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In order to safeguard your property and the
income you expect to derive from it, it is essential that your property
is managed on a regular basis. It is vital therefore to:
- Make a full inventory
- Carry out regular visits to the property
- Rectify problems promptly and efficiently
- Maintain and service appliances regularly
- Ensure outgoings such as insurance premiums and service charges
are paid promptly
- the tenant pays the rent by standing order
Letting out a property can be an anxious
time for a landlord. Whilst all landlords will have worries specific
to their own circumstances, there is a concern and fear common to
the majority - that the tenant may default on their rental payments.
Whilst a thorough referencing system will diminish the likelihood
of payment problems occurring, changes in circumstances do unfortunately
occur and rent arrears arise as a consequence. In the event of non-payment
of rent or other breaches of contract, landlords with tenancies
governed by the Housing Act 1988, as amended by the Housing Act
1996, can rely on statutory grounds for possession. In the case
of company tenancies or contractual agreements there are no mandatory
grounds and possession will only be granted at the discretion of
the Court.
The landlord is responsible for maintaining
the property and the supplied appliances eg, hot water system, white
goods etc. However, should the damage occur from the tenant’s
misuse then the tenant is liable for the costs incurred.
It is important to note that with new properties
under guarantee by a developer, the snagging problems that may arise
may not be addressed by the developer within a timetable expected
by a quality tenant.
It is quite standard for a renewal clause
to be contained within the Tenancy Agreement. The clause would usually
link any increase in rent to the Retail Price Index (RPI) and limit
it to a minimum and maximum percentage increase. Should a clause
not have been included then the landlord may seek to increase the
level of rent beyond these limits. However, to encourage a smooth
relationship between parties it is usual that increases are in line
with the RPI or at current market value. Adequate time should be
left for negotiations to ensure the necessary paperwork and notices
are completed. A Landlord should note that if there is an option
to renew, a break clause in favour of the landlord will not operate
until the final term.
It is more likely that Tenants will extend their
tenancy with Short Lets. A quarter of all Short Let tenancies extend
beyond their original tenancy, unless previously agreed. It is quite
standard for a renewal clause to be contained within the Tenancy
Agreement.
To ensure that no disputes arise at the end
of the tenancy over any damages and reimbursements, the landlord
must ensure that both at the commencement and termination of the
tenancy a full inventory report is carried out. Their report should
be the sole grounds for which any damages and reimbursement charges
are based. More than one quote should be obtained wherever possible
on which such charges should be based. Should agreement still not
be reached, the landlord and tenant may appoint an independent arbitrator.
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