- How much will it cost me to let my property?
The costs involved in letting your property consist of:
Estate agent Registration & Marketing Fees
Registration and marketing fees are paid for upon instruction and prior to any marketing commencing. These usually are a fixed price + VAT.
Estate agent commission
Your commission fee, which is usually payable when a tenant is introduced and enters into an agreement to let the property. This is charged as a fixed fee + VAT.
Energy Performance Certificate
It is a legal requirement to have commissioned an EPC before marketing can commences. Pinkerton Murray can organise this legally required document on your behalf.
Inventory and check-in report
An inventory and check-in report, which should be organised before a tenant moves in and we can arrange to do this on your behalf. We will firstly provide an estimate as costs vary depending on the size of the property.
Back to top- How much will it cost to have my property managed?
Your Property Management fee is charged as a percentage of the rental price + VAT and is payable on a monthly basis, though please refer to your Terms and Conditions for an outline of the services provided.
Back to top- What kind of tenants would I expect to be renting my property?
The majority of tenants are professional people. There is, of course, always a demand for executive and student accommodation but we will always discuss these options with you.
Back to top- How can I be sure that a tenant won't destroy my property?
We use a careful vetting system and carry out a series of checks to make sure that potential tenants are reliable, careful and trustworthy. There is always a risk that problems may arise but our experience is that these occurrences are relatively few and far between.
Back to top- How much rent could I expect to achieve for my property?
Rents vary greatly from property to property and from area to area. Décor, size and furniture will also have an impact. The best way to gauge the rental value of your property is for one of our experienced valuers to visit your property and provide a free rental assessment.
Back to top- What can I do to improve the rental value or the chances of finding a tenant?
It is worthwhile ensuring that the property is professionally cleaned – clean, tidy properties are quicker to let and a yield better rental income than poorly kept properties. It’s up to you to decide whether to furnish the property and to what extent, though if you do decide to provide furniture you must allow for reasonable wear and make sure that it meets current fire safety regulations. Good quality carpets and curtains must always be provided.
Back to top- What length of Tenancy should I opt for?
We use an Assured Shorthold Tenancy (AST) as this type of lease gives you the best level of protection. Legally the shortest term for an AST is six months but (within reason) there is no maximum time limit. No matter the length of the lease term we set all tenancies on an agreement that after the initial fixed period expires they run on a month-to-month basis. This affords you the flexibility to seek repossession when required.
Back to top- What should I do about the utility bills and notifications?
Before the commencement of a tenancy you should ensure accurate meter readings for the property are taken and sent to your utility providers as this will allow them to close your accounts. If you choose our Full Management Service we will arrange for the tenant to sign and agree to readings that we have taken at the point of their tenancy commencement. You will also need to cancel your telephone account, but do not disconnect the telephone line. This allows the tenant to use the line in their own name if they wish.
Back to top- Do I need to inform anybody else that I am letting the property?
You should inform you mortgage lender to obtain their consent and your freeholder, if you are a leaseholder. You should also inform your insurance company to receive their consent to the tenancy or set up a specialist Landlords Insurance policy to ensure you are covered for third party public liability risks. Also check their un-occupancy stipulations as some insurance companies only allow the property to be empty for a maximum of twenty one days.
Back to top- How many sets of keys do I need to provide?
You will need to provide one full set of keys including those to any gates, window locks and mailboxes. Should you decide to appoint Pinkerton Murray to manage the property you will need to supply two full sets. All windows should open and close easily and keys for window locks should be left in a specified place within the property.
Back to top- How do I receive my rent?
Depending on which service you have chosen will determine how and when you receive your rent:
Letting Only Service
You will receive, via Pinkerton Murray, the first month's rent and the deposit at the start of the tenancy, less our fee for this service and any other costs that are attributable. We then set up a standing order from the tenant directly to your nominated bank account from month two onwards.
Letting & Rent Collection Service and Letting & Management Service
We collect the first months rent, deposit and then each month's rent thereafter. We then credit this directly to your bank account, less our monthly charge, via direct transfer into your nominated bank account.
Back to top- How much is the tenant's deposit and what happens to it?
Typically this amounts to one month’s rent and is payable upon the signing of the Tenancy Agreement. The deposit will then be held in our designated Client’s Account if we manage the property. For your protection Pinkerton Murray hold Client Money Protection Cover which safeguards your deposit.
Back to top- When is the tenant's security deposit returned to them?
Once a representative has carried out the final inspection to ensure the property is left in good order and final receipted utility accounts are submitted to the office the tenant's deposit will be returned. This is only applicable if our management service is used. If you have chosen to manage the property yourself you must follow the correct procedures for refunding the tenant’s deposit.
Back to top- What is a condition report, and what is an inventory?
A condition report is a document that details the condition of the property at the outset of the tenancy. An inventory details the condition of the property along with any furnishings, fixtures and fittings. As a landlord, you should ensure that an up to date and suitably detailed inventory or schedule of condition is provided to the tenants at the commencement of each tenancy. Without a good inventory or schedule of condition, it is difficult to assess and justify any deductions for damage from the tenant's deposit at the end of the tenancy.
Back to top- How much does an inventory cost and who is responsible for organising this?
Prices vary depending on the size of your property. Please speak to one of our property consultants to discuss the costs for your property.
Back to top- Will my property be checked on regularly to make sure it is being looked after?
We provide three visits per annum, once every four months for each of our managed properties. If you decide to manage the property yourself inspecting the property will become your responsibility.
Back to top- What about other aspects of maintenance?
The landlord is usually responsible for the payment of ground rent, any service charges, most repairs and maintenance of the property. We maintain lists of reliable contractors to cover all trades, however you may leave specific instructions with us to use nominated contractors of your choice.
Back to top- What would you recommend I do to my property to get it ready for letting?
Experience has revealed that the secret to a successful, smooth running tenancy is a good relationship with the tenant. It is important that tenants feel comfortable in their new home and that they are receiving value for money. lt follows therefore that a well maintained property in good decorative order will go towards this, whilst also achieving a higher rental figure. Tenants are also more inclined to treat such a property with greater respect.
Condition
Electrical, gas, plumbing, waste, central heating and hot water systems must be safe, sound and in good working order. Repairs and maintenance would be at the landlord’s expense unless proof of misuse can be established.
Appliances
Appliances such as washing machines, fridge freezers etc. should be in working order. In properties with no outside space it is recommend that a combined washer dryer or separate dryer is supplied. Again repairs and maintenance are at the landlord’s expense unless proof of misuse can be established.
Decoration
Interior décor should be in good condition and preferably in light and neutral colours.
Furnishing
It is recommended that only minimum furniture and furnishings are provided in the case of furnished properties and these are should be of good quality. It is preferable that any items to be provided are placed prior to viewing to allow accurate viewing of the property. If the property is to be let unfurnished it is recommended that carpets/wooden floors, curtains/blinds and large kitchen appliances are provided.
Gardens
Gardens should be left neat, tidy and any lawns cut. Tenants are usually required to maintain gardens to a reasonable standard, though we would advise, especially if you value your garden that arrangements be made for maintenance by a regular gardener.
Cleaning
At the start of any tenancy the property must be thoroughly cleaned including skirting boards, curtains, upholstery and windows. At the end of the tenancy the tenant is responsible for leaving the property in similar condition. Where they fail to do so the costs incurred for cleaning would be deducted from the tenants deposit. We would recommend that every 18-24 months (if there are tenant changes) your property be given a thorough professional clean, as tenants are only required to leave the property ‘domestically clean’.
Forwarding of Mail
It is recommended that use be made of the Royal Mail’s redirection service as it would not be the tenant’s responsibility to forward mail.
Instruction Manuals
Instructions should be provided for tenants as to the operating procedure for the central heating system, washing machine, alarms, etc. We recommend that photocopies of manuals be left for the tenant and the originals be held by you, in case they get misplaced between tenants. If instructions are not provided it may be necessary to call out a contractor and any costs incurred would be the responsibility of the landlord. Information regarding bin collections should also be provided.
Back to top- What are my legal responsibilities as a landlord?
There is a lot of detail surrounding your legal responsibilities as a landlord. We would recommend speaking to our specialist lettings team for further information and details on the points raised below as what follows is only a brief guide.
Safety
Gas Safety (Installation and Use) Regulations 1997 (as amended).
All gas appliances, installation, pipe work and flues must be checked for safety at intervals of not more than twelve months by a registered Gas Safe engineer and a safety certificate issued. Records must be kept of the dates of inspections for a period of no less than two years.
Health and Safety at Work 1974 – Electrical Equipment (Safety) Regulations 1994
All plugs and sockets etc. to electrical installations and appliances must be safe. To ensure compliance with the regulations and IEE guidelines all electrical appliances should be tested and inspected annually by a competent engineer (preferably NICEIC approved). The fixed wiring installation should be inspected and tested at least every 5 years.
Consumer Protection Act 1987 & Landlord Tenant Act 1985, Section 11 – Furniture and Furnishings.
The furniture and furnishings (Fire) (Safety) Regulations 1988 (amended 1989, 1993 and 1996) provide that specified items supplied must meet minimum fire resistant standards. These do not apply to antique furniture or furniture made prior to 1950. All items must be checked for compliance with non-compliant items removed. In practice, most (but not all) items which comply must have a suitable permanent label attached.
Consumer Protection Act 1987 and Housing Order 1997 – General Product Safety The General Product Safety Regulations 1994
Any product must be safe which would include both the structure of the building and its contents. Recommended action is to check for obvious danger signs – leading walls, broken glass, sharp edges etc. and also to leave operating manuals or other written instruction about high risk items, such as hot surfaces, electric lawnmowers etc. for the tenant.
Smoke Alarms
All properties built since June 1992 must have mains powered smoke detector alarms. Although there is no legislation requiring smoke alarms to be fitted in older properties, it is considered that the common law ‘duty of care’ means that landlords could be liable should a fire cause injury or damage where smoke alarms are not fitted. We therefore strongly recommend that you fit at least one alarm on each floor in the hall and landing areas.
Legal Responsibilities
Energy Performance Certificate (EPC)
Properties marketed for rent in Northern Ireland are required by law to have an Energy Performance Certificate, which gives your property a rating on a scale of A – G according to how energy efficient it is. It also contains advice on how to cut carbon emissions and fuel bills and as a company we can organise this certificate for you.
Fitness Inspections
Article 36 of the Private Tenancies (Northern Ireland) Order 2006 states that a district council shall, if an application under Article 33 is made, inspect a house let under a private tenancy with a view to deciding if it meets the fitness standard for human habitation. Certain properties do not require a fitness inspection but as a general rule any property that pre dates 1945 will require a certificate. If you appoint Pinkerton Murray to manage the property for you we will arrange obtaining the Certificate of Fitness from the council. If any works need to be carried out on the property following the report we will arrange and oversee these though the cost of such will need to be covered by you. The cost levied by the local council for the application for a Certificate of Fitness (currently £50.00) will also need to be paid by you.
Rates
The Land & Valuations Agency (LVA), under The Rates (Northern Ireland) Order 2006, hold the owner/landlord liable for the payment of council rates if the capital value for the property does not exceed £150,000, despite of what the tenancy agreement states as The Rates (Northern Ireland) Order would supersede a tenancy agreement. We would therefore recommend that you include the annual rates payment into the rental amount to ensure that these are paid to the LVA. If you choose to do so the LVA will give a discount on the annual rates bill for the property.
Back to top- Safety
Gas Safety (Installation and Use) Regulations 1997
All gas appliances, installation, pipe work and flues must be checked for safety at intervals of not more than twelve months by a registered Gas Safe engineer and a safety certificate issued. Records must be kept of the dates of inspections for a period of no less than two years.
Health and Safety at Work 1974 – Electrical Equipment (Safety) Regulations 1994
All plugs and sockets etc. to electrical installations and appliances must be safe. To ensure compliance with the regulations and IEE guidelines all electrical appliances should be tested and inspected annually by a competent engineer (preferably NICEIC approved). The fixed wiring installation should be inspected and tested at least every 5 years.
Consumer Protection Act 1987 & Landlord Tenant Act 1985, Section 11 – Furniture and Furnishings.
The furniture and furnishings (Fire) (Safety) Regulations 1988 (amended 1989, 1993 and 1996) provide that specified items supplied must meet minimum fire resistant standards. These do not apply to antique furniture or furniture made prior to 1950. All items must be checked for compliance with non-compliant items removed. In practice, most (but not all) items which comply must have a suitable permanent label attached.
Consumer Protection Act 1987 and Housing Order 1997 – General Product Safety The General Product Safety Regulations 1994
Any product must be safe which would include both the structure of the building and its contents. Recommended action is to check for obvious danger signs – leading walls, broken glass, sharp edges etc. and also to leave operating manuals or other written instruction about high risk items, such as hot surfaces, electric lawnmowers etc. for the tenant.
Smoke Alarms
All properties built since June 1992 must have mains powered smoke detector alarms. Although there is no legislation requiring smoke alarms to be fitted in older properties, it is considered that the common law ‘duty of care’ means that landlords could be liable should a fire cause injury or damage where smoke alarms are not fitted. We therefore strongly recommend that you fit at least one alarm on each floor in the hall and landing areas.
Back to top- Legal Responsibilities
Energy Performance Certificate (EPC)
Properties marketed for rent in Northern Ireland are required by law to have an Energy Performance Certificate, which gives your property a rating on a scale of A – G according to how energy efficient it is. It also contains advice on how to cut carbon emissions and fuel bills and as a company we can organise this certificate for you.
Fitness Inspections
Article 36 of the Private Tenancies (Northern Ireland) Order 2006 states that a district council shall, if an application under Article 33 is made, inspect a house let under a private tenancy with a view to deciding if it meets the fitness standard for human habitation. Certain properties do not require a fitness inspection but as a general rule any property that pre dates 1945 will require a certificate. If you appoint Pinkerton Murray to manage the property for you we will arrange obtaining the Certificate of Fitness from the council. If any works need to be carried out on the property following the report we will arrange and oversee these though the cost of such will need to be covered by you. The cost levied by the local council for the application for a Certificate of Fitness (currently £50.00) will also need to be paid by you.
Back to top- Rates
The Land & Valuations Agency (LVA), under The Rates (Northern Ireland) Order 2006, hold the owner/landlord liable for the payment of council rates if the capital value for the property does not exceed £150,000, despite of what the tenancy agreement states as The Rates (Northern Ireland) Order would supersede a tenancy agreement. We would therefore recommend that you include the annual rates payment into the rental amount to ensure that these are paid to the LVA. If you choose to do so the LVA will give a discount on the annual rates bill for the property.
Back to top- Do I have to pay rates if my property is vacant?
Yes. Rates are payable on all properties whether they are occupied or not.
Back to top- Do I have to inform Inland Revenue and pay tax?
The short answer is yes. How much will vary on whether you are classed as a UK resident or not. The taxable amount is calculated after a series of deductions. The Inland Revenue publish a series of leaflets which will give you more information about this (leaflets IR150 and IR87). You can find these on the Inland Revenue website or contact the Inland Revenue directly for more details. Legislation compels us to calculate and prepare yearly income details on behalf of all landlords for submission to the Inland Revenue which are sent in June of every year.
UK residents
If you are a UK resident you will receive the usual personal allowances applicable to your circumstances, which may be offset against all your taxable income. Income from letting a property is subject to income tax at the basic rate on profit less any deductible expenses or outgoings e.g. rates, insurance, wear and tear on furnishings etc. Of course our fees are deductible too!
Non UK residents
If you are planning to live abroad while your property is tenanted you are likely to be classified as non-resident for tax purposes. In such circumstances Pinkerton Murray will be held liable for taxes due on income arising from rents received. To comply with this requirement Pinkerton Murray must retain tax at the basic rate from rents received. You can apply to the Inland Revenue to receive gross rental income by completing a Non Resident Landlords Scheme Form (NRL1). This also applies to members of the Foreign Commonwealth Office and Armed Forces.
Back to top