Landlords FAQ’s

Theres a lot to consider when letting a property, below are a list of frequently asked questions:

Do I have to tell my mortgage company?

Yes, your mortgage lender needs to give you permission before you can let your property, and they may impose special conditions. If you are buying a property with the intention of letting it out, you may be able to obtain a buy to let mortgage.

Do I have to pay tax on my earning?

Income from property rental is treated by the Inland Revenue as unearned income, and as such is liable to standard rates of inflation. They are, however, many allowances and expenses that can be used to offset the taxation, details can be obtained directly from the Inland Revenue or your accountant. You should be aware that self-assessment taxation which came into effect on 6^th April 1996 requires landlords to retain all records of income and expenses regarding their property.

What type of cover do I need?

Landlords are responsible for buildings and contents insurance: the tenant is responsible for his/her own possessions. We will require a copy of your insurance to be held on file.

Why should I use a managing agent?

Choosing a fully managed service allows you to create a professional distance between you and the tenancy, any issues that occur will be dealt with on your behalf and you will be kept updated.

What happens to my tenant’s deposit?

Landlords and letting agents are required to register tenants’ deposits with an approved Tenancy Deposit Scheme. At Minerva we use the Custodial tenancy deposit scheme, the deposit is registered and held throughout the tenancy, they are there to protect the tenants money and help resolve any disputes at the end of the tenancy.

What is an Inventory?

An inventory is a detailed list of the contents and condition of your property taken before the tenant moves in. It is important that if there is a dispute over damage at the end of the tenancy, you have proof of the original condition of the property and its contents

What are a landlord’s repair obligations?

Almost all the repairs that are required from a landlord are those that relate to the property, such as its structure and exterior, sinks, baths, pipes, gas appliances, ventilation and hot water. If the damage was caused by the tenant, then this is usually cause for them to pay for the repairs themselves. Otherwise, you can discuss with them at the end of the tenancy if there are repairs that need to come out of the deposit.

What regulations do I need to know about as a landlord?

The main certificates you will require are Gas, EPC and Electrical Installation Condition report, these can be arranged using our recommended contractors

Do landlords pay council tax?

It is the responsibility of the tenant to pay council tax for the property. However, if there is an empty period the landlord is liable for this charge.

Why do I need an EPC?

An Energy Performance Certificate, or EPC for short, is a report detailing the energy efficiency of a property. It gives a property an energy efficiency rating from A (most efficient) to G (least efficient) and is valid for 10 years.

All landlords are required to purchase an EPC for a property before they let it and, from 1st April 2018, the property must have a minimum rating of E on its EPC. It will be unlawful to rent a property which breaches this requirement with a penalty of up to £4,000.

What is Right to Rent?

The Right to Rent scheme, which helps to make sure that people renting property in the UK have a legal right to be here, was rolled out across England in February 2016.