The below checklist will help you to ensure that you have got everything in order and are fully prepared to let your property;
Confirm details and proof of identification of all owners
It is important for Mundys to receive confirmation that all property owners consent to the letting of a property. Before being able to market your property we will require proof of ownership, signed Terms of Business and photographic identification in accordance with money laundering legislation.
If you have a mortgage on your property you should ensure that you obtain consent from your lender prior to the letting of your property. Failure to obtain consent from your lender may breach the terms and conditions of your mortgage.
A Valid Energy Performance Certificate (EPC)
A valid Energy Performance Certificate is required for the marketing of your property in accordance with legislation. An EPC provides information on the energy efficiency of a building, giving the building an energy rating from A (the most efficient) to G (the least efficient). It also makes recommendations on how a building’s energy use and carbon dioxide emissions could be reduced. Mundys can help you to organise an EPC if you do not have one in place and will also produce floor plans for the marketing of your property. Simply advise our Valuer that you require an EPC and they will organise this for you.
Check Taxation Obligations
As a Landlord you are required to pay tax on the income that you receive, but the taxation level may vary depending upon your circumstances. If you are going to be living overseas whilst your property is let, you will need to register as a ‘Non-Resident Landlord’.
The Non-Resident Landlord scheme operates for rental income paid on or after 6 April 1996 and replaces the old rules under the Taxes Management Act 1970. If you rent your property through an agent the agent is required to deduct tax from your rental income (currently at a rate of 20%), unless written notification to the contrary is received from the Inland Revenue in the form of an Approval Certificate.
An approval certificate will allow you to receive all rental income due without deductions to cover tax liabilities and you can apply for this by completing an NRL1 form which Mundys can provide for you.
More information relating to taxation is available via the Inland Revenue or contact our Lettings team on 01522 556099 or via email.
Confirm Building Insurance
It is the Landlord’s responsibility to ensure that the property and any contents are appropriately insured. You should make your existing insurance provider aware that you will be letting your property and your insurance should include comprehensive 3rd Party Liability and Occupier Risks & Public Liability cover. A copy of your insurance certificate and policy schedule should be provided to the agent and Tenant in accordance with a Tenancy Agreement.
Obtain a HMO License
On 6th April 2006 licensing of Houses in Multiple Occupation (HMO) came into force. The legislation applies to shared houses and requires Landlords to have a HMO License dependent on the property type and its occupation.
Most commonly a HMO is required where a building or part of a building is set over three floors, in which five or more people live and for which rent is paid. HMO licenses can also be required on a discretionary basis if let on a shared basis, with two or more households and occupants using as their main residence or required for a building converted into and consisting of self-contained flats if not compliant with the 1991 Building Regulations.
Install Smoke Detectors and Co2 Alarms
To ensure that your property is ready for the tenant to occupy it is recommended that you should install smoke detectors and carbon monoxide alarms for the safety of the tenant.