Why do letting agent valuations of my London property vary so much?
The easiest way for an agent to win an instruction is to over-value your property. Money is an easy way to trick Landlords into instructing a letting agent but remember- just because an agent tells you a rental price doesn’t mean they will get it for you. Research the market yourself before the agents attend or, in hindsight, research their valuations and see what is available- visit the major property portals such as findaproperty.com or rightmove.co.uk and focus on properties marked ‘Let’ or ‘Under Offer’.
Be honest with yourself- whilst an extra £50 per week in rent might sound nice, is it realistic?
Equally however, don’t be fooled into down-valuing your property for a quick and easy let. If you are in no particular rush you can afford to test the market at a slightly higher price and move on from there. But remember, in lettings, the adage ‘time is money’ really is true- every week your property sits empty you will be losing £00′s even £000′s.
How do I choose a London letting agent?
There are several factors to consider when comparing letting agents in London – advertising, professionalism, reputation, trade organisations, fees…but our best advice is to choose an agent you actually like. This can be a long term relationship and you want to know you have picked an agent you will be comfortable working with for the foreseeable future.
We would never recommend fees being your main criteria as, ultimately, you get what you pay for. We also strongly recommend only ever using regulated letting agents- for more information on what this means and the benefits hop over to our ‘regulated‘ page.
Online reviews are also now common-place in the property lettings industry. This gives you the opportunity to see a host of independent reviews submitted by Landlords, Tenants and more and can give you an unbiased insight in to the service a specific London letting agent provides. We actively encourage this at base and you can read many reviews by visiting our ‘reviewed‘ page.
It is also worth considering awards. There are several industry awards in the UK specifically for estate and letting agents. We are lucky enough to have been recognised at several awards to date and you can find more information about this on our ‘rewarded‘ page.
I want to change/instruct new London letting agents- what do I do?
Generally speaking (although do check your Terms and Conditions) Letting Agents do not have ‘minimum term’ period or ‘sole agency’ terms. This therefore means that you can dis-instruct an agent or instruct additional before you accept an offer. If you are not happy with the service you are getting from an agent, do something about it. If their service is generally poor, dis-instruct them- they haven’t delivered what they promised and, should they find you a tenant, this will probably only be the start of your problems. Taking longer to rent your London property than expected? Get other agents on board.
We have always been advocates of competition- only a weak agent will fear competition. Competition is the life blood of the property letting industry, especially here in London, and can help ensure that your property is let as soon as possible for as much as possible. Don’t worry if an agent isn’t successful this time round- they may be more motivated to find someone for you next year! We often encourage Landlords to list with more than one agent and can also instruct additional agents in London that we have relationships with if you would just like to deal with one contact at one letting agency.
Whatever you do, however, do make sure that you read any Terms & Conditions of business before instructing a London letting agent and consult these before dis-instructing the agent or instructing another.
Do I need an Annual Landlord Gas Safety Certificate or CP12 when letting my property?
These are a legal requirement for any residential property with a gas supply that is being let out- whether or not you use a London letting agent. A Gas Safety Inspection (or GSI) must be carried out by a Gas Safe registered engineer, and a Landlord’s Gas Safety Certificate (or CP12) issued or be in place before any tenancy can be allowed to commence.
base can easily arrange this on behalf of our Landlords. We have a range of companies we use and the usual cost is just £70 + VAT. Of course, you are welcome to instruct any Gas Safe registered engineer you choose but base must be issued with a copy of the certificate before we will allow any tenancy to commence at the property and there must be a duplicate certificate at the property or supplied to the tenants at the start of the tenancy.
Do I need an Electrical Safety Inspection when letting my London property?
This is currently not a legal requirement- although you must demonstrate as a London Landlord that you always engage due care with regards to the safety of your tenants.
There are two types of electrical safety checks that should be carried out at London properties. Firstly there is a PAT- which stands for Portable Appliance Test. As you expect, this is an electrical inspection of all ‘plug in’ appliances and electrical goods supplied in the property by the Landlord. The second is a Fixed Wire Test- this is an examination and testing of all fixed wiring within the property, the CPD (Fuse Board), etc. This can be done less regularly but is highly recommend when letting out older property.
We therefore recommend that you have a PAT done at your rental property at least every 3 years and a Fixed Wire Test at least once every 10 years.
What do I have to do with the Security Deposit for the Tenancy on my property?
On 6th April 2007 national legislation came in to effect regarding residential Tenancy Deposits and the way they are to be handled. Three approved schemes were launched: the Tenancy Deposit Scheme (TDS), the Deposit Protection Scheme (The DPS) & Tenancy Deposit Solutions Ltd (TDSL). It became mandatory that, if you secure a Tenancy Deposit after this date, then it must be registered with one of these schemes. Heavy penalties have been put in place to ensure that Landlords and Agents adhere to this. To avoid penalties, the Security Deposit must be registered with one of these schemes within 14 days of receipt of funds (NOT within 14 days of the start of the tenancy).
Detailed guidelines have also been introduced regarding deductions. Any Landlord or Agent wishing to make deductions at the end of a tenancy must provide an exact list of what is being deducted, why and proof that this was the tenants’ fault.
It has therefore become a strong recommendation, but not yet a legal requirement, that all Landlords obtain a professional inventory before any tenancy is allowed to commence. Timelines have also been set for the return of deposits.
Where an agreement regarding deductions cannot be reached an ICE, or Independent Case Examiner, must be involved. They will examine the case from both sides, reviewing any evidence available, and will rule on this basis. Their decision is final and must be adhered to by both parties.
For more information on the individual schemes and how they work visit their websites:
Do I have to register my Security Deposit with my property letting agent?
base are proud to be members of the TDS and we were entitled to join as regulated agents. We offer this service completely free of charge to our London Landlords and look after deposits, under TDS, for over 95% of all of our tenancies. We will take care of all applicable paperwork and will register the deposit supplying both Tenants and Landlords with a Certificate of Registration once complete. base must point out that, as a condition of TDS, the deposit must remain with base, in its designated Tenancy Deposit Account, for the duration of the tenancy.
Landlords are not required to do so however. You are entitled to register with any scheme you are eligible for but we do require notification as to where this will be prior to the commencement of the Tenancy. Landlords must also supply both base and the tenants with a certificate of registration once you have done so.
What is an Inventory and am I required to get one when letting my property?
An inventory is a detailed record of your property, its contents, fixtures, fittings, appliances and their condition and cleanliness. There are many companies out there that provide them – our recommended professional supplier of choice is Spectrum Inventories. Whilst these are recommended by base and most Tenancy Deposit Schemes, they are not a legal requirement.
How can I ensure I get the highest possible rent for my London property?
Rental properties are an investment and should be treated as such. Therefore London Landlords should always be looking for viable ways to increase the demand for your property and therefore drive up the value. Each property is different due to its style, layout, size, amenities and location and therefore any advice here is general.
The majority of London rental accommodation, whether it be a house, flat, apartment, maisonette, studio or penthouse, is rented furnished. This is what the greatest demand is for and therefore it is often best to comply with this. However, avoid putting in cheap or budget furniture- this is often a false economy; your furniture should match the section of the market you are targeting. This doesn’t necessarily mean you need to spend a lot of money, but be stylish and choose quality- usually quality items work out cheaper in the long run as they last longer.
Also, in our experience, it is often best to stand out from the average London property. Don’t be afraid to use a bit of colour and give your property a bit of character. In an ideal world, it is better to have 3 people LOVE your house than 30 people just like it. People will often pay over the odds for a home they love and it is not uncommon to have people bid against one another in order to secure a unique, high-spec London residence. You can either do this yourself by doing research through the internet and interior design magazines or can employ professionals, like our own interior design team, to help you achieve your goals whilst keeping the focus on financial gain. Doing this will also help to minimise or even eliminate empty periods at your London property- remember, every week your home sits empty is money out of your pocket!
How should I furnish my London property for letting?
Should you decide to furnish a property, the level to which you decide to furnish is up to you. Most Landlords in London will supply the following furniture for furnished accommodation:
Double Bed, Mattress, Bedside Tables, Chest of Drawers and Wardrobe for each bedroom;
Sofas and/or Armchairs to accommodate tenants and at least a couple of guests, Coffee Table, Dining Table and an appropriate number of Dining Chairs for the living areas.
Should you decide to furnish your London property you must ensure that all the furniture supplied complies with the ‘furniture and furnishings (Fire) (Safety) (Amendments) act of 1993‘.
Some London Landlords choose to go further- supplying everything from Crockery to Artwork and Kettles to TVs. Whilst this can often help maximise rent achieved you must remember that anything you provide you are obliged to maintain. Therefore if you buy a kettle or even a TV and it breaks down during the tenancy (due to no fault of the tenant) you are legally obliged to get this repaired quickly.
What regular maintenance should I carry out on my London property?
This will be dictated partly by what market you target and also how careful your tenants are. Some London Landlords choose to redecorate their properties every year, or at the end of each tenancy, to ensure their properties are always provided in immaculate condition. Others leave their property for years and often see rents decline as a result. In truth, there is no fixed guide but in reality you should look to re-decorate your property every 3-5 years and use this time to carry out any minor or essential maintenance works at the property too. This will ensure that your property continues to achieve top rent and minimises maintenance required during tenancies.
We also recommend annual servicing of boilers, clearing of gutters and chimneys (where applicable) and at least one annual inspection to identify any issues or potential issues. We believe in pro-active property management whether you do this yourself or choose to use our Let & Managed service.
I am an overseas Landlord or may move abroad- do I need to do anything?
As a London Landlord living abroad you will need to apply to HM Revenues & Customs with regards to tax. You will need to complete an NRL form which can be downloaded from their site. You can find more information here or here
- http://www.hmrc.gov.uk/nonresidents/tmathe-non-resident-landlords-%28nrl%29-scheme.shtml
- http://www.hmrc.gov.uk/cnr/nr_landlords.htm
and can download an NRL1 form from http://www.hmrc.gov.uk/nonresidents/fagnrl1_bw.shtml
N.B. You should only complete this once you have chosen and instructed a London letting agent as their details will need to be included in the application.
What are my tax liabilities as a London Landlord?
This will vary immensely according to your personal circumstance and income, contributing factors relating to the property and where you are based. We recommend contacting a Chartered Accountant in the UK to advise you specifically on such matters. Our recommended accountant of choice, and used by many of our London Landlords, is:
Georgiades Charalambou & Co LLP- Chartered and Certified Accountants & Auditors
What Insurance do I need when letting my London property?
In reality, other than any obligations put on you by your Lender, Freeholder, etc. there are no Insurances that are currently mandatory in the London lettings market. However, there are a wide range of products available today specifically designed with Landlords and multiple property owners in mind.
As with all insurances, it depends what level of cover you wish to have in place however some of the products we can offer through affiliates include:
Rent & Legal Expenses Warranty
Buildings Insurance
Contents Insurance
Professional Indemnity Insurance
Commercial Property Insurance
Boiler/Heating/Water/Electrical/Appliance Breakdown Cover
You can obtain a free no obligation quote for many of these by visiting our insurance page here. For anything else, contact the office on 020 7033 1901.
