Can Tenants Keep Pets? 1

Your tenancy agreement will almost certainly exclude the Tenant from keeping pets of any description (cats and dogs are obvious, but even hamsters and caged birds, strictly speaking, are pets and should not therefore be kept).
Your agent should advise you WHEN THE OFFER IS FIRST MADE if the Tenant has or plans to keep a pet.

If you consent to a pet being kept at the property it is wise to include a reference to the specific animal in the tenancy agreement, you don't want to agree to a hamster being kept to subsequently discover the tenant has a pet donkey!

Ask the tenant's previous landlord to supply a reference on their pet.

Properties most likely to be pet friendly are houses, mews and those with direct access to outside space, often ground and garden level property.

In some cases it is possible to obtain a higher rent from a Tenant who can't bear to be parted from their pet dog or cat.

Insist on a specific clause obliging the tenant to have all soft furnishings professionally cleaned at the end of the tenancy

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What are the different types of property I can expect to find in London?

Conversion: Built originally as houses, complete with kitchens and servants downstairs, elegant reception rooms on the ground and first floors and bedrooms above. Converted into apartments steadily from the 1960s to the present day with standards ranging from the fabulous, with real architectural flair to the rather unimaginative. Quality has improved enormously over the past few years, with many conversions being totally refurbished with state of the art kitchens, bathrooms and fittings.
Well-planned and executed conversions, particularly those on the ground or first floor are among the most sought after in London. Large, elegant rooms with high ceilings, original cornicing and other features such as fireplaces mean that these properties command premium prices.

Purpose built block (PBB )
As the name suggests, blocks of flats (apartments) built as apartments and not converted from something else. They can offer a more "international style" of living. They range from the corn flake packet school of architecture to buildings by leading edge architects. In some cases, purpose built blocks will resemble and be indistinguishable from normal houses and conversions in the same street, developers have often maintained period facades, whilst building a totally new structure behind. Having been purpose built these properties offer greater functionalism than some others, often with lifts, porters or caretakers, underground or off street parking. This style of living offers convenience, practicality and security. Unsurprisingly, PBBs are popular with diplomatic personnel and tenants who travel extensively, spending extended periods away from home.

Mansion building, mansion flat?
Built as apartment buildings these are purpose built blocks constructed from the turn of the nineteenth century through to the 1930s. Rarely more than seven or eight storeys high and often red brick built. Typified by large airy rooms, interesting features such as cornicing, architraves and fireplaces, perhaps a cage style lift and often a resident porter or caretaker.

Mews house / mews flat (apartment)?
Located behind some of London's most prestigious houses, mews were built to house the horses and servants of a bygone era. Converted into fashionable homes they offer character with location. Like all converted property, standards vary from the superb to the uninspired. The best properties of this genre are among the most sought after in London, expect to pay a premium. Usually arranged over one to three floors, rooms can sometimes be smaller than in other converted property.

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Furniture removal / storage?

It pays to be flexible when dealing with tenants. Be prepared to accede to requests to add or remove small items of furniture from the property.

Local self store companies are ideal for normal everyday furniture and are extremely cost effective.

More valuable furniture may require specialist handling - this can be expensive. Be sure to get a quote from the contractor before signing an agreement with the tenant!

Properly stored furniture doesn't depreciate as quickly as "in use" furniture. Bear this in mind when doing your sums.

Remember - tenants pay for flexibility.

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What is an Assured Shorthold Tenancy Agreement?
This is the usual form of Tenancy Agreement between an individual Tenant or Tenants and a Landlord and can apply to most lets where the annual rent is less than £25,000 and the let is for a minimum of six months or less by mutual agreement. Under such an Agreement the Landlord cannot terminate the Agreement before the minimum six month term has expired (other than by mutual agreement) and must then give the Tenant no less than two month's formal notice of his desire to terminate the Agreement, unless of course, there has been some material breach of the Agreement by the Tenant. Usually the Tenancy Agreement will be for a term of one year less one day and at the outset both parties will agree when and under what circumstances the Agreement can be terminated during that Term.

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What is a company let?
This is an agreement between a Company (usually the actual Tenant's employer) and a Landlord. It is very common in London when the rent is being paid by the Tenant's employer under a relocation package. The agreement is subject to normal contract law.

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What is a common law tenancy agreement?
This is a Tenancy Agreement between an individual or individuals and a Landlord which is not an Assured Shorthold Tenacy Agreement

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What are the regulations relating to furniture fire safety?
In short, it is the landlord's statutory responsibility to ensure that foam filled furniture supplied in a rental property meets current fire safety legislation. All foam filled furniture MUST carry a fire safety label. In practise, furniture manufactured by a reputable firm after 1988 will comply with these regulations.

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What is a CORGI certificate / CORGI inspection?
All gas appliances in rented property must be inspected annually by a CORGI registered contractor to ensure compliance with statutory regulations concerning safety, especially with regard to carbon monoxide emissions (CO). Landlords or their managing agents must arrange an annual inspection and supply the tenant an up to date GAS SAFETY CERTIFICATE on demand. Use a reputable contractor, such as P and M Facilities Management Ltd. for this purpose.

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Must the property have a decent shower?
We have been telling landlords for many years now about the importance of power showers in rental property. Most have taken the message on board and have installed decent showers. Whenever we advise landlords on refurbishments power showers feature large in bathroom specifications.

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Who pays Council Tax?
On lets over 3 months, the TENANT.
Council Tax is a tax levied by the local authority. It is payable by the person permanently resident at the property. The amount of tax due is calculated on a sliding scale that reflects the property's value. The Council Tax Bands run alphabetically from A to H, with H being the highest.

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Who pays for the utilities (gas, electricity, water, Council Tax, telephone, cable TV etc)?
Lets of at least 3 months: The tenant will normally be expected to pay the following outgoings together with any standing charges made by the relevant utility supplier, which will normally be transferred into the tenants name at the start of the term. Gas, electricity, water rates, council tax, television licence (licences can be bought at any Post Office), cable TV charges and telephone.

Burglar alarm and fire alarm monitoring charges will normally be the responsibility of the tenant, however landlords will normally pay the cost of maintenance contracts relating to these systems.

Lets of less than 3 months: On short lets of less than three months the tenant will invariably pay all telephone charges although these should be at normal service provider rates. Generally telephone accounts would be in the tenant's name. All other utilities normally remain in the landlord's name, however many landlords levy a fixed utility charge on tenants to cover gas, electricity etc. which is in addition to the rent quoted.

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Who pays the building service charge and building insurance?
The landlord, always.It's your property - you pay it. Remember to factor in these charges when doing your sums

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Who pays for contents insurance?
Each party is responsible for insuring their own possessions. It is normally a condition of the tenancy agreement that the landlord maintains adequate contents insurance for his / her possessions in the property. Landlords should always check that their current policy covers let property.

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What about Tenant's Parking
Garages and off street parking spaces are valuable commodities in the London rental market. Don't include underground or off street spaces in the let unless your tenant specifically requires it. You may find that you can let these spaces independently.
Most local authorities offer a residents parking scheme whereby bona fide residents can park in designated sections on the public road. For the majority of residents, this proves a safe, convenient and cost effective option. These parking bays are (supposed to be) clearly marked. Contact details follow:

Royal Borough of Kensington and Chelsea
Parking Shop
19 - 27 Young Street
London W8 5EH T: 020 7937 7755

Cost: 6 months £40.00 12 months £70.00 (motorcycles £10.00/year)

London Borough of Hammersmith and Fulham
Old Town Hall
Fulham Road
London SW6 1ET T: 020 7371 5678

Cost: 6 months £28.00 12 months £50.00 (motorcycles £FREE)
Second car: 6 months £50.00 12 months £100.00

Westminster City Council
City Hall
64 Victoria Street
London SW1E 6QP T: 020 7823 4567

Cost: 12 months £90.00 £60.00 if under 1300cc engine capacity
(motorcycles: same charges apply)

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What is an inventory and schedule of condition? What is a check out report?
Once a tenant moves in to a property the landlord and tenant should both sign a copy of the inventory and a schedule of condition. An inventory is simply a list of items in the property, a schedule of condition is an objective report of the condition of those items and the general standard of cleaning and decoration. We always recommend the services of an independent inventory clerk for this purpose. This document forms part of the contract between the landlord and tenant. At the end of the tenancy a check out report is prepared by, ideally, the same inventory clerk. This process is indispensable when damages or losses (if any) are being determined at the end of the tenancy. Thus, if there are any deductions due from a tenant's deposit they can be agreed to allow the swift return of the tenant's deposit and any amounts due to the landlord.

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What is a deposit / Bond?
On signing the tenancy agreement as well as paying the first rent instalment in advance, the tenant will pay a deposit (bond) which is held by Chard in a separate client account and repayable to the tenant at the end of the tenancy, less any deductions due under the tenancy agreement (see also What is an inventory?). The amount of deposit collected is, as a rule, a minimum of six weeks rent equivalent.

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What is a letter of guarantee?
A letter of guarantee is a document, usually from a third party, guaranteeing to make rental payments and to indemnify the landlord against any default by the tenant. It is extremely rare for such a guarantee to either be required, or given. Most tenants are able to provide references to substantiate their suitability to rent a property, thus negating any need for such a document. An example of a letter of guarantee being appropriate may be a recent post graduate starting work and renting a property that appears slightly beyond his/her means where a parent is still paying an allowance. The guarantee is in no way a substitute for a deposit and is required in addition to the usual deposit.

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What is a letter of indemnity?
A number of large corporate tenants, mainly banks, will offer a letter of guarantee or indemnity in lieu of a deposit (bond). This practice has subsided in recent years and a fixed six week deposit is more common.

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How many viewings will be required to let my property?
There is no fixed answer to this question. In our view a market price is the rental figure that you can expect to achieve from a good quality tenant within 21 days.
If it's taking longer your yield will be severely compromised.

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What is the frequency of rent payments?
As a minimum rent is payable monthly in advance. Many corporate tenants prefer to make quarterly payments, although a number of both corporate and private tenants will pay quarterly, six monthly, annually or even bi annually in advance. Rent is most commonly paid either monthly or quarterly.

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Can Tenants smoke in the property? Can I insist on tenants who do not smoke?
Smoking has become contentious issue between landlords and tenants

We advise that landlords ask all tenants renting property to declare whether they will smoke in the property.

Landlords should retain the right to decline to let to a smoker.

If however a smoker has made a false declaration or allows smoking in the property a landlord may, in some circumstances have he right to make a claim from the tenants deposit at the end of the tenancy, taking into account extra cleaning and decoration costs. (see What is fair wear and tear?)

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What is fair wear and tear?
By definition a subjective concept. Simply put, fair wear and tear is the amount of damage or dilapidation that a reasonable person would expect to see in a property being used in a "tenant like manner" by the tenant(s) named on the tenancy agreement at the end of the tenancy. If the landlord has let to a single non smoker "fair wear and tear" will inevitably be less than where the property had been let to, for example, three people, all of whom were smokers. Because fair wear and tear is sometimes contentious we always recommend the services of AN INDEPENDENT INVENTORY COMPANY.

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Who looks after the garden?
Where a garden exists that is demised to the property, normally the tenant will responsible for maintaining the garden, lawn and plants. This also applies to pot plants and hanging baskets. Where a "high maintenance" garden exists we strongly recommend that landlords leave advice on maintaining the garden, or, in the case of high value property, insist that the Tenant retain a part time gardener. Some landlords will have a part time gardener already who would normally be kept on.
Where the property is an "owners home" a separate, pragmatic, arrangement is often made between landlord and tenant with regard to who takes care of garden maintenance and access for this purpose. IT IS ESSENTIAL THAT YOU LETTING AGENT IS MADE AWARE OF ANY ARRANGEMENTS SO THAT THE TENANCY AGREEMENT CAN BE AMENDED ACCORDINGLY.

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Who looks after the communal garden?
Many London properties have access to communal gardens, often in the form of well maintained garden squares, although some, particularly in W11, bear a closer resemblance to parks, both in shape and grandeur. The responsibility for maintaining the garden is usually met by a "garden committee" elected from local residents. Levies are made either through the building service charge (payable by the landlord) or through a separate garden levy made by the local authority and paid (by the tenant) as well as the Council Tax charge to the local authority.

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What is a licence to sub let? What is superior landlord consent to let?
Where a property is leasehold (as the majority of apartments and even many houses are), the lease ("Head Lease") will often contain several covenants relating to the letting of the property. In some cases it is only necessary for the leaseholder (the "landlord") to inform the freeholder ("superior landlord") of the name of the tenant. In many instances however "consent to sub let" must be obtained. The Head Lease may also contain some conditions concerning the type of tenancy that can be granted. Obtaining consent, in the form of a licence to sub let may involve the payment of an administration fee to the freeholder or the "managing agent", which must be submitted with a copy of the proposed tenancyagreement and references on the tenant / tenant company.

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What is a "Head Lease"?
Where a property is leasehold, there will be a head lease, between the landlord (lessee) and the freeholder (superior landlord). The head lease will contain covenants relevant to the tenant and a copy should be made available to the tenant should he / she request it. Insofar as the tenant is concerned the covenants deal with day to day living, for example, the taking out of rubbish, the keeping of pets and playing of amplified music late at night. The tenant should be made aware of these covenants as the tenancy agreement does contain a clause obliging the tenant to comply with the terms of the head lease.

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What about visitors and guests? Who is allowed to live in the property?
All individuals named on the tenancy agreement have the right to live and "peacefully enjoy" the property. Common sense dictates that tenants may have occasional friends and family stay over. Nevertheless only those mentioned on the agreement have the right to reside there. In the unlikely event that a tenant has more people staying at the property than provided for in the tenancy agreement the landlord would have good grounds for claiming an amount for wear beyond "fair wear and tear" at the end of the term. Under no circumstances can a tenant take in paid guests or lodgers.

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What are professional sharers?
Sometimes a group of usually, two three or four people will get together to rent a property collectively as an alternative to renting individually. Economically this can make good sense, instead of paying £250 for a small one bedroom apartment, two sharers might prefer to rent a smart two double bedroom apartment for £500 per week. The tenants are jointly and severally liable under the tenancy agreement.

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What references should your agent take up?
Employer's reference (confirming length of contract if relevant and salary details if relevant, otherwise the employers opinion of the applicant's ability to meet the rental commitment)

Bank reference / status enquiry (some banks may charge customers a fee for providing us with this information)

Character reference or previous landlord's reference.

Company lets:

For PLCs - a copy of the audited report and accounts

Private Limited Companies - a bank status enquiry and relevant trade references.

For all company lets we require confirmation that the person living at the property is a bona fide employee of the tenant company.

It may also be a good idea to reserve run a credit check through a recognised credit check agency.

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What about tax for landlords?
It is strongly recommended that you consult an accountant for professional specialist advice when preparing tax returns.
Broadly speaking all income generated from the letting of your property will be subject to UK income tax at the prevailing rate. Under present legislation, many costs directly associated with a furnished letting can be off set against the rental income for tax calculation purposes, these costs include:

Interest on loans secured against the property (BUT NOT CAPITAL REPAYMENTS)

Professional fees (letting agents fees, solicitor, accountant etc.)

10% per annum of the gross rental against depreciation (i.e. to cover fair wear and tear caused to the property during the letting)

Refurbishment costs (you are advised to seek specialist tax advice before embarking on refurbishments)

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What about tax and non resident landlords?
As a non resident landlord, even where the property owner is a company, tax is still due on the rent received, less allowances under current legislation (see What about tax for landlords?). Present legislation holds liable for the payment of tax and submission of tax returns the person or company who transfers rent received from residential lettings to the account (wherever held) of a non resident landlord. Your lettings agent must be FICO registered and therefore able to pay rent to you gross (i.e. without deduction of income tax) where they have received and the Inland Revenue processed an "Application to receive United Kingdom rental Income with no tax deducted". You then complete your income tax / corporation tax return as normal. Your local lettings agent should supply relevant paperwork to you and answer any questions you may have.
For more detailed information the Inland Revenue operate a helpline:
Phone: 0151 472 6208 and 6209 (+44 151 472 6208 and 6209 if outside UK)
Or: www.inlandrevenue.gov.uk/cnr contains useful information and further advice

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Do I need a managing agent for my property?
Generally speaking, we would advise that where the rent is in excess of £300pw or you have a corporate tenant, you instruct a managing agent. Fees are tax allowable and managed tenancies tend to be longer lasting than those where the landlord is personally involved.

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Who cleans the windows? Who sweeps the chimney?
In most conversions (see What is a conversion?) the tenant is responsible for arranging window cleaning , inside and out, usually every six weeks. In larger purpose built blocks the building's managing agents will normally arrange exterior cleaning. Something of an anachronism now, it is still the tenant's responsibility to arrange to sweeping of chimneys.

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What is a tenant's option to renew? Option to extend?
Most long term lets are for a period (term) of one year (in practice one year less one day). Many tenants, particularly those relocating from overseas for two and three year contracts will insist upon an option to be able to extend or renew the tenancy agreement, often for up to three years. Normally a tenant would be obliged to give the landlord a minimum of 60 days notice of his / her intention to renew (normally for a further one year term) and the rent would increase by an amount already agreed and contained in the original tenancy agreement. Industry norms are usually a minimum increase of 3% but otherwise in line with the annualised increase in the cost of living as measured by the retail price index.
Landlords should be aware that an option to renew for a second and third term is an essential pre condition of many large companies and banks when relocating senior personnel. This is especially relevant when letting an unfurnished property.

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Tell me about rent reviews?
A standard tenancy agreement is generally for one year (less one day). During the term the rent cannot be increased. Where a tenant has an option to renew contained in the original agreement there will be a formula for increasing the rent on the anniversary of the agreement, usually in line with the retail price index.

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What is a Tenant's break clause?
Simply a clause in the tenancy agreement whereby a tenant can terminate the tenancy agreement by giving the landlord (or his managing agent) a fixed period of notice (usually 30 or 60 days) of his intention to do so. The tenancy will then end at the end of the fixed notice period without penalty. In practice it is very uncommon for any notice to be given that would result in a guaranteed term of less than six to eight months, depending on market conditions. Tenants break clauses are most likely to be an issue for large companies and senior personnel with well defined relocation policies.

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Should an agent take their letting fee in advance?
Your agent should get paid WHEN YOU GET PAID. The agent then has a motivation to deal only with tenants who they believe are certain to pay in full and on time.

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What is buy to let?
Landlords have been buying property to let out for centuries. It has been popularised as a valid investment in recent years and has resulted in the steady growth in numbers of well presented property to let in all parts of the country.
Many mortgage lenders tailor schemes specifically for buy to let investors. Lenders look at several criteria when processing a loan application of most relevance are:

Loan to value - most lenders consider 70% loan to value as an upper limit, although some will consider more than this

Servicability - most lenders look for the rent to cover approximately 1.2 - 1.5 times the mortgage interest payable (not including capital repayments)

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Do I need to be a UK resident to borrow in order to buy to let a property?
No, however many lenders will put a lower ceiling on the loan to value ratio, often 50 - 60%.

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How can I be sure to get sound advice if I buy a property to let out?
Most sales agents will offer advice on buy to let property, generally they will have some sort of rental department on hand to offer "advice" on rental values. Bear in mind the sales agent acts for the vendor NOT THE INVESTOR. Stories abound of investors who have been promised unrealistically high yields from agents interested in "making that sale".

Always obtain independent advice from a local lettings specialist

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Do I need to be a UK resident to borrow in order to buy to let a property?
No, however many lenders will put a lower ceiling on the loan to value ratio, often 50 - 60%.

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Do I need to arrange a professional clean before my tenant moves in?
Generally speaking, yes. Tenants rightfully want and expect the property to be spotless at the start of the tenancy and the landlords rightfully want and expect their property to be returned in the same top condition. We can arrange professional cleaning for you with a reputable company.

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Do carpets need to be cleaned between tenants?
Depending on the length of the previous tenancy and the condition of the carpet we normally recommend a light steam / extraction clean between tenancies as a minimum. Obviously, in the case of very short term lettings of one or two months this may be unnecessary.

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Will I replacing my carpets with wood floors in my apartment make it easier to let?
Often, yes it will, sometimes it may not, and in some cases it might make it more difficult to let. Before spending any large sums of money "preparing" a property to let, take advice from your letting agent. Their local knowledge and experience of the rental market means they ought to be able to advise you on what works, if any, are of benefit in increasing the rental value and marketability of your property.

Remember the sales agent selling you the property is unlikely to tell you if you need to spend large sums of money to present the property for the rental market

Always take independent advice from a lettings professional, INDEPENDENT of the sales agent

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Should you pay for a lettings market appraisal / valuation on the property?
Appraisals are normally free of charge, especially if you are an existing client of the lettings company. If you are not be prepared to pay £50 - £150 approximately for a formal valuation. This fee is normally refunded in full from the agent's commission account when they let your property.

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What tips can you give that will help improve the rental value of my property and maximise rental yield?

First impressions:

"The overall impression a prospective tenant takes away from a viewing is only as good as the property's weakest feature."

Make sure the property is clean, well ventilated and smells fresh.
Clean the windows!

Make the beds (even if the property is vacant, made up beds look far better than linens left on the side with a bare mattress)

Leave doors from hallways propped open

Coffee smells good, but it can look good too. If you are in when we are showing your property, by all means say hello, but leave the viewing in the hands of the negotiator. You will do a far better job of selling your property to a prospective tenant pottering around with a magazine and a cup of coffee. If you feel the negotiator has missed a special feature when conducting the viewing, let the branch manager know later, we'll then be able to make sure all of our negotiators are aware.

When in doubt, fresh, neutral colours only for decoration, but do take advice from your local lettings company.

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I want to upgrade the property for maximum rental income, I can only afford to upgrade either the kitchen or bathroom, what should I do? (London Market)
In most properties, particularly the £200 to £700 per week market for one and two bedroom properties, a really good bathroom with a power shower scores higher than a new kitchen with most tenants. Senior executives might not always cook, but they all wash! And will expect a decent bathroom with a power shower.

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What is a premium let?
the entire rent for the term is paid in advance, usually for one, two or three years.

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What about letting to students?
Where a tenant does not have a regular source of income from investments or employment landlords will generally look for:

Guarantor: the guarantor must be permanently resident in the UK and able to supply a financial reference indicating his/her ability to meet the rental commitment.

Rent in advance: many landlords will expect to see substantial amounts of rent in advance, often three months but possibly for the entire term, particularly where there is no UK resident guarantor. Guarantees from non UK residents are generally not worth the paper they are written on.

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