The Eltze Estates residential lettings department has been established over a number
of years and we utilise this depth of experience to offer our Landlords a high quality
service when looking after your property. We have prepared a guide detailing matters
that you should consider prior to letting your property and we are happy make
recommendations and answer any questions you may have.
Our rental appraisal
Our rental appraisal is based on the size, condition and location of your property. We then take
into account other let properties prior to providing you with a realistic rental appraisal.
As a rule, the rental quoted is inclusive of any ground rents, service charges and other charges
which fall under the responsibility of the Landlord, if the property involves a more complex
situation, e.g. an Annexe or out-building, Landlords may wish to have bills included. Otherwise
rent does not generally include council tax, water rates, utility bills, buildings or contents
insurance.
Payment of rent to the landlord
All rent is paid into the Eltze Estates Client Account by the tenant on an ongoing or periodic basis.
We pay the landlord by electronic transfer once we have cleared funds. Eltze Estates make it a
priority to pay Landlords as soon as possible after the ‘Rent Due Date’ (the day the tenant moves
in) on an ongoing basis.
Fees & VAT
Subject to our comments mentioned in our Services & Fees pages, all fees under the
terms of the Agreement will be deducted from each rental payment received throughout the
tenancy. Fees remain payable while a tenant introduced by “the Agent” remains in occupation.
Our fees and any other charges we make will be subject to VAT at the rate being in force at the
time.
Tenants
Finding the right tenant for your property is our number 1 priority. Once you have given us your
instructions to market your property we match your property to our database of prospective
tenants. We also place your property on Rightmove, Zoopla and Prime location. All tenants must
fully complete our application forms and pay a fee so that we can reference them. Our references
are dealt with by a specialist referencing agency and only after satisfactory references have been
received, will we then consider recommending a tenant to you for your final decision prior to
proceeding with a tenancy. You will be kept informed throughout this process. Please note,
should you decide to withdraw your property, once references have been pursued and a potential
tenant accepted, you are required to refund the prospective tenants application fees.
References may only take a short period to complete, three to seven days, however we suggest
allowing two weeks prior to a tenant moving in. This allows for all procedures to be in place prior
to arranging a move date. It is generally acceptable to allow a full month from start to finish; of
course this is dependent on circumstances.
Tenancy agreement
One of the main reasons for having a form of Tenancy agreement is to set out the Landlord’s and
Tenant’s obligations to each other. Having a clear and comprehensive Tenancy agreement can help
to prevent future disputes. Most tenancies, except for Company Lets, are given under a fixed term
Assured Shorthold Tenancy (minimum being six months); at the end of which, subject to notice, or
agreed extension, the Tenant must vacate the property. We prepare the Tenancy Agreement and
any “Special Clauses” may be added to suit individual requirements. We will only sign as Agent on
your behalf where you have instructed us to do so.
Deposits
Landlords are no longer allowed to retain tenant’s deposits; they must be protected using an
authorised protection scheme. We request a deposit for all tenancies (1.5 x the rent), which we
register with one of the government custodial tenancy deposit schemes. Deposits are a security
for breach of provisions in the Tenancy Agreement and we ask for one and a half calendar
month’s rent. The Deposit is refundable at the end of a tenancy, only after the tenant has vacated
the property and providing the property and accounts are in an acceptable condition.
On termination of the tenancy, you are required to either to authorise us to settle dilapidations
(if any), with the Tenant on your behalf in accordance with the Inventory Clerk’s check out
report or settle and dilapidation claim direct with the tenant.
It should be noted, the Landlord, the tenant or the Agent, have the right to refer any dispute
over deposit to the Independent Resolution Service. Their Arbitrator’s adjudication will be final.
Deposits may not be used to set off against rent or any other costs or dilapidations until mutually
agreed after the end of the tenancy.
Permission
If there is a mortgage on the property you are thinking of letting you need to obtain permission
from your mortgage company prior to letting. We also recommend that you contact your solicitor
in order to ascertain whether or not written consent is required.
Legal
Under the Landlord and Tenant Act 1985 and the Housing (Scotland) Act 2006. The Landlord must
keep in repair the structure, exterior of the property and the installations for the supply of services
(gas, electric, water, sanitation, space and water heating). The Landlords obligations extend to
the roof, drains and gutters. The property has to be “fit for human habitation” at the start of the
Tenancy and a Gas Safety certificate must be issued prior to let.
Insurance
We recommend that the Landlord obtains building and contents insurance on the property to be
let in order to protect your investment and any counter claim from a tenant if a fault at the
property damages the tenants chattels. A Landlord should inform your insurance company that
the property is to be let as some policies exclude cover for lettings to certain types of tenants.
Tenants are responsible for insuring their own possessions; however, Landlords/Agents cannot
enforce this. It is also possible to take out insurance to cover legal costs of pursuing claims
against the Tenant arising from breech of the terms of the Tenancy, including the costs of
obtaining repossession. Please let us know if you require further information on this type of
insurance.
Energy performance certificate
It is a legal requirement to obtain an EPC prior to letting and we can recommend a local company
to complete the EPC. EPC’s have been compulsory since October 2008 and are valid for 10 years.
Presenting your property
We recommend that you prepare your property and the grounds in the best condition possible
prior to let. We have found that better presentation leads to a faster let and reduced void rent
periods. We advise landlords to keep the décor neutral and to address any maintenance issues
well in advance. It is a fact that the better the property is presented, the better the tenants, and
the more likely they are to look after it satisfactorily. Tenants generally look for a high standard in
kitchen and bathroom fittings. It is useful for carpets, curtains and kitchen appliances to be
supplied.
Gardens
It is advisable to include a gardening service for very large mature and landscaped gardens.
Generally, the Tenancy Agreement provides for the tenant to maintain the garden, although this
does not usually include pruning trees or large hedges/shrubs etc. The garden should therefore be
handed over in good seasonal order, and we recommend that appropriate tools and equipment be
provided to the tenant for basic gardening.
Gas safety certificate
Under the Gas Safety Regulations, Landlords must ensure that gas installations are inspected
annually by a Gas Safe Registered Engineer and provide a certificate to this effect. A copy of the
certificate will be provided to the tenant and we will keep a copy on our file.
Under the Gas Safety (Installation and Use) Regulations 1998, all gas appliances must be checked
by professional tradesmen. The Landlords are expected to maintain any items supplied with the
property and in some cases are required to do so by law. Tests must be carried out annually, and a
copy of the safety certificate provided to the Tenant & Agent.
Electrical equipment
The regulations 1994 require all electrical appliances to be safe. We recommend that a fixed wiring
test be carried out every five years. In order to ensure the safety of all appliances, including such
items as cookers, kettles, toasters, washing machines, immersion heaters and electric heaters etc. It
is recommended that safety checks PAT (Portable Appliance Testing) be done prior to
commencement of tenancy and thereafter annually. All appliances must have instruction
books/manuals left at the property. Failure to comply with the Regulations could result in
prosecution.
Smoke alarms
All rental properties built after June 1992 must have mains operated inter-connected smoke
alarms fitted on every level of the property. Landlords now (since Oct 2015) have to ensure that
smoke alarms are installed and working and they are fitted in accordance with the manufacturer’s
instructions. With older properties landlords are advised to provide at least battery operated
smoke alarms on each level of the property. We will advise the tenant to check these periodically!!
Carbon monoxide detectors
These are recommended but it is not a legal requirement to do so at the time of preparing this
advice.
Furniture
Under the Furniture and Furnishings (Safety Amendment) Regulations 1993, the Landlord has an
obligation to ensure that all furniture in properties being rented, whether new or additional, must
comply with the furniture regulations, by displaying a label stating that they are fire resistant.
Further information about this can be obtained from your local Trading Standards Office.
Legionella risk assessment Legionnaires disease is a potentially fatal form of pneumonia
caused by the inhalation of small droplets of contaminated water containing Legionella. All man-
made hot and cold water systems are likely to provide an environment where Legionella can grow.
It is mainly free-standing water tanks that come under inspection/risk assessment for landlords.
The landlord is responsible for health and safety of the property and it is a legal requirement to
take the right precautions to reduce any risks of Legionella.
Repairs
The obligation of the landlord under the Landlord & Tenants Act 1985, section 11 is to resolve any
maintenance issues quickly. If the tenant notifies us that a problem has occurred we will contact
the landlord immediately and in many cases the problem will be resolved quickly.
If a serious fault occurs (burst pipes, flood, etc.) and we are unable to reach you, we will
authorise a repair at our discretion. Authorisation for this is contained within our agency
agreement and a price limit will be agreed. There is a ‘statutory obligation’ for a landlord to make
emergency repairs within a specified time frame and therefore, we occasionally need to make a
quick decision on the landlords behalf to complete the repairs quickly. Eltze Estates are not able
to pay any Contractors, unless we have funds available to meet any charges for repairs or are
instructed by the landlord to pay contractors from rent monies, if sufficient funds are available
from the rent.
Tenants have the right to contact Environmental Health if repairs are not being attended to
promptly and any ensuing enforcement order could include extra repairs. Work not done can be
undertaken by them and they may add an additional charge on top of the repair bill, which could
be hefty.
Subject to our engagement on a “Full Management” basis, and our holding sufficient funds on
your behalf, we will pay on receipt of invoice, current outgoings such as insurance premiums,
ground rents, service charges and any other arranged charges if we have your instructions to do so.
We cannot make any expenditure payment that exceeds the amount held in balance. Any interest
on Client or Tenant monies held, or commission payable by any Insurers or Contractors will accrue
to “the Agent”.
Tenant repairing obligation
Although many repairing obligations are by law, down to the Landlord, the Tenant also has a duty
to use the premises in a “good tenant-like manner”. This means that they will be responsible for any
repair costs that are due to negligence, especially, where prompt notice is not given to the Agent
and further damage/deterioration occurs, even if the repair would otherwise fall under the
responsibility of the Landlord. Generally, the Tenant is responsible for the condition of the interior of
the property and the landlord the exterior.
Inventory
We strongly recommend that a detailed Inventory of the property’s condition and contents is
prepared by a professional inventory clerk. The landlord’s will find it very difficult to make any
recovery from the deposit if this is not done even if the property is to be let unfurnished. The
inventory should record the condition of the walls, carpets, curtains, and any fixtures etc. which
helps avoid any dispute at the end of the tenancy. Inventory Clerks are not employed by us. Whilst
every care will be taken in instructing the Inventory Clerk, we cannot accept any responsibility for
any omission or error on their part. The charge for Inventory preparation and Inventory check-in is
borne by the Landlord and the check-out fee is generally paid by the tenant.
Professional clean prior to letting
We advise that Landlords have the property thoroughly cleaned by a professional firm, prior to let.
This sets the ‘bench mark’ against which the property can be re-assessed when the tenant
vacates.
Data protection
The Data Protection Act gives individuals the right to know what information is held about them.
Information supplied by you will be held on our manual and computer records in accordance
with the Agent’s notification under the Data Protection Act 1994 and as amended by The Data
Protection Act 1998. The Client agrees that the Agent may from time to time disclose such
information about the Client to third parties for the better performance of the Agent in carrying
out their service to and on the Client’s behalf.
Instructions to solicitors
You will be informed of any rent arrears or breaches of covenant brought to our attention. If it is
necessary for a solicitor to take action, you will be responsible for instructing your own lawyer and
for all fees involved.
Termination of tenancy
We recommend an initial term of 12 months with a six month break clause. The Tenancy will
continue unless a notice to terminate is served after the initial term. When a Tenancy continues
after a fixed period, it is generally referred to as a ”Statutory Periodic Tenancy”, the period being
monthly. The AST agreement provides that the tenant must give at least one month’s notice to
vacate the premises. If you require possession of the property you still need to serve two months
notice in the form of an S21 Notice and there are two types of this notice, S21(1)(b) for fixed
tenancies and an S21(4)(a) for Periodic Tenancies. The notice itself does not force tenants to
leave, it is simply the first step to court action where required.
There is also a general minimum period of two months on ether part to serve notice, in a twelve
month term with a mutually beneficial “break clause”, and this will be stated in the AST
Agreement. Please note, serving notice requiring possession does not always guarantee that the
tenant will vacate on the agreed date.
If necessary we the Agent will take steps to serve lawful Notice upon a Tenant, it is very
important that a Landlord’s Notice is in the correct form, as otherwise the Landlord will not be
able to use it in court proceedings for possession. As your appointed Agent, we have power of
attorney over the tenancy, to sign Notices on your behalf. Sometimes a tenant with a fixed-term
may want to vacate earlier. Strictly speaking they are liable for the whole of the fixed term. Some
Landlord’s are prepared to release early, if a replacement Tenant has been found.
Section 21 notices
We serve a Section 21 Notice to obtain possession of an Assured Shorthold Tenancy, upon receipt
of the Landlord’s written instructions. The Notice must be served at least two months prior to the
expiry of the fixed term or in operation of a ‘Break Clause’ at month four for the tenant to vacate at
month six. If the tenancy is in a ‘Periodic’, at least two periods notice must be given. It is vital that
the correct Notice is served, in the correct format.
Maintenance agreements and contractors
It is agreed that where independent specialists and contractors are required, for the purpose of
any repairs, refurbishment or maintenance issues they are employed by the Landlord or agent
acting on the client’s behalf.
Major appliances including plumbing and heating, should be presented in good order and where
possible be covered by maintenance agreements. We should be advised of all items covered by
guarantee, and we should hold copies of these guaranties on file. Also where possible instruction
manuals should be provided, Landlords are expected to maintain any items supplied with the
property and in some cases are required to do so by law (gas appliances).
Taxation of a non resident landlord The situation is complex and we would recommend that
you consult your Accountant in this respect. If you are resident in the UK, you should declare your
residential lettings income to the IR annually as it is assessable for income tax.
The Inland Revenue does have wide powers to hold the Agent liable for tax on a Landlord’s letting
income. If the Inland Revenue assesses “the Agent” for income tax payable by the Landlord, as a
result of a letting arranged by “the Agent”, then the right is reserved to deduct such amounts as are
necessary, to meet the liability to the Revenue from the rent received. If you are resident abroad
during the “let” period, you must inform HM Revenue and Customs. We are obliged to deduct,
retain and pay tax quarterly, until the Inland Revenue confirms liability for the year in question and
it has been cleared, or an Approval Reference has been granted.
Void periods and visits Our usual Full Management service does not include supervision of the
property when it is not let. During this time, non emergency defects noted whilst accompanying
prospective tenants, will be advised to the Landlord. Those of an emergency nature will be
attended to without delay. However, should a Landlord wish “the Agent” to regularly visit the
property, a fee of £35.00 + VAT per visit will apply.
Under our F/M Service, when a property is let, visits will be performed approximately three/four
times a year. These visits will involve checking for visible defects and any maintenance issues or
any problems brought to our attention, and we will be advising on any action required. It should
be noted that we will be observing how the property is being kept and we will submit periodic
reports where necessary. It should be appreciated that a visit, although thorough, cannot be
considered complete or to be a structural survey.
Properties in multiple occupation
If you are letting to three or more unrelated people (i.e. not of the same family) who share living
accommodation, then, it is likely that the property will be an HMO. There are regulations which
Landlords have to comply with and some HMO’s will need the Landlords to apply for a licence for
the property, from their local authority. These are mostly the larger HMO’s i.e. buildings consisting
of three or more storeys, and occupied by five or more tenants in two or more households.
However, local authorities also have the power to widen the remit of licensing to include smaller
properties. If you run an HMO, you should contact your local authority to see what the situation is in
your area, and whether you will need to be licensed. There are stringent penalties for non-
registration of relevant properties and for breach of conditions, which includes fines of up to
£20,000. Further information can be obtained from www.propertylicence.gov.uk
Keys
We require three sets of keys for the property. Two sets are for the tenant upon occupation and
the other is retained in our office for emergency use.
Access for the landlord
We suggest that Landlords visit the property from time to time to ensure that the property is in
good condition. The Agreement provides for the Landlord to have access; however, he should never
enter the property without the Tenants consent, except in an emergency. The “covenant of quiet
enjoyment” that is implied in all tenancies, provides for the Tenant to occupy the property without
interference.
Sale of a let property
We reserve the right to charge a commission fee where a let property is sold to the current tenant
or another party introduced by Eltze Estates. A fee of 1% plus vat of the final sale price is payable
on completion of the sale by your solicitor.
Income tax
The tax situation may be complex and we would recommend that you consult your Accountant in
this respect. Landlords who reside overseas and own rented property in the UK are able to apply
to the Inland Revenue for an exemption certificate/number and we recommend that this is done
as soon as possible. If you are resident abroad during the “let” period, we are obliged to deduct,
retain and pay tax quarterly, and complete an annual return to the Inland revenue confirming this
is the case until such time that the Inland Revenue confirms liability for the year in question and
it has been cleared, or an Approval Reference has been granted and given to the Agent.