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To furnish or not to furnish?
While funishing a property can be expensive, for some properties it’s worthwhile as stylish furniture will maximise your residential investment. Most smaller properties such as studios and one bedroom apartments are let furnished but there is a significant demand for larger unfurnished flats and houses. Best to get advice from O'Sullivan before spending a lot of money on furniture. The cost of making good the wear and tear on furnishings is a tax allowable expense.
Furniture in rental properties, such as sofas, cushions, mattresses and pillows, must meet certain standards of fire resistance by law, unless manufactured before 1950, so bear this in mind if you do decide to furnish your property.
Most furniture made now will comply and since 1990 everything has to have a label saying so. If there’s no label or it has been removed, contact the manufacturer. Penalties are high so don’t be tempted to buy cheap second-hand furniture if you can’t check whether it complies.
Should you decide to furnish your property, why not visit our online furniture shop at
www.osullivanfurnishings.co.uk.Provide information for tenants
It’s good practice to leave a folder of information at the property for tenants. This might include:
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details of rubbish collection days, nearest schools, shops or leisure centres
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photocopies of manuals/instructions for appliances
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information about the heating system/boiler
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useful and emergency contact numbers for you/managing agent and plumber/boiler/electrician etc.
How to keep good tenants
Good tenants can be hard to find so once you’ve got them it’s certainly a wise idea to do what you can to keep them. The first rule for landlords is to be prepared. Make sure the property is in a good condition before you start renting it out to prevent breakdowns – you’ll lose tenants if things are always going wrong. If something does, it’s important to deal with it quickly and efficiently. Have regular tradespeople you can rely on.
When tenants turn bad
If tenants or their visitors behave in an anti-social way – for example, causing a nuisance or annoyance or using premises for illegal or immoral purposes – a landlord may take steps to stop them by obtaining a High Court or county court injunction, and use this as a grounds for eviction.
A landlord may be able to evict also if a tenant or visitor is convicted of an arrestable offence near his or her property. But remember 95% of tenants are respectable people who will pay the rent and look after your property.
Landlord's responsibilities
The landlord is normally responsible for the structure and exterior of the property. Gas appliances must have annual safety checks by a Council for Registered Gas Installers (CORGI) registered installer. You must be keep records of all checks and give copies to your tenant.
There are no requirements to carry out annual safety checks on electrical equipment but you must make sure it’s safe. For more information about safety regulations and the law surrounding letting a property contact Local Government or the Citizens’ Advice Bureau.
Taxing issues for Landlords
At present, income from let property is treated as investment income. Certain expenses, such as management and maintenance costs, can be offset against income for tax purposes. The interest on any loan associated with the property is also normally allowable. Capital gains tax, less allowances, is normally payable on the sale of the property.
Insurance
A landlord is responsible for insuring the property and all the items in it that do not belong to the tenant. The tenant is responsible for insuring his or her own possessions. Insurance premiums will be higher for a let property than for an owner-occupied property. If you are an owner-occupier planning to let your own home, your policy may be invalidated if you let without informing your insurers. Insurance may also be taken out for non-payment of rent and for legal costs. Need landlord insurance? Visit Direct Line for Business to get a quote.
