For any first time landlord, the prospect of letting a property can be daunting. To help ease any concerns that you may harbour before we meet, we have put together a list of frequently asked questions from new landlords.
I Have A Property To Let, Do I Need Permission?
You will need permission from your mortgage provider (if there is an outstanding loan on the property), the freeholder (if the property is leasehold) and your insurer (as you made need letting specific insurance). If you own a large house arranged over three or more floors you may also need to consider multiple occupancy (HMO) licensing via your local authority.
Failure to comply with the above may result in your property being repossessed, a heavy fine being imposed or a custodial sentence.
What Costs Can I Expect To Let My Property?
Fees charged by Butler & Stag are clearly listed within our Terms of Business (view here), available upon request as well as included within our valuation pack. When letting your property, you need to consider the following costs;
- Butler & Stag offer four different letting services with varying costs. They include; Let Only, Rent Collection , Full Management and Short Let. Our fees are charged via a percentage (%) plus VAT of the total contractual rental income.
- Energy Performance Certificate (EPC) - All properties marketed for sale or let within the EU require an EPC by law. They are valid for 10 years and cost approximate £75 plus VAT. The EPC provides consumers with information to the properties energy efficiency and environmental impact, with ratings of A-G.' A' being the most efficient end of the scale. Butler & Stag can arrange an EPC for you through one of our recommended specialists.
- Gas Safety Certificate - If the property has gas, by law a safety inspection of the boiler and gas appliances must take place on an annual basis by a registered Gas Safe contractor. Butler & Stag can arrange this on your behalf with an average cost of £80.00.
- Inventory & Check In Report - Depending on the size of your property, costs vary with increases based on additional bedrooms. Typically charges are; Studios - £130.00 plus VAT, 1-2 bedroom properties £175.00 with each additional bedroom charged at £25 plus VAT. Please remember the tenants pay for the check out.
- Professional Clean - This is generally requested by most new tenants before move in. Its is worth remembering that once you have paid for the first professional clean, tenants will pay for an additional professional clean at the end of the tenancy, leaving the property ready for the next tenants. Prices range from £185.00 plus VAT for a one bedroom flat to £325.00 plus VAT for a four bedroom house.
NB. Butler & Stag's fees are charged as a flat percentage to our landlords. To register security deposits £25.00 plus VAT. There are no further add ons for additional administration fees.
What Is The Tenancy Deposit Protection Scheme?
Security deposits paid by tenants as part of a Assured Shorthold Tenancy (AST) must be protected by a recognised deposit scheme within 30 days of receipt. Butler & Stag will collect the deposit on your behalf and can register it free of charge with our chosen scheme The Deposit Protection Scheme (DPS).
Do I Need To Present For Viewings?
Butler & Stag will accompany each viewing. If you prefer to be at home whist viewings take place this is fine, please be aware that the majority of tenants are more comfortable viewing whilst the landlord is out.
Will I Receive Feedback?
Out lettings consultants are trained to provide 24 hours feedback following each viewing. You can generally expect a call/email the following morning once they have had a chance to speak to each tenant. All feedback will be honest and constructive.
Can I Meet The Tenants Before They Move In?
We are more than happy to facilitate a meeting. This can be arranged via a second/third viewing at the property or in our offices.
When Will I Receive My Rent?
If Butler & Stag are instructed on a Rent Collection or Management service, rent will be forwarded to you immediately upon receipt. Our bank accounts are reconciled twice daily. Monthly and year end statements will accompany all rental payments ensuring and deductions and related costs are made clear.
How Much Deposit Is Taken From Tenants?
Generally a minimum of six weeks rent. This can be increased for properties containing valuable furnishings or when pets are involved in the tenancy.
What Happens At Renewal Stage?
We have it covered. Butler & Stag will contact the tenants and yourself when there are two months of the tenancy remaining. We will firstly ensure that the tenants are happy to stay and that you want them to stay. Our lettings manager will advise you on recent market activity and potential to increase the rent. Once all parties are in agreement we will draw up a new tenancy agreement finalising the new term. Butler & Stag's fees are charged on a percentage (%) plus VAT for this service at a 2% plus VAT discount on the previous years percentage.
If the tenants want to leave, the property will be remarketed immediately to ensure new tenants are found and there in no void in the tenancy.