Information for Landlords

1.0 INTRODUCTION

1.1 The Benefits of letting

ULTIMATE CONNEXIONS provides a range of letting and management services based on the experience, skills and expertise of our lettings team. You can be assured that we have a detailed understanding of the lettings and management sector and will ensure that you are given the best possible service.

For most people, their home is probably the single largest investment they have made, it has been acquired after many years of hard work. So naturally the decision as to its disposal requires careful consideration.

Letting can help cover mortgage repayments and general outgoings, whilst hopefully, providing a profit as the property continues to appreciate in value.

Over the last few years and, following the introduction of the 1988 Housing Act which offers greater protection and possession rights to Landlords, there has been resurgence in the lettings market.

People from all walks of life are looking to become involved in the rental market whether Investors, Companies, people who need to relocate with their work or homeowners who are having difficulty in selling their own properties. Increasingly, large numbers of people are entering the ‘Buy to Let’ sector as an opportunity for investment.

As a result, Landlords have come to expect extensive knowledge and expertise from the Agency they choose to act in their interests.

1.2 Why let - why not leave your property empty?

What is probably your most valuable single asset, could if left vacant become the target for potential squatters or vandals, as well as being subject to general deterioration. If neglected, defects could worsen and prove costly if not attended to.

You may have an investment or retirement property, and whilst you live elsewhere, a responsible tenant can help protect your asset and contribute towards its upkeep.

As a result of the changes that have taken place to Council Tax in 2004, empty properties now attract the standard Council Tax charge. Once the property is vacant the standard Council Tax charge will apply immediately.

Another difficulty that will arise will be with regard to building and contents insurance. Normally insurance companies do not cover properties that are vacant for more than 30 days.

2.0 STEPS TO LETTING YOUR PROPERTY

2.1. Presentation

At ULTIMATE CONNEXIONS we know from experience that presentation is very important.  In  our business how we set things up often sets the course for where things go. It is vital that your property attracts the right kind of attention and therefore to offer a well presented home is the right start.

The interior walls should be neutral colours and carpets plain, fabrics and furnishings should be of a good quality able to withstand reasonable and tear. If there have been any pets in the property or following vacant possession from previous tenants the property should be thoroughly cleaned, it may be advisable to use professional cleaning contractors. The front door should be clean and the entrance hall clear of any obstacles.
If the property is to be left unoccupied, depending on the time of year, leave the heating ticking over and place static air fresheners around the property.  This would provide a welcoming atmosphere  for prospective tenants and could make all the difference as to whether they rent your property.

If refrigerators and freezers are left at the property and are turned off the doors must remain open to avoid any fungal growth or mildew which would result in a bad odour.

When visiting a property we will gather up any post and forward it on to you.

Gardens should be well maintained and tidy.

2.2 Mortgaged properties

If you have a mortgage on your property we recommend that you seek your lender's permission to rent the property out.  They will usually send you an 'application to let' form which should be filled in and returned to them immediately.  If you have any problems completing this form contact ULTIMATE CONNEXIONS and we will be happy to assist as part of our friendly and efficient service and at no extra charge to you.

Most lenders understand the need for their customers to let their property and are quite forthcoming in giving permission as long as the correct notices, within the 1988 Housing Act are being served in the correct way and a professional company is employed to manage the property.

2.3 Insurance

The majority of insurance companies provide buildings and contents insurance for owner occupiers. When the property is occupied by tenants this will become invalid, you should inform your insurance company of your intention to rent out your property. The insurance company will advise whether they can continue with your existing policy or not, however, you may have to terminate your current policy and take out the appropriate levels of cover with another insurer.

2.4 Viewings

We always accompany any prospective tenants who come to view your property.  This is to ensure that again we are working in your best interests.  Security is of the upmost importance therefore we hold concise records on all of our prospective tenants.

It is a good idea for us to hold keys for your property.  This would allow us to immediately react to any enquiry and in doing so secure the let for you.

Once a tenant has decided they would like to take your property we will negotiate on your behalf a suitable let. 

You have the final say in who rents your property and you base this decision on our professional recommendations also bearing in mind your own specific requirements.

  Do they smoke ?  Have they any pets?
  For how long do they want the property?
  Will they be claiming Housing Benefit? 

These are some of the questions that are asked when we select a tenant for recommendation allowing you to make an informal decision on your letting.

2.5 Legal duty of care

Under common law, the Landlord must ensure that properties to let are safe and failure to comply with Safety Legislation is considered a criminal offence resulting in legal action and prosecution.

As your Managing Agent, we can carry out safety checks upon your request, deducting the cost from your rent.

1. Gas – (The Gas Safety (Installation & Use) Regulations 1994 (amended 1998)
There has been an increasing number of fatalities with tenants over recent years due to faulty gas appliances.  To counter this increase the government has introduced safety laws regarding gas appliances.
These regulations state that Landlords are now responsible for the safety of their tenants and are legally obliged to service any equipment regularly and have carried out, at least once a year, a gas safety check.  The government are imposing some very large fines and penalties if the regulations are not complied with.
ULTIMATE CONNEXIONS require all landlords to comply with this regulation and strongly recommend, that all gas appliances are serviced by a CORGI REGISTERED ENGINEER once every twelve months if you require any assistance then we can arrange this for you.

2. Electricity  - (The Electrical Equipment (Safety) Regulations 1994 & Electricity at Works Regulations 1989 
The Landlord must ensure that all mains voltage household electrical appliances and equipment is tested and safe to use. Any non-repairable items must be replaced and removed.
An NICEIC or similarly qualified electrical engineer must carry out these tests on an annual basis and we would also recommend this is done upon change of Tenancy.
All operating instructions must be left in the property for the Tenant’s benefit.

3. Furniture and Furnishings – The Furniture and Furnishings (Fire) (Safety)Regulations 1988 (amended 1989 & 1993)  
Soft furnishings (such as mattresses, settees, bed bases, cushions and padded headboards) must meet fire resistance standards and bear a permanent  label confirming this. If compliance cannot be proved, the item must be removed and replaced.

4. Smoke Detectors
Whilst only properties built after 1992 legally require the fitting of smoke detectors (Building Regulation 1991), we would strongly recommend that smoke detectors are fitted to each floor of the property being let.

NB: The penalty for failure to comply with statutory safety legislation is currently a maximum of £5,000 and/or 6 months imprisonment for each offence. This can be harsher in the case of injury or fatality.

The above is only a guide to the legal safety requirements and should you have any further enquiries, we would recommend that you contact a qualified solicitor who will be able to verify these in full.

2.6 Tenancy  agreement

The Housing Act 1988 (amended 1996) has given rise to two types of Tenancy: Assured and Assured Short hold Tenancy as well as the existing Company Tenancy and Contractual Tenancy.

A) ASSURED TENANCY

Certain criteria have to be satisfied for a tenancy to qualify for assured status. Assured Tenancy gives the Tenant security of tenure but at a market rent negotiated between the parties. The Landlord may request back possession of the property let on an Assured Tenancy but must obtain a COURT ORDER. This has its advantages but is not as flexible.

B) ASSURED SHORTHOLD TENANCY (AST)

This Tenancy is attractive to Landlords as it offers market rents without security of tenure beyond the contractual term and the majority of Tenancies are based on this format. However, certain criteria must first be met:

a) The Tenant must be an individual
b) The property must be the Tenant’s main residence/home
c) The rent cannot exceed £25,000 per annum
d) The Landlord must not occupy the same property

If the property is let under an Assured Short hold Tenancy, the Landlord can issue a Section 21 Notice to guarantee possession provided the term of the Short hold is expired and not less than two months notice has been given by the Landlord stating he requires possession.
If court action is needed, this can be obtained on a number of different grounds against the Tenant.

However, it should be noted that is a criminal offence under the Protection from Evictions Act 1977, for a Landlord to threaten or forcibly evict a Tenant from their property.

C) COMPANY TENANCY
 
This is governed by contract law and is not regulated by the Housing Acts of 1988 or 1996. It is used when a Private or Public Limited Company (excluding partnership or sole trader) want to enter into a Tenancy.
There is no security of tenure and rental payments are often made on a quarterly basis by prior agreement.
 
D) CONTRACTUAL TENANCY

Contractual Tenancy also falls outside the provisions of the Housing Acts of 1988 and 1996 and is not regulated by statute. It is most commonly used where the rent exceeds £25,000 per annum and both parties have the freedom to contract as they choose, but must then rely solely on the provisions of that Agreement.

2.7 Selection of  Tenant

2.7.1 Finding a suitable tenant

As the managing agent we act on behalf of the Landlord, one of the principal functions is to select the tenant that meets the landlords requirements. We will extensively market your property using a wide range of media, our aim is to secure the right tenant at the right rent in the shortest possible time. On your behalf we will take references on every individual tenant who is to be named in the tenancy agreement. This will normally mean everyone over 18 years of age intending to reside in the property.
To ensure that this vital process is carried out objectively and thoroughly as possible we use an independent credit referencing company, the tenant would be responsible for paying the fees for this service. The report sent to us by the credit referencing company will be actioned on the basis of its findings. The applicant may be a suitable tenant and acceptable to underwriters for legal and rent guarantee insurance policies. To further strengthen your position we may also take a Guarantor to back up the tenants ability to meet their financial commitments to you.
 
2.7.2 Will the tenant look after my property?

As part of our property management service, we regularly inspect the property during the tenancy and provide a written report to you. These inspections are usually carried out quarterly. From our extensive experience we know that if the tenant understands that the property and their occupancy of it is being closely monitored, they are more likely to maintain a higher standard of care in that property.
The tenancy agreement makes reference to the fact that we have the right to visit the property at times acceptable to the tenant provided reasonable notice has been given. If you wish to visit the property yourself during the tenancy, we will arrange this for you. it would be advisable though to be accompanied by a representative from Ultimate Connexions. If the property is not being maintained to an acceptable standard then we would discuss with you what action can be taken to bring back the property to an acceptable standard.

2.7.3 Should the tenant damage my property

Before the tenant moves into the property, a dilaphidations deposit is taken from the tenant.
The deposit is held in a secure clients account throughout the tenancy by Ultimate Connexions. When tenants are checked out of property, a final inspection is carried out. A comparison is made against the original inventory, taking into account the length of the tenancy an allowance will be made for fair wear and tear. A list will be compiled of any redecoration, cleaning, repairs and any replacement that maybe required.
We will discuss with the tenant, the extent of the work to be carried out and instruct contractors to provide estimates before commencing work. Once invoices have been received, only then will the net deposit be returned to the tenant within a maximum of 28 days provided that there are no disputes and all utility bills have been settled.

2.8 Inventory

The Inventory is required whether the property to let is furnished or unfurnished and accurate descriptions of the overall condition of wall/floor coverings, kitchen and bathroom fittings to name but a few are essential. Amounts cannot be withheld from the Tenant’s deposit unless the loss or damage is proved to have been caused by the Tenant.

In the event that any dispute concerning loss or damage to your property is not amicably resolved then the matter will be referred to the Courts and arbitration, but should be noted that any judgement will be on the basis of written documentation – the Inventory.
An Inventory and Check In should be drawn up. This is an important legal document which forms an integral part of the Tenancy Agreement and, as such, it is a false economy to prepare your own in most cases.

3.0 SERVICES PROVIDED BY ULTIMATE CONNEXIONS

3.1  A brief guide to Property Management

• Preliminary inspection of the property to be let, advice on likely rent obtainable, generally take instructions and give advice on financial and legal consequences of letting.
• Advertising property and recommending it to selected applicants from our register.
• Taking up references and otherwise investigating financial standing and character of any prospective tenant.
• Collecting an appropriate dilaphidation’s deposit from the tenant and holding for the duration of the tenancy.
• Providing a Full Inventory and Schedule of condition.
• Drawing up and executing the appropriate tenancy agreement.
• Taking readings of gas and electric (and water where metered) when the tenant takes possession and on quitting the property.
• Informing gas, electric, water and Council Tax authorities of the name(s) of the tenant(s) .
• Collecting and remitting rents to the owner after deduction of expenses, together with monthly rent statements.
• Making full periodic inspections and providing written reports throughout the tenancy.
• We offer a Free Rent Guarantee Scheme (please ask for details).
• Negotiating the renewal of the tenancy agreements prior to the expiration of the current agreement in accordance with the landlord’s instructions.
• Administering any rent arrears or chasing late payments.
• Acting constantly as a buffer between you and any tenant whilst protecting your best interest at all times.
• Full maintenance and repair service using professionally qualified Contractors.
• Providing an ‘out of hours’ emergency service.

3.2  Maintenance and Repairs

Repairs are of course necessary to a property throughout the length of the tenancy, and you must be prepared for this eventuality. The repairs that arise may be of a minor nature, however, they may be of significant items such as cookers, fridges/freezers, boilers and washing machines as they age and may even require replacement.

It is our policy to inform the landlord of any items of maintenance or repairs as reported by the tenant. We will visit the property and confirm the report before contacting the landlord. We will then take your instructions, we can make arrangements on your behalf to obtain estimates from our local contractors of your choice. We will agree in advance the level of responsibility you wish us to have in arranging repairs and replacements.

Where there is an emergency repair such as a burst pipe or gas leak, there are different legal obligations on all parties and we may need to instruct on the work immediately to prevent further damage to the property or health and safety risk to the tenants. In such circumstances we will report to you, but immediate action will be required and this will be discussed with you. It is also made clear to tenants that should they instruct a contractor without our approval then they may be liable for the full cost.

Major repairs will of course be discussed with you first and if necessary we will obtain estimates for your approval.

A maintenance service is available to both landlords and tenants at cost for the following:-
Internal/external decorating
Electrical services
Glazing
Plumbing
Carpentry
Gardening/Fence repairs
General Cleaning
Carpet Cleaning
Cooker Cleaning

3.3. Renewal of the tenancy agreement

About three months before the tenancy is due to end, we will contact you to discuss further instructions. We will take the appropriate action with the tenant to either renew their tenancy or to schedule their check out. On some occasions where we have exceptionally good tenants, some landlords have opted to retain the tenants and deal directly, using a standard Assured Shorthold Tenancy agreement. If you wish to manage your property directly then you will incur our standard tenant finding fee, for more details of this fee please contact the office.

Information for Tenants

1.0 INTRODUCTION

We would like to extend a warm welcome to all prospective tenants. Our tenants come from all sectors of the national and international community ranging from students to professionals.

At Ultimate Connexions we let and manage a variety of furnished and unfurnished properties throughout Luton and Dunstable for rent. All security deposits are held in a designated Clients Account and fully bonded.

Our site contains a constantly updated register of rental property. Click here to see our latest list. In order to receive a regularly updated list of our available rental properties, please register and we will contact you with details of new properties to suit your specified requirements.

For more detailed information or appointments to view please contact us on (01582) 487900.

Please keep in mind that a range of rigorous checks on all prospective tenants will be carried out and we will require at least one full month’s rent as a deposit and one month’s rent paid in advance. Should you be uncertain as to your suitability or have specific requirements, please contact us.

2.0 A TENANT’S GUIDE TO LETTING

Although Letting Agents have different procedures, this guide is intended as a general overview to assist you when renting a property. We have set out below a few significant pointers to assist you.

2.1 TO SECURE YOUR PROPERTY

Once we have found you a suitable property, at this point, you will be requested to provide a reservation fee which holds the property for you. However, if the Tenancy Agreement is not signed by you (the Tenant) within 7 to 14 working days after receipt of your application, the Landlord reserves the right to re-offer the property. In these circumstances or, should your references prove unsatisfactory, the reservation fee would be non-refundable.

2.2 AGREEING THE LET

As soon as your reservation fee has been received, we will apply for references and draw up the relevant documentation which will form the basis of the agreement between you and the Landlord.

You will be expected to provide:

identification/proof of residency
Acceptable forms of identification are Passport, Student Photo ID and Driving licence with Photo.
All tenants must show proof of address. Only the following forms of identification are accepted:

Utility bill (less than 3 months old)
Full driving licence (paper)
Council tax bill (less than 3 months old)
Mobile phone bill (less than 3 months old)

2.3 REFERENCES

We will also contact your employer and your landlord if you are in rented accommodation already. Your previous employer will also be contacted if you have recently changed jobs. If you are self employed we will need to contact your accountant. A credit check will also be conducted.

To assist us in collating the necessary references, it would be advantageous for you to warn the above individuals in advance that references are required as these can be returned to us within a matter of a few days, barring any delays.

Occasionally, a guarantor will be required if, for example the tenant has not been continuously employed for the past 18 months; has been working abroad in the previous 6 months; the tenants’ income falls short of our criteria or the tenants’ employment is considered as changeable.

Please note that the same criteria applies to the guarantor and, furthermore, the guarantor must earn the equivalent of 3 times the yearly sum of the rent, be in full time employment or be able to prove by bank statements that they have “independent means”. All tenants should be able to provide a guarantor and should the tenant be unable to provide one, we will decide that the tenant has withdrawn their application. The tenant will therefore forfeit their deposit.

The guarantor must be aware that they will stand as guarantor for you, for the entire occupancy of the property, not just for the period of the initial tenancy term.

2.4 HOW MUCH DO I NEED TO EARN TO BE CONSIDERED FOR THE PROPERTY?

Having passed all the referencing criteria to be considered for the property and, subject to the Landlord’s decision, you must earn at least 1.5 times the yearly rent (however, you will require a guarantor) or at least 2.5 times the yearly rent (you will qualify on the income part of the referencing without a guarantor).

2.5 TENANCY AGREEMENT
 
An appointment will be arranged with you to visit our offices to sign the Tenancy Agreement when all references have been received. The Landlord will also be asked to sign their copy of the document.

2.6 RENT AND DEPOSIT

You will be required to provide the agreed sum of rent and deposit before taking possession of the property.

The deposit is required for the full tenancy against loss, damage or charges payable at the termination of the tenancy. Whilst this is usually the equivalent of 1.25x  month’s rent, this may vary therefore we suggest that you contact the lettings department. The deposit will be held by Ultimate Connexions in their designated clients’ account and is fully bonded. It is returnable in full at the end of the tenancy subject to final inspection of the property and it should be noted that deductions will also be made for cleaning should the property (and garden areas) not have been left in a satisfactory condition.

Rent is to be paid monthly in advance (professionals only) commencing on the first day of the tenancy and then on the same day each month thereafter. The preferred method is by bank standing order.

2.7 FEES
 
We charge an application fee (this is dependant upon the property) inclusive of VAT which is non-refundable, even if a tenancy is refused on the grounds of references or if the tenant withdraws from taking the property. A fee equivalent to 50% of the application fee including VAT is charged to the tenant for renewal of all fixed term tenancies.

2.8 COMPANY LET
 
Company applications are acceptable where the company will be paying the rent. The fee will be 25% of the first months rent plus VAT.

Please note that all monies to be paid on the signing of the agreement prior to the occupation and should be paid in cash or by bankers draft, unless they are paid a minimum of seven working days prior to occupancy

2.9 CHECK IN AND CONDITION REPORT
 
If we have been instructed by the Landlord, a Condition Report will be prepared of your new home and a convenient appointment will be made with the Inventory Clerk to carry out a Check In report to coincide with your move in day.

All information is provided in good faith. It does not replace the advice of a qualified legal advisor. We will accept no responsibility for any inaccuracies.

2.10 OTHER POINTS OF INTEREST:

1. The Tenant will be responsible for insuring their own possessions, a copy of the schedule of insurance must be provided before keys will be given.
2. The Tenant will take over all utilities such as Gas, Electricity, Water/Sewage charges, Council Tax & Telephone upon moving into the property. Ultimate Connexions will be responsible for contacting the relevant suppliers accordingly prior to commencement of the tenancy.
3. The Landlord is responsible for any repair/maintenance problems to appliances etc. but the Tenant is responsible for any abuse or breakages which should be reported immediately.
4. Decoration of the property must only be done with your Landlord’s permission
5. No pets are allowed unless the Landlord has given consent
6.  Reasonable notice should be given in the event that the Letting Agent or Landlord wishes to inspect the property outside pre-agreed times. It is usual for the Agent to inspect the property once every three months during the term of your Tenancy and the Tenancy Agreement should cover this eventuality.
7. Most lets are for 12 months, although some Landlords may consider shorter terms of say 6 months.
8. Should you wish to quit your Tenancy earlier than the agreed term, you will be liable for all rent until the end of the agreed Tenancy.
9. There is no set law regarding the time limit for returning deposits but this is normally subsequent to the final inspection of the property. Letting agents generally encourage Landlords to employ a professional inventory agent to conduct the inspection and produce a report as to the condition of the interior at the beginning of the Tenancy and again at the end but this is not obligatory. In most cases, the deposit will be returned once any damages are ascertained by the Tenant/Landlord/Inventory Clerk and appropriate deductions agreed.
10. The most common type of Tenancy Agreement is the assured short hold used for 6-12 month lets and usually takes the form of a standard contract between both parties.
However, should any “extras” be agreed such as certain furnishings to be provided by the Landlord, you should ask that an extra clause be added to the agreement to this effect. It should be noted that the landlord is not obliged to carry out promises so it is important that your requests are documented.
11. The Letting Agents will deal with the property viewings, references, agreements and getting you moved in. If the agent has been instructed to manage the property then you will normally report any repairs or queries to them. If not, then you will deal directly with the Landlord.
12. The Letting Agent, whilst acting for the Landlord, operates within accepted guidelines in the industry to ensure that you are able to rely on a professional letting agent taking your concerns seriously and advising the Landlord if they are being unreasonable. In this regard, you should be assured that the property conforms to all safety regulations and is fairly priced.
13. You require a professional service and, as such, Ultimate Connexions will ensure that professional standards are met, for example, the correct Tenancy Agreement is used; proper procedures are in place for reporting and dealing with repairs; safety checks are conducted and a bonding scheme is provide to protect your deposit.