1  King Street

Carmarthen

SA31 1BA

Tel 01267 222301

Email  office@cranepropertymanagement.co.uk

Finding the right tenant for a property is fundamental. We start by establishing with yourself a criteria for the sort of person you wish to occupy your property. We then match this to prospective tenants who must pay an initial holding deposit, provide us with references and pass a Credit Check. Only then will we then proceed with a tenancy.

Private Tenants

(Tenants in full time employment and who are able to meet the rental commitment in full). When dealing with private tenants we take references usually from their employer, previous Landlord or a financial reference. Each tenant is credit checked to make sure thy do not have a history of bad debt. Payments are due every calendar month, in advance starting from the commencement of the lease..

Housing Benefits Tenants

(Tenants who are eligible for help with paying their rent, this could be because they do not work or are on low income). Again we take two or more references and carry out a credit check. If a tenant fails to match our referencing requirements we ask for a Guarantor who must own a house or have proof of professional employment.

It is normal to experience a delay of around ten to twelve weeks, in Housing Benefit Payments, this is the time it takes the council to process all the paperwork (although rent is then usually backdated to when the tenant moved into the property). We liase with housing benefits on a regular basis to ensure the claim is processed speedily as possible.

Once payments have been set-up the council usually pay four weekly, in arrears (this means we will receive thirteen payments in a twelve month period, as opposed to twelve payments if paid on a calendar monthly basis).

There is normally a shortfall between the rent that Housing Benefit pay and the amount of rent the property can achieve. Crane Property Management will keep an account to ensure that the tenant makes regular shortfall payments.

An award for housing benefit is only given for a short period (usually twelve months) towards the end of the claim the tenant is sent a new claim form, when this happens you may experience a slight delay in payments. This occurs as the council has to re-evaluate the tenants income.

Crane Property Management undertakes to help as much as possible with the extensive form filling and process that is needed for a prospective tenant to apply for Housing Benefit.

We liase with the Rent Officer on a regular basis and advise prospective housing benefit Tenants of the approximate amount of Housing Benefit that they can expect if they have no other household income. As many families are now in receipt of family working tax credits the rate of rent assessed is not always the rate that they receive.

Rent

When we initially assess a property we indicate what we believe to be a realistic market value rent. Prospective tenants usually accept this figure but there may need to be some room for negotiation. For tenants in receipt of housing benefits the final rent allowance paid by the council will depend upon an independent assessment by a rent officer. This rent assessment is not the value of the market rent attainable but what the Rent Officer estimates is rent level needed for the individual circumstances. For example a couple with no children would only be allowed the rate of a one bedroom flat. A couple with two children under 12 years may only be allowed the rate for a two bedroom flat.

Deposits (Bond)

We request a deposit (bond) on all tenancies, usually the equivalent of one months rent. Some tenants in receipt of housing benefits may be eligible for a bond from the local council the bond is a guarantee of payment (up to the amount agreed with the Bond Board at the start of the tenancy) should there be an outstanding claim against the tenant.

Deposits are held to help ensure the tenant looks after the property and as a safeguard against unpaid rent. It is refundable at the end of a tenancy only after the tenant has vacated the property and providing the house and their account is in order.

Commencement Of Tenancy

The tenancy commences on the date shown in the lease. Prior to the tenant moving in we will carry out an inventory of the property, with a description of its condition. We then send a copy of this inventory to the tenant to sign and ensure agreement.

Whilst compiling the inventory we also take the meter readings, these readings are then passed on to the appropriate companies, at the same time we also inform the council of the change in tenancy. We cannot inform British Telecom of the change in tenancy. This must be done by the user of the service, consequently you must ensure BT know you no longer require a service at the property. The tenants then have to contact BT should they wish to be re-connected.

INVENTORY AND CONDITION

We compile the inventory and condition report at the start and end of every tenancy. We do not charge extra or travelling expenses for this service. It is included in our management commission fee. Always check on this if pricing with other agencies.

Tenancies

Most new tenancies commence with a maximum six month assured shorthold contract. If you do not want to renew the tenancy you must inform us immediately, as we will then make arrangements for the statutory notice to be served not later than the rent due date at the fourth month of the tenancy.

You can choose to renew the tenancy but in most cases you can allow the tenancy to continue into what is legally known as a periodic tenancy, whereby the tenant stays in the property (under the terms of the original contract). Should they wish to leave however they only need to give one months notice If you require possession of the property, a landlord is required to give two month clear notice.

Please note that once a section 21 notice has been served on the tenants, if the tenant refuses to leave, enforcement of this notice can only be enforced through the courts. Crane Property Management will advise on the steps to take to regain possession Serving the notice does not guarantee that the tenant will vacate the property on the agreed date.

PLEASE NOTE

Many Managing Agents insist that the Landlord and Tenant renew their contract thereby incurring another set of fees every six months. Crane Property Management prefer not to enforce these hidden extra charges. Please always check if you are pricing with other Agencies on their policy.

End Of Tenancy

Once a tenancy comes to an end we make arrangements to inspect the property again and take meter readings as well as obtaining details as to where the tenant is moving. The deposit is refundable to the tenant once we are convinced that everything is in order.

If for any reason there are any disputes with how the property has been left the first course of action is to give the tenant an opportunity to rectify the problem. If the tenant does not rectify the situation we can then make a deduction from the deposit (valid estimates must be obtained indicating the exact cost of repair). Failing agreement between the landlord and tenant, we will act as arbitrators. We will aim to resolve the disagreement as quickly and amicably as possible. Our decision is final, both parties must agree to by our judgement.

Inspections

We conduct regular inspections of all tenanted properties. These inspections serve numerous purposes, they allow us to visit the tenant in the property and ensure they are looking after it. We also check for signs that something may be wrong with the property, if something needs attention we can then inform you as soon as is practical helping to reduce the risk of the problem becoming worse and the cost escalating.

Repairs

Every property at some point will require maintenance work. If things go wrong and the tenant contacts us, we will try to resolve the problem as quickly as possible. However there are two important points to remember when it comes to repairs. Firstly, if a serious fault does occur (water burst/ flood) and we cannot contact you we can authorise a repair up to a cost equivalent of one months rent, authorisation for this is contained within the terms and conditions agreement. Secondly, once a property is tenanted you do have an obligation to ensure it is well maintained. Carrying out repairs quickly is often as important for you as it is for the tenant, after-all repair caught early enough can save you a lot of money. Remember tenants do have rights, tenants can contact the Environmental Health because repairs are not being attended to quickly, the ensuing ‘enforcement order’ could include extra repairs and significantly higher final bill. Work not done will be carried out by them and they will add a hefty additional charge on top of the repair bill. *”In the Landlord & Tenants Act 1985 under section 11, it is implied as a convenient in the tenancy agreement that the landlord is: (a) to keep in repair the structure and exterior of the dwelling (including it’s drains, gutters and external pipes). (b) to keep in repair and proper working order the installations in the dwelling, for sanction and for the supply of water, gas and electricity as well as those for space heating and heating water” *(journal for residential property professionals- July 1996, issue2, volume4)

Gas Appliances

It is a legal requirement that every gas appliance and gas central heating system has to be inspected on an annual basis, they have to meet strict conditions and a safety certificate must be issued. (This certificate or copy of if must be kept with our files). The person conducting the inspection MUST be CORGI registered and qualified to issue A LANDLORD’S GAS CERTIFICATE.

Crane Property Management recommends that all properties are put onto a gas service contract. This means that the gas appliances are insured for emergency call out and breakdowns.

Alarms

It is our recommendation that all properties should be fitted with at least two smoke alarms. While this is not a legal requirement failure to take adequate precautions (such as fitting smoke alarms) could lead to a landlord being prosecuted if something did happen. Smoke alarms are inexpensive and are easily fitted, they can and do save lives. Once installed these devices must be checked on a regular basis.

Furnishings

If any furniture is left in a property, then you as landlord have a duty to ensure it is maintained and (for electrical / mechanical equipment) repaired should it become faulty, provided of course this is not as a result of negligence or malicious damage by the tenant. Any soft furnishings (Chairs & beds etc.) that are left in the property must comply to fire regulations, and a label clearly stating so should be attached. If not then the furnishings must be removed from the property, they cannot be stored at the rented address. Crane Property Management will advise at the first property inspection.

Mortgages

If the property you wish to rent is subject to a mortgage then the mortgage lender should be informed that you intend to let the property. This should be done before a tenant moves into the property. Gaining permission from the building society usually depends upon the mortgage account not being in arrears. Some lenders do ask to see a copy of the lease which the tenant will be asked to sign, we will happily provide them with this. The lender may make a small charge to cover administration costs.
 

Insurance

As landlord you are still responsible for the building and accordingly the buildings insurance. Please note buildings insurance will not cover the costs of replacing or repairing carpets if they become damaged, it does however cover fixtures and fittings. If the property is furnished or part- furnished you may also wish to consider contents insurance. Please contact Duncan Phillips at Crane Property Management for further insurance advice at very competitive rates.

Tax

Income received from renting any property is subject to tax (we strongly recommend that you take advice from your accountant). Expenses incurred can be set against this liability as can the interest paid on the mortgage (if MIRAS is dropped or does not apply to the property). Overseas Landlords Up until April 1996 landlords who moved out of the United Kingdom had to have tax deducted by their agents. Now however a landlord can apply for an exemption certificate from the Inland Revenue (we can supply the application forms). If you are awarded exemption we can send all the rent money to yourself (a copy of the exemption certificate must be held by ourselves) without a deduction for tax.

Empty Property

The agreement you signed when the property was put on our books does not cover periods when the property is vacant. If you are concerned about the property and want us to manage it while it is empty you must inform us of this and we can make arrangements to do so (there will be an extra cost for this service).

Keys

We would normally require two sets of keys to the property, one will be handed to the tenant on occupation, the other will be retained in our office for emergencies.

Finally

If you do have any problems, feel free to contact us - we are here to help.