A Landlord's Guide to Residential Letting

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A Landlord's Guide to Residential Letting
Management

• Susie Crolla
• The Guild of Letting Management

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The Guild of Letting Management

• Educational
• Vocational
• Specialist
• Professional
• Knowledgeable
• Committed
• Focused on residential lettings management

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The Letting Process
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The Landlords Obligations

• Insurance of the property
• Payment of ground rent service charges
• Maintenance of appliances equipment
• Maintenance of the property
• Permission from superior landlord
• Permission from mortgagees
• Compliance with furniture and furnishings
  regulations
• Compliance with gas regulations
• Compliance with all other safety regulations
• Give the tenant quiet enjoyment of the property
• Provision/ maintenance of smoke alarms

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The Landlords Obligations

• The list may appear brief but most of the
  obligations are STATUTORY and cannot be avoided
  or passed on to a third party.

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Starting off Choosing the tenant

• Referencing VERSUS Gut Instinct
• Start off as you mean to go on BE PROFESSIONAL
  Use a tenant application form.
• Find out as much about the prospective tenant as
  possible.
• If unsure take extra care ask for a GUARANTOR.
• Vet the guarantor.
• Remember you are passing over your biggest asset
  to a stranger.

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The PaperworkWhich agreement to use

• The Assured Shorthold Tenancy (AST) agreement
• 90 of residential tenancies would be under an
  AST
• The AST is for INDIVIDUALS only
• The AST must be fair Legislation does exist
  covering Unfair Terms of Contract
• The contract binds the landlord the tenant

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The ASTSome important points

• The tenant has EXCLUSIVE POSSESSION of the
  property
• The tenant has the right to EXCLUDE ALL OTHERS
• Negotiation should take place before the contract
  is finalised
• If changes have to be made after the contract is
  signed be sure to consult with the tenant
  mutual agreement from both landlord and tenant is
  required

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Tenancy Deposit ProtectionSome landlords do take
deposits

• Deposits belong to the tenant should only be
  touched if there is damage, dilapidation or
  unpaid rent at the END of the tenancy
• There are 3 administrators
• There are 2 schemes -
• Insurance based
• Custodial

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Tenancy Deposit ProtectionPenalties for
Non-Compliance

• Three times the deposit amount (ie 3 x 600.00
  1800.00)
• The landlord CANNOT serve notice

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The Inventory Schedule of Condition

• Even if a landlord does not take a deposit an
  inventory or schedule of condition should be
  carried out
• This protects the landlord and protects the tenant

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General Administration

• The private rented sector is a minefield where
  administration is concerned
• Processes procedures can mark the difference
  between an exceptional landlord and a poor one
• Failure to maintain accurate and up to date
  records could lead to serious problems

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Property Management

• Communication an undervalued skill
• Take care of your tenant the aim is to keep the
  tenant for the long term
• Keep the tenant informed
• Remember your obligations - The tenant is the one
  to complain that a landlord has not been
  fulfilling his obligations
• Remind the tenant of his/her obligations

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Crisis Management aka When things go wrong

• What is breach of contract?
• What is considered serious?
• How should breach of contract be dealt with?

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Continuous Professional Development

• What is the point?
• No one knows everything
• Knowledge IS power
• Learning makes us more efficient
• Use good strong resources

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A Summary

• Seek advice whenever in doubt no question is a
  silly one
• Read the documents you are using if you cant
  understand them then neither can the tenant
• Process documents carefully
• Always respond to tenant concerns questions
• Stay up to date