Today's Property
Management Providers...
Successful property management means you
need to be aware of your legal obligations as a landlord as well as the
practical on going activities (and subsequent expenses) that you or your agent
(if you are using one) will undertake in the course of managing the let. Under
the Housing Act 1996, and the Landlord and Tenant Act 1985, you, as the
landlord, will have various Landlord Obligations both to the Managing Agent
and/or your tenant – you need to be aware of these. Conversely, your new tenant
will, by law have certain legal rights, granted by statute, including the right
of 'quiet enjoyment'. Similarly, your tenant will have some Implied Obligations,
including paying bills, not to cause damages, paying rent and seeking
permissions in certain circumstances. The week to week (or month to month)
management activities that you, as landlord, will need to plan and
undertake are as follows.
Firstly, to simplify property management
administration, it is advisable that the collection of rent is on the same day
each month - this should ideally be the start date of the tenancy. Add a clause
to your Assured Shorthold Tenancy agreement detailing how any potential future
Increases In Rent are to be determined. This must be done in accordance with
management Statutory Restrictions.
Secondly, if you are not used to dealing with
tenants, then it might be wiser to use a letting agent to do the property
management on your behalf. Effective communication is so critical. Treat your
tenants fairly and with consideration but do not get personally friendly with
them (even if you like them). If you set their expectations fairly at all times,
avoiding confusion (whether it be personally, on the phone or via a letter),
your tenancy should run smoothly;
Thirdly, it is a fact of life that boilers break,
roofs leak, washing machines stop working and so on. These types of unforeseen
management repairs also include painting and decorating, treatment of wooden furniture for
damp, replacing leaking pipes etc. If you are using a letting agent, they will
usually have pre-agreed management responsibility to fix minor
problems. If you are not using an agent you must be prepared to accept phone
calls at any time and be responsible enough to sort out angry tenants. You
cannot undertake major works or major improvements on your property (like
converting the loft) without consulting and getting the permission of your
tenant first. The tenant has right of “quiet enjoyment”;
Fourthly, you must make sure all property gas pipe work
(valves, pipes, regulators and meters) and installed appliances (cookers, hobs,
boilers, water heaters, fires, wall heaters, gas fridges, flues, central heating
systems, fires etc) are checked, maintained annually By A CORGI Engineer and
hence safe;
Fifth, make sure your property tenancy agreement includes
a clause about the requirement to do half yearly inspections to ensure the
property is being well looked after. This will also allow you to see if any
repairs need undertaking that the tenant may not have informed you about (or
they have overlooked the need to do a repair);
Six, you mist submit annual accounts to the
Inland Revenue, showing any profit or loss and hence tax payable as a result of
your investment; Seven, regular expenses and rental income
should ideally be managed using a Separate Business Bank Account. Having a
separate account will simplify accountancy matters and allow you to understand
your cash flow position; Lastly, if you are managing the let yourself (property
management), there is an inevitable level of hassle and Administration to deal
with and pay for.
In order to ensure the smooth Inventory Check Out
Process for both yourself and the tenants, a simple documented process should be
pre-agreed by both parties. It helps sets the expectations of your tenant(s) if
you send a letter a few weeks beforehand explaining the process, reminding them
that any small items that may have been broken must be replaced and outlining
the process for the return of their deposit. Remember to advertise the property
for re-letting, a couple of weeks before the checkout date to eliminate void
periods for getting new tenants in........
