10 Key Questions for Landlords: Practical Answers from Greater London Properties
At GLP
we believe in providing valuable, straightforward advice to all landlords. Our goal is to be a helpful resource, ensuring you are well-informed throughout your letting journey. Let's look at some key areas:
1. How do I accurately value my property for rent?
Setting the correct rental price is vital. Overpricing can lead to vacancies, while underpricing means lost income. A professional valuation from an experienced estate agent, such as Greater London Properties, considers current market trends, comparable properties in your area, and your property's specific features. We have a detailed, street-by-street understanding of London's 'villages' to ensure an accurate valuation.
2. Do I need to inform my mortgage lender that I'm letting out my property?
Yes, you must. Most residential mortgages include clauses that prevent letting the property without the lender's consent. Failing to inform them could breach your mortgage terms. You will likely need to switch to a 'buy-to-let' mortgage or obtain a 'consent to let' from your current lender. Always check your mortgage agreement and speak to your lender directly.
3. Why should I use an estate agent for letting, and what should I look for?
Using an estate agent, especially one with strong local knowledge and a proactive marketing approach can save you time and stress, and ensure compliance. Look for an agent who offers comprehensive marketing, thorough tenant referencing, and a personal, director-led service. We deliver strong customer service and results, with honesty and efficiency.
4. What are Tenancy Deposit Schemes (TDPs), and how do they work?
In the UK, if you take a deposit from a tenant, you must protect it in a government-approved Tenancy Deposit Scheme within 30 days of receipt. This is a legal requirement. The three schemes are: Deposit Protection Service (DPS), MyDeposits, and Tenancy Deposit Scheme (TDS). Each offers a free dispute resolution service if there is a disagreement at the end of the tenancy. Adhering to these regulations demonstrates accountability and authenticity.
5. What kind of tenant references should I obtain?
Thorough tenant referencing is essential. This should include income verification, previous landlord references, credit checks, and affordability assessments. At Greater London Properties, we have an in-house referencing team dedicated to conducting these checks meticulously, providing you with peace of mind and helping you find reliable tenants. You can find more information about this here.
6. What are my tax obligations as a landlord?
As a landlord, you need to declare your rental income to HMRC and pay income tax on any profits. You can usually deduct allowable expenses, such as agent fees, maintenance costs, and mortgage interest (though relief for mortgage interest is now restricted). It is always advisable to consult with a tax advisor to ensure compliance and optimise your tax position. You can read more about this here.
7. Who is responsible for Council Tax and TV Licence?
Generally, the tenant is responsible for paying Council Tax and the TV Licence for the property they are renting. However, if the property is vacant between tenancies, the landlord typically becomes responsible for Council Tax. It is important to clearly state these responsibilities in the tenancy agreement.
8. How much notice do I need to give before visiting the property?
Tenants have a right to 'quiet enjoyment' of their home. You must give at least 24 hours' written notice before visiting the property, and visits should be at a reasonable time. This respectful approach helps build trust and ensures a positive landlord-tenant relationship.
9. What about damages and landlord insurance?
Your tenant's deposit is there to cover damages beyond normal wear and tear. However, it is crucial to have comprehensive landlord insurance. This typically covers buildings and contents (your own items, not the tenant's), as well as public liability and loss of rent. It is an essential safeguard for your investment.
10. What's the process for ending a tenancy or removing a tenant?
The process for ending a tenancy or removing a tenant is undergoing significant changes with the Renters' Reform Bill. While the Bill is being finalised, it is important to be aware of proposed changes, such as the abolition of 'no-fault' Section 21 evictions and a move towards periodic tenancies. This means landlords will need to rely on Section 8 grounds for possession, which will be expanded. Seeking legal advice or using an experienced estate agent like Greater London Properties is highly recommended to ensure the process is handled correctly and legally, adapting to the evolving legislation.
At Greater London Properties, we are committed to making your landlord experience positive. Our values of being Accountable, Ambitious, Approachable, and Authentic guide everything we do. We are here to support you, offering expert advice and effective strategies to showcase your home at its absolute best.
Warm Regards