Both experienced and new landlords alike, can sometimes feel overwhelmed by all of the information needed in order to be compliant and let you property safely. Below is an overview of the steps we will take together. If you need more detail or guidance on any aspect, just contact us, we’re here to help you and ensure you have a positive experience in renting out your property.
A valuation is the first step to letting your property, if your property is priced too high or too low you may find yourself faced with long empty periods or not getting the rent your property deserves. We know the areas your properties are based in and the intricacies of seasonal demand, enabling our team to give honest, impartial advice.
This valuation is about understanding your requirements and discussing your property. For this reason, you will receive a personalised Valuation Report at the end of our visit, giving you the information you need to make an informed decision. We source price comparisons from many sources, looking at similar properties to yours, we look at our potential contract holders and let you know about any we think would be suitable. We believe in building a relationship on trust and openness, so are as transparent as possible with new landlords about what to expect as a Pinnacle landlord.
As well as discussing your potential rental income we will also discuss:
- Our Fees
- What are our terms
- Safety regulations
- HMO and landlord licensing issues / standards.
- Any improvements that can help.
- Type of contract holders whom you would consider.
- Furnished or Unfurnished? (depending on the area and type of contract holders that the property will mostly attract)
- Discuss which service you would prefer.
- What are the benefits of using Pinnacles award winning Property Management Service.
- How many prospective contract holders do we have on our books?
- How long we think it will take to rent
- Inspections (Managed only)
- Maintenance preferences (Managed only)
- Building insurance
- Tax issues (including Non-Resident Landlord)
- Standard occupation law
- Any special conditions to add to the standard occupation.
How we let your property
At Pinnacle Letting Agents we have been leading the way in generating interest from prospective contract holders for many years. In addition to advertising your property in our shop windows, on property portals and through this website, we also use a number of strategies and one off events to generate interest at targeted groups.
Once a suitable contract holder(s) have been found, we ensure all our contract holders provide copies of an ID and complete an application for the property which asks for a range of information such as; previous address', landlord or agent details, employer details and even a guarantor, we then carry out a credit check and employer and previous landlord check. Not only does this ensure that the contract holder is who they say they are, it also makes sure they can pay the amount of rent they have committed to paying and that they haven't defaulted on their rent before. We will also credit check a guarantor so if a contract holder defaults on their rent the person who they have said will cover it can!
Legislation to be aware of
Rent Smart Wales - The Welsh Government introduced Rent Smart Wales on the 23rd of November 2015 to increase management standards for both landlords and contract holders while also improving knowledge and understanding in the sector.
All landlords who let properties in Wales will need to register their details with Cardiff Council who is the licensing authority for Wales. Letting agents and landlords who manage properties and undertake regular tasks related to the properties, will need to obtain a licence from Cardiff Council. In order to do this you will be checked to ensure you are a “fit and proper person” to manage properties and will require approved training to do so.
You must agree to register with Rent Smart Wales and comply with all requirements set out by them under the Housing (Wales) Act 2014. If you do not comply with these requirements and fail to register within a 12 week period of grace, it is a condition of our licence that we pass your details to them, which in turn, may lead to enforcement action.
If you undertake any day to day management of your property you will need to obtain a licence. To get a licence you will need to:
- Obtain a licence from Cardiff Council's licensing scheme and the licence will need to be renewed every 5 years.
- Complete approved training which will require you to be a “fit and proper person” and will require you to comply and adhere to a landlord code of practice.
All landlords have to register their details and their rental properties, to do this you must complete the following:
- Register yourself on the Rent Smart Wales website.
- Pay a fee, this will need to be renewed every 5 years.
- Keep property and personal information up to date and logged correctly.
- Failure to comply could result in prosecutions, fixed penalty notices, rent stopping orders, rent repayment orders, and restrictions on terminating standard occupations.
- Even if you use a licensed agent you will still need to be registered.
If you are unable to obtain a landlord licence or would rather not go through the process you will need to instruct a licensed letting agent to manage the property on your behalf.
For further information, please follow the link below:
EPC - All properties will require an EPC before they are marketed and will need to meet a minimum EPC grade. Please follow the link for more information on your duties and responsibilities as a landlord.
Safety Certificates - All landlords are required to ensure their properties are safe and meet all current safety standards. The links below will take you through the current guidelines.
Gas - https://www.hse.gov.uk/gas/landlords/
Electrical - Landlords have to provide a copy of the electrical safety report to their contract holders, and to their local authority if requested.
A House of Multiple Occupation (HMO) is a property occupied by at least three persons who are not members of the same family. If you have 3 or more people who are not related living in a property of 3 or more storey’s you must apply for a mandatory HMO licence. This includes a typical two-storey terraced house if it has a loft conversion. For more information please contact the local council of where your property is located.
Capital Gains Tax
As a landlord, if you ever decide to sell your rental property, you will need to pay Capital Gains Tax. Capital Gains tax is charged on the accumulated value of an asset. If you decide to sell a property then you will be charged for any increase in the value that has occurred. Under the current rules you don’t pay capital gains tax when you sell your home, however you do pay when you sell a property that isn’t your home. Basically as a landlord if you sell your home you won’t pay capital gains tax, but if you sell a property that you rent out you will.
For example if you sell a rental property for £250,000 and you bought it for £200,000, you would owe capital gains tax on the £50,000 you made. The amount of tax depends on the current HMRC limits and the other income you may have. Please consult the current HMRR guidelines for the most up to date information.
Renting Homes (Wales) Act 2016
From 1st December 2022, the Renting Homes (Wales) Act 2016 will come into force. This Act contains some of the most significant changes to legislation in the rental market for many years. We have written a blog which can be viewed here, which outlines the key elements of the Act that you need to be made aware of. There is a strong emphasis on compliance and we will work with you every step of the way to ensure you are meeting all of your obligations as a landlord.
What to do next
If you would like Pinnacle to let your property at any of our branches please follow the steps below and we will be happy to find you contract holders.
- Call and speak to a member of our team
- Complete the Letting Valuation Form
- Supply a set of keys
- Supply details of your deposit scheme (Contract Holder find service only)
- Provide us with a Gas Safety Certificate and ensure that the electrics are safe
- All rented properties must have an Energy Performance Certificate
- If your property is a licensable HMO, a copy of the licence will be required
- Provide proof of property ownership to us.
If you're new to being a landlord we understand there are a lot of things you need to remember and do before you are able to rent out your property and all this can be pretty overwhelming. At Pinnacle we want to make this experience as stress free as possible so have a quick checklist of things to to before renting-out a property.
Managed & Guaranteed Income Service
Signing up to Pinnacle's managed service will help reduce the amount of extra work you need to do to rent out your property. We will organise a lot of the more complicated tasks. For example, we will:
- Arrange an Energy Performance Certificate
- Confirm if HMO (House of Multiple Occupancy) licence is required
- Organise a gas safety certificate
- Arrange for electrical and PAT certificates
- Set a date for the standard occupation to start
However there are still a few things you will need to do:
- If you have a mortgage, ensure you have their permission to let
- If you are an overseas landlord, apply for an exemption certificate from the Inland Revenue
- Ensure building insurance includes landlord liability cover
- Provide Pinnacle with a full set of keys and a set for each contract holder
- Take meter readings on last day of residence
- Close utility accounts and inform them of your new contract holder’s details
- Redirect your post
- Leave instructions for any appliances at the property
- Ensure property is clean and in a good standard
If you choose to manage your property yourself and would only like us to find you new contract holders that's not a problem at all. In addition to the items above, you will also need to consider;
- Arrange to meet the contract holders to gain entry to the property.
- Provide an in-depth inventory and schedule of condition (you'll need to include photographs) - you and your contract holders will need to sign this and keep a copy each. (Must be done within 14 days)
- You must register their deposit and inform contract holders where this is being held.
- Provide the contract holder written procedures telling them whom to contact if there is an emergency or maintenance issues.
- Ensure all safety certificates are updated.
- Issue your contract holders a section 21 notice to end the standard occupation (2 x months notice)
- Remember to tell us at least a month in advance to re-advertise the property.
- Arrange closing inspections with contract holders and notify both contract holders and the deposit scheme of any deductions from the deposit.
- Prepare property for next contract holders.
For more information please call 02920 640200 or get in touch here.