INTRODUCTION
About City Central
The management and letting of residential property can be complicated and involves many laws and regulations. It is important that landlords choose a management and letting agent that will deal professionally with their property. City Central offers a comprehensive, independent and personal service in the management and letting of residential property, and we are confident that we provide a quality service to our landlords.
We welcome any landlords who wish to visit our office to meet our staff and discuss our services.
Our Services to Landlords
We try to be as flexible as possible to cater for each individual landlord¿s needs. Our services include full management of your property for owners who do not wish to be involved in the day to day routines of managing their property, or who are unable to do so due to living abroad, a letting service, introducing and installing approved tenants to the property, and a simple tenant introduction service for landlords who wish to deal with the tenancy themselves. Our fees are competitive, with no hidden extras. (Further details of our services can be found in the accompanying information).
Letting Your Property
City Central is conveniently situated, opposite the General Post Office, with a prominent ground floor display. We advertise in the Bath Chronicle and the Bath Property Weekly and via the Internet on our own website and this, together with the corporate companies and relocation agents we regularly deal with, all means that our list of waiting tenants is constantly growing, allowing us to secure suitable tenants with the minimum of delay.
We consider it to be extremely important to take care when introducing tenants to properties. We always take comprehensive references on prospective tenants including credit search, bank references, previous landlord or lenders reference, character reference and employers¿ reference. We advise landlords of all prospective tenants and keep landlords regularly updated with our progress.
We will advise you as to the most suitable tenancy, both in type and term, for your situation, and we will deal with all legal documentation in setting up and administering the tenancy.
Looking After Your Property
City Central considers that every property is a valued possession, not simply a space to be filled, and we aim to ensure that each property is treated well. All managed properties are regularly inspected to ensure they are kept in the best condition possible, allowing for normal wear and tear. This service is also available for non-managed properties by special arrangement. Utilities and council tax are transferred into the tenant¿s name on your behalf. We will arrange for an inventory to be made up at your request if so desired. When tenants vacate the property, we will ensure that the property is left clean and tidy, with all relevant bills having been paid. Our management service also includes arranging general maintenance, dealing with any problems which may arise (for example if an appliance fails, or the heating system breaks down) in the most efficient and effective way possible and being able to offer out of hours maintenance cover for urgent problems.
We are Available to Help
We aim to provide a professional, efficient, personal and friendly service to all of our landlords. We are available to answer any questions you may have and give advice on all aspects of letting furnished or unfurnished property and will inspect your property, at no obligation to yourself, to advise on the likely rental income, methods of making the property more attractive to prospective tenants and any other relevant matters. Please contact our office for an appointment.
(* - These services are not included in our tenant introduction service)
SERVICES TO LANDLORDS
We provide a full management service, a letting only service and a tenant introduction service.
Full Management Service
· Advising as to likely rental income of the property
· Matching the property with our tenant enquiry database
· Showing the property to prospective tenants
· Widespread advertising and marketing of the property
· Tenant vetting and references
· Tenancy Agreement and legal documentation will be charged at £60 +VAT
· Liaison with mortgage companies/lenders/superior landlords
· Reading meters, arranging for final accounts to be settled and transferring names on all utilities
· Monthly rental collection
· Providing landlords with monthly itemised statements
· Arranging for a written or photo inventory (Additional charge applicable).
· Carrying out regular inspection visits
· Appliance breakdown/maintenance coverage
CHARGES: UK resident landlords: 11% + VAT Overseas resident landlords: 12% + VAT
Letting Service · Advising as to likely rental income for the property
· Matching the property with our tenant enquiry database
· Showing the property to prospective tenants
· Widespread advertising and marketing of the property
· Tenant vetting and references
· Tenancy Agreement and legal documentation will be charged at £60 +VAT
· Reading meters, arranging for final accounts to be settled and transferring names on all utilities
· Monthly rent collection
· Providing landlords with monthly itemised statements
· Arranging for a written and/or photo inventory (Additional charge applicable)
· Carrying out regular inspection visits
CHARGES: 10% + VAT
Tenant Introduction Service · Advising as to likely rental income for a property
· Matching the property with our tenant enquiry database
· Showing the property to prospective tenants
· Widespread advertising and marketing of the property
· Tenant vetting and referencing
· Arranging for a written and/or photo inventory (Additional charge applicable)
· Tenancy Agreement and legal documentation will be charged at £60 +VAT
CHARGES: 10% + VAT of first 6 months rental value subject to a minimum charge of £300 plus VAT.
GENERAL NOTES
SAFETY REGULATIONS :
Law obliges both landlords and agents, to make sure that rental properties are safe to be occupied. There are heavy penalties for non-compliance. Currently, the most important safety regulations include those which apply to all gas appliances and associated pipework and flues, low voltage electrical equipment, furniture and soft furnishings and thought should be given to the provision of smoke alarms. City Central can supply a detailed guide to the current safety regulations on request and can arrange for required safety checks to be carried out.
ENERGY PERFORMANCE CERTIFICATE (EPC):
Law also obliges landlords to have an EPC. This shows the official energy efficiency rating of a property. It also provides a rating for the building, showing its energy efficiency and its environmental impact on a scale from A-G (where A is the most efficient and G the least efficient), in graphical format. It also contains recommended ways to improve the building's energy performance. All properties in the UK that are rented will have to have an Energy Performance Certificate, in accordance with the European Energy Performance of Buildings Directive. City Central can supply a detailed guide to the current safety regulations on request and can arrange for required certificate to be carried out.
INSURANCE FOR LANDLORDS:
Insuring a rented property is very important, but often overlooked. Some insurance companies do not offer cover to properties which are rented (always check with your insurance company that cover is provided prior to letting). We can offer advice on most aspects of insurance concerning a rented property.
We offer suitable cover for landlords through the comprehensive range of Homelet products that are underwritten by Commercial Union Insurance. They can cover the following:
Landlords Legal Protection
Valuable insurance against loss of rental income, legal disputes with tenants, squatters and damage to property. Although such problems are rare, insurance will ensure peace of mind. Property must be let under an Assured Shorthold Tenancy, and the insurance can also cover company lets or lets where the rent is in excess of £25,000 per annum.
Landlords Contents Insurance
Covers landlords contents for unfurnished, part furnished or fully furnished properties, including those let to students.
Landlords Building Insurance
Comprehensive insurance designed for rented properties, which can be extended by optional limited contents cover.
TAX
This is a brief guide only to the income tax liability that landlords may have to pay on their lettings income. Our advice is always to seek professional advice from an accountant, the Inland Revenue or a financial advisor. You should keep a record of all your income and expenditure, as well as statements from your agent and receipts from contractors. In general, you will not have to pay any tax if the outgoings on the property exceed the rent received.
Income tax is payable on rent received from property that is let. Your individual tax position determines if you should pay any tax. All profit from your property being let is added to your existing income and an assessment made. If your income exceeds your personal tax allowance, then you will be liable for tax.
However, there is a list of things that are tax allowable i.e. items that you may deduct from the rental income which then reduce the tax burden. In general if these expenses are incurred in the normal course of renting out your property these items can be tax deductible. For example, these items can include agents¿ fees, repairs, maintenance, decorating, gardeners¿ fees, furniture and furnishings, white goods, insurance, wear and tear, mortgage and legal fees.
Note that you can claim an allowance for wear and tear for furnishings etc. which is calculated by taking 10% of the rental income for the year. Alternatively you can claim the full replacement costs; normally the allowance is simpler.
You may, in general, claim tax relief on interest payments relating to the loan used to purchase the property, where the property is let for a period excess of 26 weeks. If the let property was previously your home, it is probable that you would have been claiming MIRAS on the loan. For tax calculation purposes, the amount of the loan that is not covered by MIRAS may be set against your letting income. In some cases it may be beneficial to withdraw from MIRAS in order to claim higher rates of relief against tax.
OVERSEAS LANDLORDS
This section briefly describes how rents and taxation affect the overseas landlord. Again, we would advise that you seek professional advice from an accountant or the Tax Office.
All income on rented property is liable to Schedule A income tax. When a landlord resides abroad, the Inland Revenue will hold the agent responsible for the payment of any tax on the landlord¿s behalf. The Taxes Management Act requires letting agents to deduct 25% for tax at source unless there is an exemption certificate from the Inland Revenue under the new self-assessment rules. At the end of the tax year an assessment is made on the tax due. Any surplus is refunded to the landlord. There is very little flexibility to these rules and the Inland Revenue can lawfully demand the tax from the letting agent.
The rules for non-resident landlords are very complex. In general if you are abroad for longer than a certain term, you are considered non-resident. The only exceptions are for members of the armed forces, civil servants and people who, even though they are based abroad, are paid in the UK.
