Page 11 - John Payne Letting Guide

RENTAL INCOME
RENT & LEGAL PROTECTION
No matter how well prospective tenants are vetted,
there is always the risk that a tenant will prove to be unsatisfactory, sometimes due to unforeseen changes
in their own circumstances. Whilst court proceedings can be taken to enforce the terms of the tenancy agreement this is often expensive, and it is unlikely that you will be able to recover the full costs involved from the tenant. We strongly recommend that you consider opting for our Platinum service which includes legal protection to guard against the costs involved. This also protects the rental income if the tenant stops paying, subject to conditions.
PROPERTY FILE
John Payne Estate Agents are always looking at ways to give our landlords the best possible service and using the latest software we can allow landlords access to their property details by giving them their own login via ‘Property File’ if they choose. This gives our clients the ability to track payments, statements and invoices and this also allows the landlord to follow maintenance jobs as they happen.
AND TAXATION
As a landlord, you are responsible for your own tax assessment on rent received. Below is some basic guidance on taxation matters relevant to landlords; however we would always recommend you seek independent financial advice from an accountant on tax matters.
INCOME TAX
Rental income is liable to tax, although a number of expenditure items can be offset against rental received. You would also need to pay Class 2 National Insurance if the work you do counts as running a property business.
OVERSEAS LANDLORDS
Under the Non-resident Landlord (NRL) Scheme, your lettings agent will need to deduct tax from the rental income and pay the tax directly to HM Revenue
& Customs. If you choose not to use a lettings agent to collect rent, then your tenant will be legally responsible for collecting and paying the tax to HMRC. Alternatively, landlords living overseas can apply for approval to receive rental income with no tax deducted. Full details of the NRL Scheme are available from HMRC.
END OF TENANCY CHECKS
TENANCY RENEWALS,
At the end of a tenancy the Tenant should ensure the property is in a good, clean condition before the keys
are returned. We will carry out a final inspection referring to the inventory carried out at the start of the tenancy. Assuming there are no issues and all paperwork is completed, the landlord should return the tenant’s deposit. This is all included as part of our Gold & Platinum Service. If there are discrepancies with the way the property has been returned our dedicated property management staff will guide you through the process
of recovering any costs from the tenant. Without their specific agreement this may have to be referred to
the tenancy deposit protection scheme adjudicator.
RE-MARKETING
No landlord wants a vacant property. If a tenancy
is not renewed, we offer landlords a fresh property appraisal and remarketing service to find a new tenant.
REVIEWS AND NOTICES
For Gold & Platinum clients we will handle all tenancy renewals, including rental reviews, for you. If you decide to increase the rent we will issue the relevant notice informing your tenants. If you wish to end a tenancy, we will serve notice to your tenants in line with all legal process and timing requirements and manage all the end of tenancy administration.
If you require the property back at the end of this period, notice must be served at least two months before the expiry date (but not in the first four months).
AND DEPOSIT RETURNS
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