You have decided to rent out a property and naturally you are really keen to get a tenant in as quickly as possible but in your eagerness, don’t overlook the following as failing to do so could cost you a lot of money. Maddisons Residential, the award winning Estate and Letting Agency based in Tunbridge Wells has compiled the following list to help you avoid any mistakes.
Failing To Protect The Tenancy Deposit
Once you have collected a deposit from your tenant, the monies must be protected in a tenancy deposit scheme, approved by the Government. You have 30 days from the date that you take the deposit to protect it and if you don’t, you have broken the law.
If you forget to protect the deposit, your rights to evict a tenant are denied and your tenant will be in his rights to bring a court claim against you for up to 3 times the sum of the deposit because their legal rights have been denied. You also have to serve the prescribed information on the tenants within 30 days.
Failing To Use A Regulated Agent
It is important to use a regulated letting agent, as you need an agent that will adhere to a strict code of conduct. Check out their credentials, as it’s imperative that the letting agent is a member of The Property Ombudsman (TPO). It also means that you usually receive a better standard of service and if you don’t, you can register a complaint, which will be investigated in-house for you at no charge.
The TPO scheme has been providing an alternative dispute resolution service since 1990 and is a government-approved scheme.
Not Reading The Letting Agent Contract Thoroughly
Reading contracts is something that most people hate doing. However, it’s essential that you read and understand the terms of the agreement that you are signing. Ensure that the contract isn’t full of hidden penalties and fees and unexpected tenancy renewal fees.
Make sure that the agreement is clearly laid out and is easy to understand. If you are uncertain of something, ask the agent to explain it and if they are reluctant, perhaps warning bells should be ringing. Some agents supply explanatory literature.
After reading, it should be clear:
- What the agent is doing for you
- What they expect you to do
- How the relationship will continue forward
- What the agents fees are
- How they are going to pay you
- How the agreement can be terminated
If you are happy with all of the above, you are now in a position to sign the document.
Not Providing A Professional Tenancy Agreement
A handshake agreement simply isn’t enough and opens you up to a multitude of risks and disputes with your tenants. Even if you are letting to a friend or somebody you know, difficulties or problems can occur and having a professional tenancy agreement is the best way to protect your property and manage your tenants.
The tenancy agreement will set out not only your tenant’s obligations and the limitations of their rights but also your obligations as a landlord and your rights. It will also define the start and finish dates of the tenancy, how much rent is to be paid and when, the deposit and method of payment.
Not Getting Specialist Landlord Insurance
Your standard home insurance will not cover your property if it is rented out. You do require specific landlord insurance so that your property is fully covered. A landlord insurance policy usually includes buildings insurance, landlord’s contents insurance and landlord liability cover. You can add extra cover to include accidental property damage and lost rental income/rental default cover.
What To Do Next
Maddisons Residential is based in Tunbridge Wells and is selling and renting out properties throughout Kent and Sussex. The agency is a member of The Property Ombudsman (TPO) and we take pride in helping our landlords get the best possible tenants and also ensure that you as a landlord fully understand the contract that you are signing. We will remind you about protecting the tenancy deposit, and can help you with drawing up a professional tenancy agreement and getting the best rates for landlord insurance.
Please call us on 01892 514100 if you are looking to let your property.
