Frequently Asked Questions
 Choosing an agent to manage your property for you is a decision that should not be taken lightly. Below are listed the questions that we are asked regularly by new landlords, who are seeking a reputable managing agent.
But we prefer to talk to people so if you have any questions, even if they are listed below, please Contact Us and find out how we can help you to make the most of what you have.
Why should I use a managing agent, I'm an intelligent person, it can't be that difficult?
A trained professional will excel in their own profession but it doesn't make them an expert in other professions. After all most people go to a solicitor for legal advice, and a mechanic to get the car fixed. It must surely be most appropriate to use a specialist to handle the letting of something as valuable as a house or flat.
The Housing Act of 1988 gave landlords the ability to let their homes/properties with an absolute right of repossession. It also gave tenants security of tenure for pre-agreed periods. This is the reason buy to let has become such a popular over the last decade.
It all sounds very straight forward. However badly prepared tenancy agreements, lack of knowledge of the various Acts which regulate the rental of properties, lack of knowledge of the discussions which are taking place for the amendment of future Acts, poorly prepared inventories are just some of the pitfalls that a landlord could fall into.
By using the services of a reputable managing agent you can ensure that the legal aspects of renting your property are covered. You can also be assured that correct procedures are followed for the set up running and conclusion of tenancies.
At Maxine Lester Residential Lettings we aim to explain clearly, in jargon free language, what needs to be done to best protect your interests and make the most of what you have.
For an informal chat about your requirements and expectations please Contact Us.
What are the benefits of choosing a managing agent?
 For those working away from home, or unable to sell, the advantage of earning a regular income from your property is clear. And, of course, a home that is left unoccupied undoubtedly deteriorates much more quickly than one which is occupied.
For those trying to sell it is often possible to let whilst still keeping the property on the market. These days there are an increasing number of people who are buying property specifically to let - as an alternative to other forms of investment.
Please refer to our section Total Property Management Solution for more information on how Maxine Lester Residential Lettings can help you.
What should I expect for my money?
You should be looking for an agent that understands the local market so you receive the correct advice on what is needed to attract the best tenants and achieve premium rentals.
You should expect regular visits to your property to make sure the tenant is happy and more importantly what needs to be done to the property to keep it maintained in a proper fashion.
You should expect a 24 hour service offered to your tenant to make sure that emergencies are seen to so when your tenant has a problem at 10 in the evening its your agent they call and not you.
Basically you should expect the day to day hassle of maintaining your asset to be dealt with by the managing agent.
For an informal chat about your requirements and expectations please Contact Us.
Is it best to rent out my property furnished or unfurnished?
There is often little difference between the rent achieved whether a property is furnished or unfurnished. It is important to consider the marketability of each particular property. Some types of property are best unfurnished, others need to be furnished. Again this is where our expertise comes in.
What should be included?
 In an unfurnished property there are just a few basic items that should be included:
- Carpets and Curtains
- A Cooker
- Fridge/Freezer
- Washer/Dryer - this is optional but usually desirable
- Telephone handset - tenant to pay for re-connection of existing line
- Smoke and carbon monoxide detectors
- Basic gardening tools including a lawnmower (if required)
- Basic Cleaning equipment including a vacuum cleaner
Please note that we do not advise that landlords go out and purchase any, or all of these items - check with us first. Sometimes extra expense can be avoided because a tenant may not require a particular item.
Furnished
All of the above plus at least the very minimum that you yourself would need to live in the property. However we advise that any item of high value or sentimental value should not be included in the let. Also televisions and videos should not be left. We will be happy to provide a suggested list of contents.
One important thing to remember is that the landlord has a duty to ensure that everything included in the let is in safe, working order and he/she has a responsibility to replace or repair anything that fails to work, unless of course it is damaged by the tenant. Some items, such as washing machines, could be covered by breakdown insurance.
What about my mortgage do I need to tell anyone?
You should notify your lender that you wish to let your property and ask for written agreement from them. This is usually a very straightforward matter, unless you have had any problems such as arrears with your mortgage. Some may charge a small fee, and some may ask to see a copy of the Tenancy Agreement - needless to say ours will be acceptable. In nearly every case this is just a routine matter taking just a few days.
What about council tax and utility bills?
 The tenant is responsible for all of these from the commencement of the tenancy. Part of our service is to notify the Council, gas, water and electricity suppliers at the beginning an end of each tenancy - and we take meter readings where appropriate which are agreed with the tenants and forwarded to the appropriate company in good time.
Tenants are themselves legally obliged to register with the Council. If there are occasional periods when the property is empty the landlord is exempt from paying Council tax for up to six months if the property is unfurnished. If it is furnished then 50% of Council tax has to be paid by the landlord.
What do I need to do about insurance?
 The landlord is responsible for the buildings and MUST have cover. You should always notify your insurance company that the property is being let. Landlords are also strongly advised to insure their own contents - which in the case of unfurnished properties may be for a very small amount.
If you have satisfactory cover then apart from notifying your insurers there is often nothing more to be done. However if required we can arrange insurance which is specifically tailored for landlords. This may prove a more cost effective way of achieving cover. Please ask for our advice on this.
We are also able to offer insurance protection for loss of rent, or for legal costs involved in dealing with difficult tenants. The overwhelming majority of tenancies are problem free, but people's circumstances can change and give rise to problems.
In view of the relatively modest cost of rent indemnity and legal costs protection we advise all landlords to give serious consideration to taking insurance cover for the peace of mind it brings. Full details will be provided on request.
We can arrange insurances specifically designed for landlords:
- Buildings
- Contents
- Rent indemnity
- Legal costs
What about taxation how do I deal with this?
 Taxation is a very specialised subject and we would always advise you to take professional advice so that an expert can appraise your own particular circumstances.
It is, however, possible to make some general observations about taxation of rental income. All income you receive from letting property should be declared on your annual Tax Return and it is taxable.
But you can claim allowances to offset any tax liability for those costs directly, and legitimately, attributable to the business of letting you property, thus minimising any liability to pay tax.
Allowable deductions include:
- Your Agents letting and management fees
- Repair and maintenance of the property and contents (but not the cost of improvements).
- Ground rent and maintenance charges on a leasehold property
- Water and sewerage rates unless charged to the tenant
- A wear and tear allowance applicable to furnished property only, equal to 10% of the gross rent received (less council tax and water rates) or you can deduct the cost of replacement from the rental income in the relevant tax year. To qualify for the wear and tear allowance the property has to be furnished sufficiently with furniture proved for each room
- If you pay someone to assist with the work involved in letting the property the cost is allowable if you can prove that they are paid at local commercial rates and they report the income in their own tax return
- Council tax whilst the property is vacant
- Accountants fees
- Legal expenses but not those related to the purchase of the property
- Stamp duty on tenancy agreements
- Building and contents insurance and any insurance claim fees
- Mortgage interest on loans used to purchase the rented property or to fund improvements
- VAT on all charges where applicable
- Cost of service contracts for example boiler and washing machines
If you are planning to live abroad then further considerations apply. Unless an application is made, and accepted by the Revenue, then the agent has to withhold a certain percentage of the rental to allow for tax. It is possible to obtain exemption from this requirement.
If you have not found the answer to your questions please Contact Us.
Let yourself in
Back to top ^ |