Useful Information for 1st time Landlords

PROPERTY LETTINGS PROCESS

There is a significant amount of ever-changing legislation to consider when letting a property for the 1st time, and a range of services offered by letting agents to meet your needs. We have created this document to help provide 1st time landlords with an overview of the process, and things to consider.

Becoming a landlord can be a great long-term investment. As with any investment there is an element of risk due to changing property values, property maintenance/repairs, and tenants’ circumstances changing. For peace of mind some landlords prefer to take-out landlord insurance, to protect rental income should a tenant stop paying their rent (prices available on request).

Jump-Pad is focused on minimising risks for our property managed landlords. This includes providing pre-vetting viewing requests, comprehensive tenant vetting, signing an initial 6m tenancy agreement, creating a comprehensive property inventory completing regular property inspections, and managing maintenance requests, and rental payments.

Letting agents typically let properties using a Shorthold tenancy agreement with an initial rental period of 6month to 1 year, which can be renewed or automatically switch to a periodic tenancy where the tenant provides 1 month notice to leave, and the landlord provides 2 months’ termination notice. Jump-Pad always recommends starting with a 6month tenancy to ensure you are happy with the tenants, prior to committing to a longer period.

Checklist (legal requirement)

Electrical Inspection Condition Report (EICR) - as from July 2020 all new tenancy rental properties, must have had an EICR report with any remedial work completed. These reports last for a 5 year period.

Gas Safety certificate – All properties (with a Gas supply) require a new Gas Safety certificate every 12 months, and must be completed by a suitable qualified engineer. New tenants must be given a copy before they move in.

Energy Performance Certificate – It is a legal requirement that all rental properties must have a current EPC (valid for 10 years), a copy of which must be made available to potential tenants when viewing the property.

Smoke Alarms – Need to be fitted to each floor, if battery operated it must Landlords must make sure the alarms are in working order at the start of each new tenancy, and make clear within the tenancy agreement that it is the tenant’s responsibility to maintain thereafter.

Carbon Monoxide Detectors - A carbon monoxide alarm must be provided in any room where there is a Gas appliance (excluding a oven/hob), or where solid fuels can be burnt or oil heaters can be used.

DCLG How to rent guide – Must be provided by the landlord or agent to every tenant, prior to moving in.

Fire Safety – Where furniture is provided within a property. It is the Landlords responsibility to prove all items comply with the latest fire safety regulations. Best practice requires all furniture receipts to be retained, and all items fire resistant labels to be checked.

Right to Rent – It is the landlord/Agents legal obligation to check and have auditable proof of potential tenant’s right to live and work in the UK, and to ensure their processes are compliant with the latest HMRC regulations.

Tenancy Deposit Scheme – All deposits need to be lodged in a government approved custodial or insurance based deposit scheme, and details provided to the tenant within 30 days. Tenant deposits must not exceed 5 weeks rent.

Property standard of repair – landlords have an obligation to keep the property in a good state of repair and deal with health and safety issues quickly. This means that problems with the roof, chimneys, walls, guttering and drains are the responsibility of the landlord. Landlords are also responsible for keeping the equipment for supplying water, gas and electricity in safe working order.

Jump-Pad Lettings Services

Tenant Find Only Service

Create the property listing on Rightmove, On The Market, Website and Social Media.

Pre-qualify all applicants based on a criteria agreed with you to minimise risk.

Arrange viewings at the property with a subset of applicants, to meet with them and further assess their suitability for the property.

Collate information on interested potential tenants and discuss with you to agree the best tenants for your property.

Take a selected applicant through the referencing process including Credit checks (credit score/no CCJ’s IVA’s etc), Employment checks (employment contract status/earning as stated), Previous landlord checks

Create tenancy agreement, and collate/provide all legally required information such as EPC, Gas Safety Certificate, EICR electrical certificate, How to Rent Guide.

Please note. It is the landlords responsibility to create a property inventory, and to lodge the deposit within an approved scheme.

Cost for Tenant Find Only service

Tenant Find Only £600 inclusive, or when coupled with ongoing Property Management (detailed below) £360

Property Management Service

Lodge the tenant deposit within a government approved scheme DPS. (£40)

Create a comprehensive electronic property inventory with photographs of all rooms, fixture and fittings, flooring, appliances etc. Along with statements of condition. This is signed-off by yourself and the tenants as proof of the condition of the property when let.

Provide access to our Online Landlord and Tenant portal. Tenants have the ability to log any maintenance jobs via the system providing an audit trail of any issues raised, this gives you full visibility of requests raised, works completed and contractor invoices (approved by you). The portal also, provides you with information such as statements for accounting purposes, key dates for the tenancy and information regarding annual Gas safety renewals, 5yrly EICR inspections etc completed by Jump-Pad contractors.

Collection of rent. Jump-Pad collects monthly rent from your tenants and forwards to yourselves. Our SLA is to do this within two working days, although typically this is completed the same day as received.

Property inspections. Jump-Pad complete regular property inspections based on a schedule agreed with you. Typically, this starts at 3month intervals and then extends based on the length of tenancy and how the property is being maintained. Keeping the balance between ensuring the property is being maintained appropriately, and the tenants feeling like they aren’t being continually intruded upon.

Tenant check-Out. Confirm condition of property compared to when let, and any claims for damages (excluding fair wear and tear) or professional cleaning etc based on the inventory. Manage any deposit disputes through the Deposit Protection Service.