Skye Lettingswww.skyelettings.co.uk

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Welcome to our

ResidentialLetting Guide

Welcome to Skye Lettings Portsmouth Ltd.

We are an independently owned and run business with

years of experience as residential letting agents, and pride

ourselves at being able to offer the highest standard of

service to all our landlords.

We understand that letting a property is a serious business,

whether you have a large portfolio or are letting your own

home for the first time. By choosing Skye Lettings Portsmouth

Ltd as your agent, you can relax in the knowledge that we

will be here every step of the way, ensuring that the process

of letting your home is as stress free as possible.

There is a high demand in the Portsmouth area for

good quality rental properties with the scope for a good

rental return and we continue to build relationships with

companies and organisations located in the area who have

both continual and on-going accommodation requirements

for their employees.

Your property is a major investment and it is important that

you are aware of your responsibilities as a landlord as well

as knowing the best way to optimise your investment. This

guide is designed to give you help and advice in this area

and explain the services we can offer you.

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ContentsTo Buy Or Not Buy? 4

Letting Service 5

Letting Service (Cont) 6

Safety Regulations 8

Service Level Summary 11

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To Buy Or Not Buy?

Whether this is your first buy to let investment, or

an addition to your existing portfolio, it is important

that you are buying the right property to suit your

requirements. At Skye Lettings, we have all the

expertise required to help you choose the right

type of property to suit your budget and personal

circumstances. We can advise you on location, local

demand and rental values to enable you to achieve

the most from your investment, as well as explaining

all the legal, financial and tax issues wherever

possible.

What next?We can provide all the information and advice you need about the next steps in letting your property. This can include any

of the following;

• Furnished or unfurnished?

• Decoration

• Presentation

When we come and visit the property for the first time, we will guide you through all the steps you need to take to maximise

the property’s rental potential.

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Letting Service

A - Tenant Find Service

RENTAL ASSESSMENT

A free rental assessment will be provided with quoted

rents, exclusive of all domestic services and council tax.

Once a market rent has been agreed, Skye Lettings will

begin a comprehensive local and national marketing

campaign to ensure your property reaches the biggest

possible audience. This is done by advertising on all major

internet property portals, such as Rightmove.co.uk and

Primelocation.com, as well as our own website

www.skyelettings.co.uk. We regularly utilise the local

print media, specifically and we make use of our database

which will identify suitable tenants on our waiting list. As

well as all these we regularly circulate property details to

local hospitals, universities, and our corporate client list.

VIEWINGS

Skye Lettings accompany all applicants to your property,

and we would recommend that you supply a spare set of

keys to allow us to gain access as and when required, to

ensure a fast and efficient service. For your reassurance,

all our keys are security tagged and locked away.

TENANTS

There is always an element of risk with letting a property,

but an experienced agent will know when to refuse

an applicant. Skye Lettings will always discuss your

particular needs in detail and strive to find a suitable

tenant. All tenants are fully vetted by our independent

referencing agency, and we usually receive a response

within 48 hours enabling us to confirm the tenant’s

suitability, quickly and efficiently.

The referencing, where applicable, includes;

• Employer Reference

• Previous Landlord/Letting Agent reference

• Credit search and score

• I.D check

• Guarantor if necessary

TENANTS CONDITION OF ENTRY

Following acceptable references for each tenant moving

into your property, tenants will be required to pay one

calendar months rent as deposit, and one months rent

in advance. We will arrange and coordinate the tenants

occupation of the property, including the preparation of

the Assured Shorthold Tenancy agreement, and serving

of the legal notices. We will also write to utility providers

and the local authority notifying them of the change in

occupancy. This is where our involvement will cease with

a Tenant Find Service.

For landlords, we offer three different levels for the letting and management of your property.

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Letting Service (Cont)

B – Fully Managed ServiceThis service has all the benefits of our Tenant Find Service,

but also includes all the following;

• Inventory and Schedule of Condition

• The Tenancy Deposit

• Rent Collection

• Safety Inspections

• Property Inspections and reports

• Repairs and Maintenance

• Safety Regulations

• Taxation

C – Fully Managed Plus ServiceThis service includes everything provided by our Tenant

Find Service and Fully Managed Service, but also includes

full Rent Guarantee and Legal Protection.

Our commitment is to pay the rent to you, even if the

tenant doesn’t. Plus, the legal cover ensures that any

costs involved in any possession orders are covered. This

option is worth considering if you want total peace of mind.

We’ll also advertise your property as a Premium Listing on

Rightmove to ensure that it stands out against any other

properties that come up in the search results.

INVENTORIES

Skye Lettings will prepare a full Inventory and Schedule

of Condition prior to any tenants taking possession of the

property. The tenants are required to review the document

in full, and sign it prior to moving in. The document is then

held on file until the tenants vacate, when Skye Lettings will

perform a check out inspection of the property and assess

any dilapidations. If any dilapidations are found, we will

always attempt to recover any associated costs from the

tenants deposit. Please note that “wear and tear” must be

taken into account when assessing dilapidations.

THE TENANCY DEPOSIT

The Tenancy Deposit Protection Scheme was made

legislation from the 6th April 2007, whereby any deposit

paid by a tenant after that date must be held in either a

custodial or insurance based scheme. Skye Lettings will

ensure your compliance as standard as part of our Fully

Managed Services.

Any Landlords using our Tenant Find Service must use a

custodial scheme, and pass any deposit paid by the tenant

to the scheme within 14 days of receipt. The landlord must

give the tenant the prescribed information (to be set out in

secondary legislation) about the scheme being used, also

within 14 days of receiving the deposit. More information

can be found at;

www.tenancy-deposit-schemes.co.uk

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RENT COLLECTION

Skye Lettings will receive and account for rental receipts

on a monthly basis, or an agreed period, and submit a

statement of income and expenditure to the landlord.

We will also credit net rental receipts into the landlord’s

nominated bank/building society account as soon as the

payment has cleared. Rent reminders are sent out as a

matter of course, and the landlord will be kept updated in

any event of non-payment.

Whilst every effort will be made by Skye Lettings to collect

the rent and ensure that the tenancy agreement is adhered

to, the landlord will be responsible to initiate and settle

costs of any legal action recommended by Skye Lettings,

should this prove necessary. For any landlords using our

Fully Managed Plus service, this service is included for you

as a matter of course.

SAFETY INSPECTIONS

Every year of our agreement with you, we will arrange

for our fully qualified engineers to carry out Gas Safety

inspections on your behalf which are required by law?

PROPERTY INSPECTIONS AND REPORTS

Skye Lettings will perform two interim inspections on the

property every year, to ascertain whether the tenants are

maintaining the property as per the terms of their contract,

and to check for any visible defects that may require

attention. We will send you a full report after each inspection

notifying of any actions that may be required.

REPAIRS AND MAINTENANCE

Our management and maintenance team is on hand to deal

with all aspects of any problems relating to repairs which

may be required on a day-to-day basis with your property.

All our tenants can also contact our out of hours response

team for any emergencies.

During the tenancy, we will attend to any minor repairs and

obtain estimates for more serious work. Where required,

we will always obtain your permission and authorisation

prior to the execution of work, except in the case of real

emergency. Any repair work that is required as a result

of negligence or mis-use by the tenant is payable by the

tenant. In all other cases, the landlord is responsible. We

advise all landlords to ensure that the tenant is furnished

with full instructions or manuals for all appliances, central

heating systems etc to avoid the risk of accidental mis-use

by the tenants.

All of our contractors are qualified and members of the

relevant bodies required by legislation. If you would like us

to use your own preferred contractor, we can facilitate this

but would require the contractor to supply us with copies of

their insurance and scheme membership.

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The landlord and/or his managing agent are responsible

for ensuring that the property meets safety standards with

regard to the gas installation, pipe work and appliances.

GAS SAFETY (INSTALLATION AND USE)

What does the law require of you?

As a landlord, you’re legally required to ensure that:

• Pipe work, appliances and flues provided for tenants

are maintained in a safe condition.

• An annual safety check is carried out on each appliance

and/or flue that you provide for tenants’ use.

• Maintenance and annual safety checks are always

carried out by a GAS SAFE registered installer

• You keep a record of each safety check for at least two

years.

• You issue a copy of the gas safety certificate to each

existing tenant within 28 days of the gas safety being

completed and to any new tenant before they move in.

• All gas equipment (including any appliance left by a

previous tenant) is safe or otherwise removed before

re-letting.

Failure to comply with these regulations can result in heavy

fines or even imprisonment, so it is vital that the safety

checks are done every year. Skye Lettings will undertake

these takes on the landlords behalf as part of our fully

managed service.

ENERGY PERFORMANCE CERTIFICATES

As from 1st October 2008 an Energy Performance

Certificate (EPC) has been required for a new tenancy which

must be given to an applicant on or before the first viewing.

Skye Lettings will be unable to market any property until we

are in receipt of the EPC which is valid for ten years. Skye

Lettings can arrange for the assessment to be carried on

your behalf if required.

THE ELECTRICAL EQUIPMENT (SAFETY) REGULATIONS 1994

In order to comply with the Consumer Protection Act,

landlords must ensure that the electrical installation at

a property and any electrical appliance (kettle, toaster,

washing machine, light fittings etc.) is safe and does not

present any danger to a user. To ensure compliance with

the act, a regular (yearly) inspection and testing report is

required.

All appliances supplied must have all the necessary

instruction books and warnings details, and we would

recommend that copies are left at the premises.

Although electrical tests are not yet compulsory (unlike

the Gas Safety Inspections), failure to comply with these

regulations may constitute a criminal offence under the

Consumer Protection Act 1987.

Skye Lettings have more information on the regulations if

requested.

Safety Regulations

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FURNITURE AND FURNISHINGS (FIRE) (SAFETY) REGULATIONS 1988 (AMENDED 1989 & 1993)

All upholstery and upholstered furniture and furnishings

(mattresses, scatter cushions, sofas, beds etc)

manufactured after 1950 are required to be fire resistant.

This regulation applies to all let properties.

Any furniture manufactured or re-

upholstered since 1950 cannot be

supplied to a tenant unless it has

been professionally re-upholstered

with conforming materials. Compliant

furniture will always carry a label indicating that it complies.

SMOKE ALARMS

All properties built since June 1992 must be fitted with

mains operated and battery linked smoke alarms on every

floor. There are no similar regulations for older properties,

but Skye Lettings would recommend that smoke alarms are

fitted to each floor of your property.

TAXATIONINCOME TAX

UK Resident landlords

If you are a landlord resident in the UK, your net income

from your investment property is subject to income tax. The

level of tax depends on your other income. If you are already

a higher rate taxpayer, tax will be payable at the higher rate.

The normal method of reporting your taxable income to the

HMRC is by a Self-Assessment Tax Return. The following

deductions can be made from your rental income to arrive

at the net income which is subject to tax:-

• Interest on mortgage (subject to conditions)

• Property repairs

• Letting and management commission

• Building insurance

• Ground rent

• Service charge

Communication with HMRC and tax returns are the

responsibility of the landlord and/or their accountant. Skye

Lettings do not withhold tax for landlords resident in the UK.

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NON UK RESIDENT LANDLORDS

The Non-Resident Landlords (NRL) scheme is for taxing the

UK rental income of persons whose “usual place of abode” is

outside the UK. If you are treated as a non-resident landlord

you still have to pay UK income tax on rental income from

UK property.

Landlords can apply for an exemption certificate from

HMRC, and must provide this to Skye Lettings as soon as it

is received. Without the exemption certificate, we are legally

obligated to deduct basic rate tax from rents received and

account to HMRC on a quarterly basis.

Further information for non-resident landlords and

exemption application forms are available online at

www.hmrc.gov.uk.

GENERAL INFORMATION

If the property you intend letting is mortgaged, you must

apply to your lender for permission first as you may be in

breach of your mortgage agreement if you don’t. It is also

advisable to check your insurance company are aware of

your intentions to let your property.

LEASEHOLD PROPERTIES

Should the property you intend letting be a leasehold

property, you may need to seek permission from the

freeholder prior to allowing tenants occupation. If you do

not seek permission, you may find yourself in breach of the

lease.

IN SAFE HANDS WITH SKYE LETTINGS

If you are thinking of letting your property, this brochure

emphasises the importance of getting the right professional

advice from the outset. We hope it has been informative

and helpful to you.

If you would like to discuss your property in more detail, why

not call and speak to us today, and see how Skye Lettings

can cater for all your property needs.

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Service Levels

• Tenant Find

• Fully Managed

• Fully Managed Plus

Level of Service Tenant Find Fully Managed Fully Managed Plus

Free Property Appraisal ✓ ✓ ✓Full Marketing Campaign ✓ ✓ ✓Accompanied Viewings ✓ ✓ ✓Full Reference and credit checks ✓ ✓ ✓Latest Assured Shorthold Tenancy ✓ ✓ ✓Legal Notices ✓ ✓ ✓Notify Utilities and Council Tax ✓ ✓ ✓Renewal of Tenancy ✓ ✓ ✓Tenancy Deposit Scheme ✗ ✓ ✓Property Inventory ✗ ✓ ✓Rent Collection ✗ ✓ ✓Monthly Management statement ✗ ✓ ✓Property Inspection Reports ✗ ✓ ✓Maintenance and Repair service ✗ ✓ ✓Compliance with Safety Regulations ✗ ✓ ✓Rent Guarantee and Legal cover ✗ ✗ ✓Premium Listing on Rightmove ✗ ✗ ✓

Service Level Set-up Fee Management Charge

Tenant Find

Fully Managed &

Fully Managed Plus &

Service Level Summary

Office 2, The Big Yellow, 8-9 Rodney Road, Southsea, PO4 8BF

02392 812800 Portsmouth@skyelettings.co.uk www.skyelettings.co.uk