Landlords Information

At Goodearl Property, we provide a first class service both to landlords and tenants. If all the parties have a general understanding of the issues involved, we find that few problems arise with property rental.

These notes have been prepared to answer some of the questions that are put to us by potential landlords.

Mortgage Lender’s Consent

The consent of the mortgage lender (where applicable) will be necessary before the property is let out and we will require written confirmation from them that this has been granted. Please note that applying for permission after the tenancy commences could prejudice the tenancy. Consent can normally be arranged by contacting the branch of the bank or building society where the mortgage is held, and completing a relatively straightforward form. Some lenders may require sight of the proposed lease and other statutory documentation and we will be happy to provide you with the necessary assistance in this area.

Insurance

It is essential that you notify your insurers of your intention to offer your home for rent and, in certain circumstances, the insurers may impose special conditions, increase the premium, or both. If difficulties are encountered with your insurers over carrying the terms and conditions for your buildings and/or contents insurance, we will be happy to provide you with additional advice.

It is essential that you leave clear, written instructions regarding any insurance premiums that you wish us to pay and instruct your insurance company to send their accounts directly to us for payment.

Legal Protection Insurance

It is now possible to arrange a legal protection policy that provides wide-ranging cover in the unlikely event of a problem arising with your letting. A specific quotation for this type of insurance can be provided on request.

Inventories

An essential part of our letting service is the preparation of an inventory of the landlord’s furniture, fixtures and fittings. Unlike many of our competitors, we do not charge a separate fee for the preparation of an inventory, as we believe that it is an integral part of a managing agent’s duties to prepare the inventory and agree it with the tenant at check-in. You should ensure that instructions booklets are available at the property for all electrical appliances to assist the tenant in safe usage of the equipment and central heating systems, along with a note of the location of all stopcocks for gas, water etc , and any other information regarding the property that we may wish to pass on to clients. Similarly, if any item is under guarantee, details should be left with us.

Sufficient Funds

It is essential that you leave sufficient funds in your relevant bank account to deal with any delay or shortfall in rent reaching your account timeously. We cannot guarantee that there will be no delay in either receiving rent or bank transfer of funds.

Statutory Regulations

Gas, Electrical and Soft Furnishing Safety Legislation Consumer Protection Act (1987).
Fire and Furnishings (Fire)(Safety) (Amendments) Regulations 1983
Fire and Furnishings (Fire) (Safety) Regulations 1988
Low Voltage Electrical Equipment Regulations 1989
Gas Safety (Installation and Use) Regulations 1994

All residential property for let is now affected by the stringent safety regulations detailed above . There is no opt out for landlords or their agents, despite what you may have been told by some of our competitors. We will be happy to provide you with guidance and, if necessary, arrange for the required safety checks to be carried out. A summary of the requirements is as follows.

Gas Safety ((Installation and Use) Regulations 1994

These regulations apply to landlords of all domestic property and their agents. In practice, this means that all gas appliances within the property require to be checked on an annual basis by a Corgi registered installer and given a certificate of compliance. Where a landlord already has a British Gas Three Star service contract in place, these safety checks should be carried out as part of the agreed service contract , however, you should get confirmation of this from British Gas. In all other cases, we will arrange for a Corgi registered installer to carry out the necessary inspection and annual maintenance required by these regulations. Accurate records of the safety checks and maintenance visits must be kept and made available to tenants.

Furniture and Furnishings (Fire) (Safety) Regulations 1988

From 31 December 1996, all furniture (except furniture made before 1950) included in the accommodation that is for let has to meet all the current fire resistance requirements. As part of our letting arrangements, we will therefore ask you to ensure the compliance of furniture, particularly upholstery, with these regulations.

The regulations apply to sofas, beds, bedheads, children‘s furniture, garden furniture suitable for use indoors, scatter cushions, pillows, stretch and loose covers for furniture and other similar items. The regulations do not apply to curtains, carpets, bedclothes (including duvets) or mattress covers.

Electrical Safety

In addition to the gas and furnishings regulations, landlords are also required to comply with the appropriate sections of the Health and Safety at Work Regulations as regards electrical safety. In practical terms, this means that an electrical safety check must be carried out on the property on an annual basis, to include not only the installation , but also portable electrical appliances that are provided by the landlord. Again, we are happy to provide one of our nominated contractors to issue the necessary certification.

The Low Voltage Electrical Equipment Regulations, along with the Consumer Protection Act, require anyone engaged in the resale or hiring of portable electrical appliances to take adequate steps to protect users of those appliances from the effects of shock or fire hazard.

Effect of Regulations on Landlords

Having researched the matter and taken the appropriate legal advise, we are advised that all of these regulations apply to landlords, in particular, those engaged in the supply for letting of properties on a furnished basis.

Timescale and Transitional Provisions

The Fire and Furnishings Fire) (Safety) (Amendments) Regulations 1993 came into effect on 1st March 1993, from which time it was an offence to “supply“ in the context of a letting property, furniture that does not meet the fire resistant requirements set out in Section 14 of the 1988 regulation. This, in effect, means that we will require to satisfy ourselves that all properties new to the market meet the requirements of this regulation.

The Gas Safety (Installation and Use) Regulations require landlords and their agents to ensure that any gas appliance used in a let property is serviced and tested once a year to safeguard against carbon monoxide poisoning and a record of same is kept. Please note that gas detectors can now be supplied and fitted, if required.

Money Laundering Requirements

Legislation requires us to ask prospective landlords for a copy of their passport and a copy of a utility bill addressed to their principle residence.

Private Landlord Registration in Scotland

Landlords will require to provide their landlord registration number prior to Goodearl taking on their property for letting purposes, or to be in the process of applying for registration.

Scale of Fees

Letting Fee

Normally our Letting Fee is a percentage plus VAT of the first month’s rental, depending on the rental assessment. For this fee we would carry out accompanied viewings with prospective tenants and provide a follow up service with all enquirers.
As soon as interest is registered, we then process references, of which one is a bank reference, and the others, perhaps employers or previous landlord’s references. Thereafter, Missives of Let are prepared and concluded.

Prior to the tenant taking entry, a detailed inventory is taken in preparation for the check-in. On the date of entry, the tenant is checked into the property and the inventory is checked and agreed with the tenant. Meter readings are taken and then sent to the relevant authorities, and we advise the relevant council of the tenant’s date of entry for registration purposes, making the tenant(s) liable for Council Tax.

Management Fee

Our management fee is a percentage plus VAT of rental income per month, for which we collect rent and transfer the net amount to your nominated bank account. During the period of the tenancy, all necessary routine repairs are instructed by this office. No major repairs will be carried out without prior permission and you will be kept fully informed. Quarterly inspections are also carried out as well as regular routine inspections.

Other Charges

Website

We recommend your property is marketed on the three major property websites (S1homes,Citylet and Rightmove). There will be a single competitive charge for this until your property is let. Your property will be advertised on the Goodearl Website free of charge.

Tax Return

We will prepare a statement with the appropriate information suitable for inclusion in your tax return. The cost of this service is £50 plus VAT

Forwarding Mail, Telephone Calls or Faxes.

If you have not arranged to have mail forwarded, we can do this for you at cost. Telephone calls or faxes outwith the UK will also be charged at cost.

Vacant Property

Should you wish the property checked regularly whilst empty, we would organise inspections to check the property over and remove any junk mail, the cost of which is £15 per visit. You should also check your insurance over endorsements in the event that they have a policy on vacant property and the number of checks required when the property is vacant.

Emergency Call Out/Essential Contractor Work

Should it be necessary for a member of our staff to attend the premises outwith business hours, there will be a charge of £50 per hour, plus VAT. Staff required to sit in premises to accommodate contractors during office hours will be charged out at £50 per hour, plus VAT.

Court Appearances/Rent Tribunal

Should we be require to appear in court on your behalf, our charge will be £50 per hour. plusVAT

Re-Lets

Re-lets to existing tenants attract a £100 administration fee plus VAT.

If you have any questions regarding the charges outlined please give us a call on 0141-248-6768 and ask for Archie Carmichael.