Lettings Services

Lettings Services
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Introduction
Chestertons has one of the largest and most successful lettings departments
in London and we know how difficult and time-consuming being a landlord
can be regardless of whether you have one property or a portfolio.
It is with this understanding that we have developed a comprehensive range of services for
landlords that allows them to enjoy the benefits of their investments without worry or hassle.
From sourcing a suitable property to arranging the deposit release, we can help our landlords
through every single step of the lettings process. Our landlord services are explained in detail
over the following pages.
As well as serving our clients, we also care for our tenants and have included a section on ‘Landlord
Safety Obligations’, which sets out exactly what is required of you by law as a landlord. Please be
aware that legislation around the lettings industry is constantly changing and the best way to
stay abreast of the changing laws is to work with a professional ARLA-qualified lettings team.
Providing Excellence,
Protection and Peace of Mind
ARLA and ARMA membership
Chestertons is a member of both ARLA and ARMA, the professional
bodies that regulate residential letting and managing agents and has
one of the most qualified lettings departments in the country, meaning
that our clients get the best service and the best advice every time.
Contents
Providing Excellence........................................................................................................................................01
Let and Rent Collect .......................................................................................................................................02
Property Management..................................................................................................................................03
PRIME...................................................................................................................................................................05
Corporate and Short Lets..............................................................................................................................07
Refurbishment..................................................................................................................................................08
Renewals.............................................................................................................................................................10
Landlord Safety Obligations........................................................................................................................12
Guide to tax legislation.................................................................................................................................16
ARLA is the professional and regulatory body for
letting agents in the UK, set up in 1981 to promote
standards across the lettings market. Licensed
ARLA members, like Chestertons, must adhere to
the ARLA Code of Practice and commit to always
operating at the correct standard.
ARMA is the leading trade association for
residential managing agents, formed to
promote high standards of leasehold
management and professionalism by
providing professional managing agents
with advice, training and guidance.
Only by working with a registered member
of ARLA like Chestertons will landlords be
properly protected:
As a member, Chestertons’ clients can have
peace of mind that we always work to the
standards and code of conduct as set by ARMA.
–– A
ll client money is completely protected,
including rents and deposits
Chestertons is also a member of two
independent ombudsman schemes:
The Property Ombudsman and
Ombudsman Services: Property. We adhere
to The Property Ombudsman Code
of Practice for residential letting agents.
–– O
ur qualified teams are required to keep
up-to-date with any changes in legislation
and industry issues, meaning that we can offer
professional advice to our clients and ensure
that they are made aware and protected
against any changes in legislation
–– W
e make every effort to source the best
quality tenants for your property who will
be comprehensively referenced
Only by working with a registered
member of ARLA like Chestertons
will landlords be properly protected
Let and Rent Collect
Chestertons’ network of offices deliver a high level of service to both
landlords and tenants.
Our significant investment in targeted marketing, along with our strong
relationships with Relocation Agents and Corporate bodies, helps us to
source a wide selection of professional tenants.
The Let and Rent Collect service is designed for landlords who are experienced in
dealing with the day to day management of their property and can attend to all
tenant demands throughout the tenancy.
Upon your instructions we will:
–– M
arket your property through all channels, including digital,
national and local advertising
Property Management
In London’s competitive rental market, the best tenants have increasingly
high standards and expect their home to be properly and expertly
managed in an efficient and effective manner.
Chestertons provides a comprehensive range of property management
services designed to maximise rental returns and save landlords time,
hassle and inconvenience.
Full Management
Chestertons’ Full Management service takes the day-to-day running of a property
or property portfolio out of the landlord’s hands. As part of this service we will:
–– Collect rent
–– Act as the main point of contact for the tenant
–– Produce high quality property details
–– A
rrange repairs to be carried out by our approved contractors,
selected for their excellent service and competitive pricing
–– D
iscuss PR editorial opportunities through both our in-house
and retained PR Consultants
–– Organise inventories and cost any dilapidations at the end of the tenancy
–– P roactively contact all suitable prospective tenants on our extensive
applicant, Relocation Agents’ and Corporate Services’ databases
–– Undertake two property visits each year
–– Erect a ‘To Let’ board, subject to approval
–– N
otify utility companies of a tenant change over
(with the exception of telephone and media companies,
which require instructions from the account holder)
–– Accompany all viewings and provide feedback
–– Provide the landlord with advice on any relevant legislation
–– Discuss all offers and negotiate terms
–– T
ake legal action on the landlord’s behalf,
(in the rare event that this is necessary)
–– Draft all tenancy documentation and register the deposit
–– E nsure all relevant paperwork has been signed and processed
before the tenancy is due to commence
–– C
ollect the rent payable by the tenant throughout the tenancy and
pay this onto the landlord with a reconciled statement of account
Our goal is to secure the best possible price within the shortest possible time.
–– Organise a professional clean of the property at the end of a tenancy
–– Offer an optional refurbishment and advice service
Vacant Management
If you have a property that is currently unoccupied, our Property Management team can
look after the property on your behalf. This is a particularly useful service for landlords
who are unable to visit the property themselves.
As part of this service we offer:
–– Fortnightly visits
–– The payment of interim utility bills and service charges
–– Checks for any maintenance requirements
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PRIME
PRIME offers an experienced team of professionals dedicated to
meeting the high demands of managing a successful property
portfolio. We provide intelligent advice on portfolio growth using
our considerable experience and significant company resources.
Our objective is to work with you in order to maximise your
investment whilst ensuring the continued smooth day to day
running of your properties.
As part of this service we offer:
–– Account management
–– S ourcing properties for clients who wish to expand their
portfolio or buy a new home
–– Financial management and statutory compliance
–– Periodic statements of account
–– Preferential rates
–– Refurbishment and interior design service
–– Pro-active and personable approach to management
–– Vacant and lifestyle management
–– Introduction to a specialist tax advisor
Contact us on
020 7298 5908
[email protected]
An experienced team of professionals
dedicated to meeting the high demands of
managing a successful property portfolio
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Chestertons has a dedicated
Corporate Services department
which maintains relationships with
many of London’s largest employers
Corporate and
Short Lets
Chestertons has a dedicated Corporate Services department which
maintains relationships with many of London’s largest employers,
helping them find suitable long and short-term rental accommodation
for their employees.
The Corporate Services team works closely with
both landlords and corporate clients to offer a
range of services:
Relocations and Secondments
We provide companies with an extensive property
search service, working with their financial
expectations and taking into account the
employees’ needs. We provide all the information
they need to be ready for move-in day, as well as
local area knowledge and other details they’ll find
useful during their stay.
Relocating is often a stressful time, but Chestertons
does everything it can to make the process quick
and simple so that employees can concentrate on
settling into their new role and enjoying one of the
world’s most rewarding cities.
Serviced Accommodation
We have relationships with a huge network of
serviced accommodation providers which gives
us access to a wide range of quality properties
available on flexible terms, from townhouses to
flats, for single professionals, couples or families.
Many of these properties include housekeeping,
parking, gyms and where required, conference
rooms.
Short lets
We are able to source fully furnished properties
of all sizes for short term accommodation.
Typically, these are available from one to six
months and can be obtained at short notice.
Short lets provide a comfortable alternative
to hotels or serviced apartments, giving the
tenant a real ‘home from home’ environment
during their stay.
Contact us on
020 3040 8623
[email protected]
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Refurbishment
Chestertons’ Refurbishment team
can help increase the value of
your property
The presentation of a property has a big impact on its value so if your
property is starting to look a little tired, or you have recently acquired
a property in need of an update, Chestertons’ Refurbishment team
can help increase the value of your property.
The team will completely oversee the project on your behalf,
leaving you to concentrate on other priorities.
How we can help you
We can provide advice on how to improve the property, from repainting and
carpeting, to completely renovating throughout.
We pride ourselves on managing projects efficiently and thoroughly from
the first consultation right through to snagging once the works are complete.
Our services include:
–– A detailed list of recommended works including quotes
–– Access to our trusted and accredited contractors, architects and surveyors
–– Working with you to a timescale that suits your goals and needs
–– Regular site visits to ensure works are running to schedule
–– Final quality checks and payment of invoices
–– Before and after photographs
We can provide examples of recent refurbishments which we’ve managed
at the initial consultation meeting.
Furniture and property styling
When trying to sell or let your property, it is absolutely vital that you present
your property in the best possible light. This helps viewers imagine themselves
living in the space and making them more likely to choose your property over
another. We can work with the available space, de-clutter or add additional
furniture and accessories to make your property’s features shine through.
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Contact us on
020 7298 5931
[email protected]
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Renewals
We understand that renewing a tenancy can be a stressful period for
landlords and tenants but with our simplified renewal process, we aim
to make the process as easy as possible for both parties involved.
Our renewal process
Regardless of the level of service you choose, be it Let and Rent Collect or Fully Managed,
you can be confident that as the end of the tenancy term approaches, our expert
renewals team is in place to ensure a smooth and successful renewal of the tenancy.
To determine the intentions of both parties, we will contact them three months before
the tenancy’s end date. If a renewal is not possible at this point, your local lettings
manager will be informed and will promptly review your property and re-market it
as soon as possible (upon your instructions).
Responding to your priorities
Your priority may be to achieve the highest rental income from your property
investments or it may be to avoid having the property empty for any period.
Whatever your preference, we are well placed to advise you on the best
course of action.
Fixed term contracts rather than periodic tenancies.
A periodic tenancy allows the tenant to give one month’s notice before moving out,
increasing the likelihood of a void period. Some landlords and agents allow tenancies
to run into periodic terms and, although this may occasionally suit both parties, it is not
usually an advantageous situation for the landlord. Our renewals team will negotiate
hard for a fixed term contract but if a periodic tenancy looks likely, we will notify the
landlord as soon as possible to allow them to consider all their options.
Complex Circumstances
We are confident that we can still advise you even if your renewal is made more
complicated by one of the following situations:
Other entities
If you are not using our tenancy agreement, we are still able to advise you. We will provide
you with the necessary supporting tenancy documents and assist in the signing process.
If an Option to Renew clause (specifying terms relating to the renewal of the tenancy,
for example rent increases) forms part of the initial tenancy agreement, we will remind
both parties of this clause three months prior to the end of the tenancy. We will also
ask the tenant(s) if they are planning to renew the tenancy or not.
Terminating tenancies
The Renewals Department is the best placed team to deal with any matters that
might occur at the end of a tenancy, whether this is accepting notice from a tenant
who doesn’t wish to renew the tenancy or serving notice on behalf of a landlord who
wishes to end the tenancy. Whatever happens, we are highly experienced and qualified
to handle these situations, making them proceed as smoothly as possible for our clients.
At the point of renewal we will assess all aspects of the tenancy and property.
We will advise you on rental market conditions and negotiate the renewal terms in
accordance with your instructions.
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Landlord
Safety Obligations
As a landlord there is a list of regulatory safety obligations which you
MUST adhere to, to ensure the safety of your tenants. Complying with
the numerous and constantly changing regulations can be a complex and
time-consuming job but is fundamental to the responsibilities of a landlord.
Electrical Safety
If we manage your property, Chestertons will arrange all of the necessary safety checks on
your behalf as part of our service. Even if we do not manage your property, we are still very
happy to arrange the checks for a small administration fee, plus the cost of the safety
check undertaken.
There are several pieces of legislation regarding electrical safety, the key ones being:
Gas Safety
Properties with a gas supply must comply with the above legislation.
Housing Act (England & Wales) 2004 introduced the Housing, Health and Safety Rating
System (HHSRS), which assesses the impact of poor housing standards on health and
considers the provision of sufficient electrical lighting, sockets and condition of portable
electrical equipment.
The legislation is covered under criminal law and not following it could result in
a fine of up to £5,000 (or an unlimited fine in the Crown Court) or imprisonment.
More information can be found on the following websites:
As a minimum, landlords need to be sure that their properties and appliances meet
the following criteria:
–– Leads should not be worn or frayed for any appliance, including light fixtures and fittings
chestertons.com/gassafety
chestertons.com/gassafety2
–– No wiring should be accessible or visible
The Gas Safety (Installation and Use) Regulations 1998
Alternatively you can call the HSE Gas Safety Advice Line on 0800 300 363.
The Gas Safety Regulations state that:
–– Pipe work, appliances and flues must be in a safe condition
–– Inspection hatches must be inspected where flues are not visible
–– A
ppliances must be serviced in line with the manufacturer’s instructions.
If these are unavailable then servicing must be completed every year
–– Manuals for appliances must be made available for the tenants
–– L ocation of the Emergency Control Valve (ECV) must be known and the
property manager and tenant informed. A new ECV may need installing
if the current location is not accessible
Gas Safety Inspections (GSI) and Record Keeping
A tenancy cannot commence until a valid GSI is obtained for the property.
–– Live parts should not be accessible
–– Moving parts should be guarded
–– All plugs should comply with BS1363 and be correctly fused
–– Fireguards should comply with BS3248
–– Fire blankets should comply with BS EN 1869:1997
–– Heating appliances should be in good working order and serviced annually
Additional information is available at chestertons.com/electric
It is not compulsory to have an accredited electrician inspect either portable electrical
appliances or the fixed wiring at your property, however, Chestertons recommends hiring
an accredited electrician to carry out testing.
Electrical Equipment (Safety) Regulations 1994
In order to comply with law, the following tests are recommended:
A GSI must be completed every 12 months by a Gas Safe registered engineer
who will issue a Gas Safety Inspection record (GSI).
Portable Appliance Test (PAT).
Portable electrical appliances must comply with the above legislation meaning that:
–– Equipment is safe and will not cause death, injury or damage
–– R ecords of the annual GSI must be provided to the tenant prior to or at
the beginning of a tenancy and within 28 days of the annual check
–– A
n accredited electrician can check the safety of the appliances and issue a Portable
Appliance Test (PAT) report which should be carried out on an annual basis.
–– Copies of the reports must be retained for a minimum of 2 years
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The Landlord and Tenant Act 1985, which states that the electrical installation in a
rental property must be safe at the commencement of the tenancy and maintained to
a safe standard throughout the tenancy.
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ll appliances should bear both the “CE” and “BS1363” mark. Equipment without such
marks should be removed from the property prior to letting
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Landlord
Safety Obligations Cont.
Electrical Condition Report (EICR)
Fixed Electrical Wiring must also comply, this means that:
––
––
––
––
property’s wiring should be performed by a qualified electrician
A
The landlord must rectify any issues that are noted in the EICR
The landlord must file the reports safely and provide a copy to the tenant
The reports are valid for five years at which point the process should be carried out again
Furniture and Furnishings Safety
The Furniture and Furnishings (Fire) (Safety) Regulations 1988 (as amended)
These regulations set levels of fire resistance for upholstered furniture,
furnishings and other products containing upholstery, such as:
–– Armchairs and sofas
–– Sofa beds and futons
–– Beds/bed bases/divans
–– Headboards
–– Mattresses
–– Pillows
–– Nursery furniture
–– Garden furniture which could be used indoors
–– Covers for furniture and cushions
They do not apply to:
–– Bed clothes and duvets
–– Carpets and curtains
–– Furniture manufactured before 1950 (although you will need evidence
that the furniture predates the 1950s)
To be compliant:
–– All furniture must bear a manufacturer’s label which must be permanent
and non-detachable
–– The label must show that upholstered items have fire resistant filling material
–– If there is no label, then that item should be removed from the property prior
to any tenancy commencing
–– Landlords should keep all receipts for furniture and make sure an inventory is made
–– Landlords should try to purchase furniture from a reputable retailer
These regulations are enforced by local Trading Standards Officers and you should consult
them should you have any queries. Failure to comply can result in a fine of £5,000 per item
that doesn’t conform with the regulations, a 6 month imprisonment and an invalidation of
your buildings insurance.
Building Safety
Building Regulations 1991
This legislation requires that all new homes built after 1991 are fitted with mains operated
smoke detectors on every floor.
For older buildings, Fire and Safety Officers recommend the installation of battery operated
detectors. This not only helps to safeguard the tenant living in the property but also to
minimise any potential damage to the property itself.
Energy Performance of Buildings (Certificates and Inspections)
(England and Wales) Regulations 2007
The Energy Performance of Buildings Directive was created by the European Union to
combat climate change by reducing the level of carbon produced by buildings, making
Energy Performance Certificates (EPCs) a statutory requirement for rental properties.
The main requirement for residential property is that an EPC is to be produced upon the sale,
rental or construction of a building. A “recast” of the Directive – which came into force from
9th January 2013 states that:
–– Responsibility for providing the EPC lies with the “relevant person”
–– When letting a property, the “relevant person” is the landlord
–– Landlords must provide an EPC “free of charge” to interested parties
at the earliest opportunity
–– Agents must ensure that an EPC has been commissioned before they
can market a property
–– All advertisements must state the EPC rating where this is available
–– EPCs are valid for 10 years
–– Where more than one EPC is produced for a building, the most recent EPC is the valid one
–– There are very few exemptions to these regulations that are relevant to rental properties
(except for listed buildings)
An EPC shows an energy efficiency rating on an A–G rating scale and includes recommendations
on how to improve energy efficiency. It will also detail which of these measures would be
eligible for finance under the Green Deal Scheme. Information on the Green Deal scheme
can be found at chestertons.com/greendeal
The Trading Standards Office enforces these regulations. If a landlord fails to provide an EPC
to a tenant or an enforcement officer when asked, Trading Standards can issue a notice with
a penalty charge of £200 per dwelling. The EPC will still have to be provided to the tenant,
even following a fine.
Due to the scope of the Consumer Protection Act 1987, which covers the hiring and lending
of furniture “in the course of business”, landlords are responsible for ensuring that the
furniture and furnishings they supply in a property are compliant with the above regulations.
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Guide to tax legislation
for landlords
Under current legislation, both landlords and agents have responsibilities to
HM Revenue & Customs. The following is a brief guide to make fulfilling these
responsibilities as simple as possible, as well as facilitating cash flow.
All individual landlords should notify HMRC when letting a residential property
as the income generated is subject to UK tax. Company landlords should
account for the income as part of their business revenue.
Tax is payable on the profit made from letting a property but HMRC allows certain expenses
to be offset against the rental income. This could include items such as letting agents’
and accountants’ fees, interest on property loans and repairs to the property (but not
improvements). Landlords offering a furnished residential property may also be eligible
for a ‘wear and tear’ allowance.
We strongly recommend that all landlords seek the advice of an accountant or
tax specialist regarding their tax affairs. Further information can be found at:
https://www.gov.uk/renting-out-a-property/paying-tax
Overseas Landlords
Deduction of income tax at source
Receiving rents gross
Under the Taxation of Income from Land (Non-Residents) Regulations 1995, there is
provision for non-resident landlords to apply to HMRC to receive rental income without
deduction of tax at source. Where a property is owned by more than one person, each
named landlord should apply individually.
The cash flow benefits from obtaining HMRC permission to receive rental income without
deduction of tax are considerable so Chestertons recommends that its non-resident
landlords apply for this scheme. However, please note that we are unable to deal with
the application on behalf of our landlords.
Once the application is approved, HMRC will send the landlord and their letting agent
an Approval Certificate. Once the agent is in receipt of the original Approval Certificate
(addressed directly to the agent), they can then pay rent in full to the landlord from
the date of the approval. An Approval Certificate must be received for each individual.
Please note that an approval to have tax paid gross is not exemption from UK tax liability.
In applying for approval to receive rents without deduction of tax, the landlord undertakes
to comply with their UK tax obligations. This means that if the landlord receives approval,
they should submit an annual tax return to HMRC and settle any tax liability on their
net rental income by Self-Assessment. Once a landlord has been accepted into the
Non-Resident Landlord’s Scheme, any tax issues arising out of letting property in
the UK is their responsibility and it is for them to directly deal with HMRC.
There are two bodies of legislation that govern the tax relationship between an
overseas-based landlord (also referred to as ‘non-resident’ landlords), their agent and
HMRC. Firstly, under the Income Tax Act 2007, a letting agent is obliged to retain tax
at the standard (20%) rate on any rent it receives on behalf of an overseas landlord
and pay it to HMRC.
Although we appreciate that landlords can deal with HMRC directly themselves,
Chestertons strongly advises our clients to use the services of a UK tax expert.
Costs related to letting a property such as fees, maintenance and mortgage interest are
tax-allowable but, it is unlikely that the agent receiving the rent will be able to account for
all tax-allowable expenses for the property prior to deducting tax and sending to HMRC.
Also, the agent cannot take into account any personal allowances to which the landlord
may be entitled so the tax deducted at source will, in many cases, be excessive.
Chestertons works closely with Optimus Tax Ltd, a company that has specialised in
overseas landlords’ UK tax affairs for over 25 years and charges standard, set fees for
their administration service.
If a landlord does not apply for, or does not receive HMRC’s approval to receive rents gross
(see below), the letting agent is obliged to pay HMRC any tax deductions on a quarterly
basis. The quarter dates are 31 March, 30 June, 30 September and 31 December. If, as is
likely, these payments are greater than the landlord’s liability, it is the landlord’s responsibility
to liaise with HMRC and agree directly with them any tax refunds that may be due.
Help and advice
For further information or to appoint them, visit their website www.optimustax.com
or call +44 (0)1225 480588. Initial advice is given without charge.
HM Revenue & Customs also provide useful information about taxation for non-resident
landlords at http://www.hmrc.gov.uk/international/nr-landlords.htm
Chestertons issues its overseas landlords with a certificate – NRL6 – confirming the payments
it has made to HMRC on the landlord’s behalf. If Chestertons is involved in making these
payments, because the landlord is not party to the Non-Resident Landlord’s Scheme,
there is an annual charge.
Chestertons is legally obliged to notify prospective tenants that are asked to pay their rent
directly to an overseas landlord that they will be required to deduct tax from their rental
payments and pay the tax to the HMRC, unless or until they are in receipt of the landlord’s
Approval Certificate, issued by HMRC.
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Hampstead
Kentish Town
Camden & Primrose Hill
St. John’s Wood
Islington
Little Venice
Covent Garden
Hyde Park
Mayfair
Kensington
Tower Bridge
Knightsbridge & Belgravia
Notting Hill
Chiswick
Kew
Barnes
East Sheen
Chelsea
Fulham
Putney
Canary Wharf
Westminster & Pimlico
Battersea Park
Battersea
International offices
Abu Dhabi
Australia
Barbados
Canada
Cayman Islands
Dubai
France
Gibraltar
Italy
Malta
Russia
Singapore
South Africa
Spain
Reproduction of this document in whole or in part is not permitted without the prior written approval of Chestertons. November 2014.
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