FAQs

Please find below some of the most commonly asked questions, so listed we have below are the answers we feel will assist you:-

1. Q: Where do I start?

Lettings to the uninitiated can be a bit of a legal minefield. There are a number of areas that you will need to address and it would therefore be sensible to contact a Local Lettings Agent (preferably one who is associated with a Trade Association such as ARLA) to guide you accordingly and get you started.

2. Q: How does a Letting Agent estimate the rental value of my property?

A professional Lettings Agency will need to visit your property before being able to carry out a realistic valuation. We will carry out a Competitive Market Analysis which will take into consideration
a) The popularity of an area
b) Proximity to Transport
c) General demand in your area
d) the rental price of other properties available
e) Rents achieved for other similar properties we have let recently and f) the decorative condition and layout of a property.

All of these factors will allow us to accurately assess the best marketing price.

3. Q: What if I think it is worth more?

Although valuing is not an exact science there are generally rental ceilings that Tenants will not go beyond for different types of properties. Any Lettings Agency that asks you what you think it is worth and then just agrees with you, is worth being wary of. You should try and establish:
a) How long the valuer has been a Letting Agent and
b) Does the agency have a number of prospective Tenants waiting for properties like yours.

However most agencies will initially try the Landlords own figure with a view to gently persuading them to be a little more realistic if the property fails to achieve any offers.

4. Q: (a) How can I find a suitable Tenant (b) How important is it and (c) How
long will it take?

(a) A good Letting Agent will impress on you how important the quality of your Tenant is. It will be possible to carry out a professional credit check to establish the Tenants’ credentials along with Employers and previous Landlords references (if applicable). This credit check is normally linked to an optional insurance policy, which can cover rent arrears and provide you with legal protection.

(b) A bad Tenant can cost an unfortunate Landlord thousands of pounds in legal fees, lost rent and dilapidations. It is therefore important that the Landlord satisfies themselves about the quality of a Tenant prior to them moving in. Unfortunately, it takes more time and the costs are considerably greater to get a Tenant out than it does to get them in.

(c) This obviously depends on the market and the rent being asked. Generally we suggest marketing at least three weeks prior to wanting the property occupied. The Lettings process, depending on the Agency’s internal procedures, should take no more than 7-10 days. The quality of the Tenant and the Legal/Safety aspects of the transaction are paramount, therefore we suggest being very wary of Agencies who insist that they can provide a Tenant who can move in within one or two days.

5. Q: How long is the Tenancy normally for?

There is no defined timescale as to how long a Tenancy should run but generally most parties agree to One Year. Some Landlords feel uncomfortable that if they commit for a lengthy period, they will have difficulty getting possession of their property back earlier, for a breach of the agreement by the Tenant or should their circumstances change. This is not the case. If the Tenant breaches the agreement, under the Housing Act 1988 (amended 1996), there are effective ways of concluding the Tenancy. As a further precaution, OUTLOOK inserts a six-month break clause into the Tenancy Agreement, which allows Landlords to end the agreement for any reason they see fit.

6. Q: What happens if the Tenant does not pay the rent and/or damages the
property?

Unfortunately, it can never be totally guaranteed that a Tenant will pay the rent. A professional Letting Agent will suggest a number of ways to protect you such as credit referencing, legal and rent protection insurance, contents insurance and taking a damage deposit. Ultimately if all else fails you will be entitled to seek the possession of your property and use your insurance to pay for the legal costs. As far as damage is concerned it is important to have a well prepared Inventory of the property and its contents. This should be signed prior to the Tenant taking occupation and will document the condition of the property at that point.

7. Q: What Guarantees do I have that I will get my property back at the end of
the Tenancy?

The Housing Act 1988 (amended 1996) largely remedied the problems of sitting Tenants. Yet it is still very important to use an Agency who has a well drafted Assured Shorthold Tenancy Agreement (See All Matters Legal – Page 4). Crucially this agreement will contain clauses that will allow you to take possession of your property at the end of the Tenancy.

8. Q: What safety requirements do I have to meet and am I obliged to carry
them out?

Under British Law you have a statutory duty to carry out safety checks to your property prior to a Tenant taking occupation. A knowledgeable Letting Agency will be able to provide assistance to you about a) The Gas Safety (Installation and Use) Regulations 1994 b) The Furniture and Furnishings (Fire) (Safety) Regulations 1988 (amended 1989 & 1993) c) The Electrical Equipment (Safety) Regulations 1994 and d) The General Product Safety Regulations 1994. Incidentally, the penalty for failing to comply with statutory safety legislation is a maximum fine of £5,000 and/or six months imprisonment for each offence. In the case of an injury or fatality resulting from non compliance, considerably harsher penalties apply. 

9. Q: Who should I seek permission from to let my property?

You will usually require the written authority from your Lender (if any) before a Tenancy is granted. In the case of a leasehold property permission is also usually required from the Freeholder. Furthermore you should check with your insurers that you have adequate cover for rented property.

10. Q: What is the Association of Residential Letting Agents (ARLA) ?

Anybody regardless of their industry experience, can start trading as an Estate /Letting Agent. As things stand Legislation allows anyone even with little or no qualifications, to immediately open for business. However, membership of ARLA (an independent body) will ensure that agents meet specific professional standards along with having to fulfil other strict criteria such as holding a) separate clients bank accounts for their clients monies and b)Professional Indemnity Insurance.