenant entering into possession of the property
Collect a deposit from your tenant usually marginally more than
one months rent unless otherwise agreed with you
We will take meter readings for the supply of gas and electricity
prior to your tenant’s occupation of the property
We will provide any information that may be requested by companies
on behalf of your tenants in respect of utilities to your property
such as council tax, water rates and telephone
Demand and collect the rent each month from your tenant including
reminder telephone calls, the issuing of reminder letters and
visits to the property as may be appropriate
We will prepare a monthly statement of your rent collected detailing
any expenses together with an explanation for that expense and
receipts
We will pay your net rent to you as soon as your tenants rent
has cleared our banking system
We will advise you if the rent has not been paid or if it is paid
late and offer you any explanation that we or your tenant may
have
We will advise you on how and when you can obtain possession and
offer you guidance if you need to instruct a solicitor
We will arrange to inspect your property on a regular basis and
provide you with a written report of our observations if any.
We will also provide you with a written report of any faults reported
by your tenant or any or observations we may have on the property
condition or your tenants conduct
We will (if instructed by you) also arrange to provide you with
quotations for any repairs or maintenance that may become necessary
and provide access by arrangement with your tenant to you and
or the contractor
We will deal with all repairs of an emergency nature (including
accidental locking out) at your property and provide your tenants
with a 24-hour emergency help line telephone number
We will deal with items of maintenance providing that you have
instructed us to do so in writing or by email and sufficient funds
are available or have been supplied in advance
When your tenants vacate your property, we will use the prepared
inventory to inspect the property and use our judgement to assess
whether the property is in reasonable condition. You are welcome
by prior notice to this office to be present during our inspection.
We will then return the deposit within 7 working days to your
tenant less any deductions that may have been agreed with you
for unreasonable wear and tear, damages or rent arrears
We will take final meter readings for the supply of gas and electricity
and notify the appropriate authorities of those readings
We will, at all times, offer you advice as to your rights, duties
and responsibilities as a Landlord and offer you guidance as to
what performance you can expect from your tenant
In return you must agree to:
Obtain a license if your property requires one and comply with
any conditions of that license
Ensure that your property complies with any other H.M.O. (House
in Multiple Occupation) condition or selective licensing condition.
Notify your Building Society or lender and receive their permission
for you to let your property
Notify your insurance company of your intention to let your property
Remove from the property, prior to our preparation of the inventory,
any items that you do not wish to include with the letting
Provide details and paperwork relating to any guarantees and instructions
Provide details of any repair contractors that you might prefer
to use although if they are unavailable or cannot respond within
a reasonable period of time then our own contractors will be employed
Provide details of your contact telephone/fax number/s and correspondence
address during our period as managing agents
Notify us if you do not intend to be resident in the U.K. during
the letting
Notify our office in writing and in advance of Intercity Accommodation
marketing your property of any restrictions to the letting such
as no smokers, no pets no unemployed etc.
Cancellation terms:
The Agency may cancel the management agreement with written notice
at any time if your instructions are such that they breach the
terms of the tenancy agreement, management agreement or laws of
the land.
The Agency may cancel the management agreement with written notice
at any time if we consider your instructions unacceptable
Either you or we may end the agreement with at least one month’s
written notice. However if you cancel our management whilst a
tenancy agreement is still current then we reserve the right to
charge to you commissions on the uncollected rent for the remainder
of that tenancy agreement or until the tenants vacate the premises,
whichever is the later.
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Residential Landlords Association
