landlord guide - clan gordon · and in good working order. blackout curtains/blinds should be...

Landlord Guide Clan Gordon | 1

LANDLORD GUIDE

2 | Clan Gordon Landlord Guide Landlord Guide Clan Gordon | 3

JOIN CLAN GORDON

STAGE 1

STAGE 1

Join Clan Gordon 04

Register as a landlord Complete our online form Sign the agency agreement Send copies of IDProvide keys Landlord insurance

Meet the Team 08

STAGE 2

Getting the Property Ready 10

Renovations Cleaning Furnished or unfurnished?Safety certificates Gas boiler maintenance cover

STAGE 3 Finding the Right Tenant 14

Advertising Viewings ApplicationReferencing

STAGE 4 Starting a New Tenancy 16

Collect tenant deposit Collect rent payment Sign lease documents Final clean InventoryCheck inUtilities

STAGE 5 Clan Gordon Management 18

InspectionsMaintenanceMonthly management report Rent reviews Ending a tenancy Check out

Contents


1 REGISTER AS A LANDLORD Visit Landlord Registration Scotland www.landlordregistrationscotland.gov.uk to register as a landlord with The City of Edinburgh Council. There is a discount for registering online.

All joint owners must register separately and be linked to the property.

Add Clan Gordon as your agent for the property. Our agency number is 185544/230/17510.

If you have any problems registering online please contact The City of Edinburgh Council on 0131 469 5293.

Your registration will be valid for 3 years from the date it is approved. You have a legal duty to ensure that your contact details remain up to date.

Non-resident landlords If you live outside of the UK for 6 months or more per year you are classed as a non-resident landlord by HMRC, even if you are a UK resident for tax purposes.

To register as a non-resident landlord, visit www.gov.uk/tax-uk-income-live-abroad/rent and follow the link to the NRL1I form. Our agency number is NA043399

If your tax affairs are up to date, we will receive an exemption certificate from HMRC. It currently takes around 6 weeks for HMRC to issue the certificate. If you do not register as a non-resident landlord we are obliged to deduct 20% of your rental income and pay it to HMRC.

2 COMPLETE OUR ONLINE FORM www.clangordon.co.uk/joinclangordon

The information provided is used for marketing and managing your property, as well as drawing up the tenancy agreement, so it is important to complete this with as much detail as possible.

3 ELECTRONICALLY SIGN THE AGENCY AGREEMENT You will receive the agency agreement by email as soon as we receive your online form confirming ownership details.

4 SEND COPIES OF IDWe require scanned copies of the following documents from each landlord to confirm identity and ownership of the property:• Proof of ID (e.g. passport, driving

licence)• Proof of address (e.g. driving licence,

utility bill)• Proof of ownership of the property

(e.g. mortgage statement, deeds, final missives)

5 PROVIDE KEYS 4 working sets of keys are required before we begin marketing the property. • 2 tenant sets • 2 management sets

For HMO properties we need 1 set for each tenant and 2 management sets.

Clearly label any additional keys (e.g. garage, padlocks, windows, patio doors) and leave in the property.

6 LANDLORD INSURANCE As the landlord you are responsible for adequately insuring the property. Specific landlord insurance is required as a standard insurance policy will not provide the level of cover required for a rental property.

Although we focus primarily on professionals, we often find mature or PhD students are excellent tenants. We advise including student cover in your policy as many insurance policies exclude all students – even paid research students – and this will limit your options.

It is essential to let us know if your insurance policy does not cover students.

Join Clan Gordon

STAGE 1

CLAN GORDON BLOCK LANDLORD INSURANCE

Through our relationship with Bruce Stevenson Insurance Brokers – specialists in insurance for letting agents and landlords – we have set up a block insurance policy for our managed properties. The policy is currently provided by LV and can cover buildings and/or contents insurance.

Visit www.clangordon.co.uk/blockinsurance for further details or to apply for a quote online.

We can only handle insurance claims on behalf of clients whose properties are included on our block insurance.


Now you can relax... we will take it from here.

Landlord Guide Clan Gordon | 9 8 | Clan Gordon Landlord Guide

ED PAINE Lettings Director Main responsibilities: Oversees the lettings process; Manages lettings staff; Main contact for existing landlords

PAULA HYSLOP Operations Director Main responsibilities: Oversees company operations; Manages client accounts; Rent collection; Monthly management reports

JONATHAN GORDON Managing Director

ANDREW GORDON Managing Director

Meet the team

Each member of the Clan Gordon team specialises in a different part of the lettings process, allowing us to provide the best possible service to our clients. We use a communications software which means that all emails sent to [email protected] are automatically assigned to the correct team member, eliminating the hassle of dealing with multiple contacts.

Your main Clan Gordon contacts are:

Although each team member specialises in a specific area of the lettings process, we all work together in one room so everyone is aware of your property and can assist with any queries that you have.

THOMAS HURST Property Manager Main responsibilities: Manages property renovations; Tenant check-out; Property inspections

JEN MATHIESON Lettings Negotiator Main responsibilities: Property viewings; Tenant check in; Supports all areas of the lettings process; Manages property key system

GILLIAN MCINTOSH Sales and Marketing Manager Main responsibilities: New landlord communications; Advertising new properties

NATALIE COTTON Senior Property Manager Main responsibilities: Property maintenance; Safety certificates; Property inspections

KIM CRAVEN Lettings AdministratorMain responsibilities: Tenant communications; Creates tenancy agreements; Tenant referencing


GETTING THE PROPERTY READY

STAGE 2

1 RENOVATIONS A large percentage of the rental stock available is of a low standard, and newly renovated properties are in high demand.

The benefits of carrying out renovation works before renting your property are:

• Higher yield due to increased rent• Attract higher quality tenants • Tenants are likely to stay longer and

look after the property

We can project manage renovation works including:

• Decoration• New flooring or sanding • Boiler or heating replacement • Joinery snagging • Plumbing works• Kitchen and bathroom renovations • Fitting blinds and curtains • Window refurbishment and replacement

We can also manage more complex structural alterations and development work.

2 CLEANING Please ensure that the property is cleaned thoroughly, including windows inside and out, ready for marketing.

3 FURNISHED OR UNFURNISHED?There are several factors to consider when deciding to market your property as furnished or unfurnished and what to provide. We provide each client with property specific guidance.

» What to include in an unfurnished property:Kitchen: Fridge/ freezer, oven, hob, washing machine. A dishwasher and tumble dryer if there is space.

Additional items:

Curtains and/or blinds must be clean and in good working order. Blackout curtains/blinds should be considered for bedrooms.

Light pendants and fittings should be clean and shades fitted.

Ladder (where required) in good condition. Tenants must be able to safely change lightbulbs and test smoke alarms.

Television aerial must be working.

» What to include in a furnished property:For a furnished property include all of the items listed for unfurnished, plus:

Kitchen: Microwave, kettle, toaster and rubbish bin. Crockery, cutlery and utensils are only required for student properties.

Living room: Sofa/chairs, coffee table, side table(s)

Dining area: Dining table with chairs

Bedrooms: Bed, mattress, mattress protector, headboard, bedside cabinets, chest of drawers, wardrobe

Vacuum cleaner must be in good condition with clean filters and an empty bag.

All personal and decorative items (i.e. pictures, photo frames, ornaments) should be removed.

All furniture must comply with the Furniture & Furnishings Fire Safety Regulations 1988.

Please leave all manuals for the property in a folder.

Our handyman can collect, deliver and assemble IKEA furniture, or we can arrange quotes from other suppliers.

Getting the property ready

STAGE 2

continued >>


4 SAFETY CERTIFICATES Every rental property is different, so requirements to meet safety legislation can vary. Below is an overview of the certificates and devices required before your tenants can move in. We use a team of trusted contractors for all our safety checks.

GAS SAFETY CERTIFICATE (GSC)Checks the condition of all gas appliances. Checks must be carried out annually by a Gas Safe registered engineer. Certificates must be kept for 2 years and a copy given to the tenants.

£££ Call out £28.50+VAT. First appliance £26.50+VAT. Second appliance £12.50+VAT

CO DETECTORS Must be fitted in all properties containing a combustion device (running on gas, oil or solid fuel) with the exception of those used solely for cooking.

Required in: • Every space containing a

combustion device• Every bedroom or living room where a

flue passes through

£££ CO detector £31.45+VAT

PORTABLE APPLIANCE TESTING (PAT) Checks the safety of portable appliances, including white goods even when they are integrated. Appliances must be tested annually, certificates kept for 6 years and a copy given to the tenants.

£££ Price per appliance £2.50+VAT

LEGIONELLA RISK ASSESSMENT (LRA) Assess the risk of exposure to Legionella bacteria.

We arrange for an initial LRA to be carried out in line with the GSC or PAT, followed by annual checks to ensure that the risk to tenants is minimised.

We will proceed with arranging all remedial works categorised as medium or high risk costing under £100 +VAT. We will obtain quotes for all other remedial works.

£££ Legionella Risk Assessment £47.50+VAT. Annual check £17.50+VAT

The PAT and LRA are almost always carried out at the same time as the GSC. An additional call out charge will apply if carried out separately.

ELECTRICAL INSTALLATION CONDITION REPORT (EICR) Checks the overall condition of all electrical installations in the property. The EICR must be carried out at least every 5 years by a qualified electrician, certificates kept for 6 years, and a copy given to the tenants. We will proceed with arranging all remedial works categorised as medium or high risk costing under £100 +VAT. We will obtain quotes for all other remedial works.

£££ 1 or 2 bedroom property £95+VAT. Each additional bedroom £10+VAT

FIRE DETECTION AND ALARMS Required as follows: • Smoke detector in each circulation

space (hallways/landings)• Smoke detector in the principal living

room (may not be required if this is the same room as the kitchen)

• Heat detector in each kitchen • Minimum 1 on each floor • Alarms must be mains powered with

battery back up• Alarms must be interlinked

£££ Smoke detectors: Installation £95+VAT (per detector). Replacement £45+VAT

£££ Heat detectors: Installation £95+VAT (per detector). Replacement £45+VAT

5 GAS BOILER MAINTENANCE COVER Contract Heating offer an annual service contract for £198 (including VAT), which covers:• All repairs including parts and labour• Gas Safety Certificate • Portable Appliance Testing (for up to

10 items)

There are some caveats on this, especially for older boilers. Please ask for further details of the policy.

If you have taken out cover for your boiler or other appliances with a different company we charge £50+VAT to facilitate access for any contractors who cannot collect keys from our office.

6 ENERGY PERFORMANCE CERTIFICATE (EPC) A valid EPC is required before the property can be marketed for rent.

If you have recently purchased your property, the EPC will be included in the home report. Alternatively, you can search by postcode on the Scottish EPC Register www.scottishepcregister.org.uk

Let us know if you would like us to arrange an EPC on your behalf. An EPC is valid for 10 years.

£££ £47.50+VAT

Getting the property ready

STAGE 2

continued >>

All prices are subject to change.


FINDING THE RIGHT TENANT

STAGE 3

1 ADVERTISINGWe are one of the few letting agents to advertise on all the main property portals – Rightmove, Zoopla, CityLets, Prime Location, S1 Homes, LettingWeb – maximising exposure to potential tenants.

High quality photographs are taken using a professional camera and flashgun to show every property at its best.

A “To Let” board is put up at every property (where possible), unless we are advised otherwise.

2 VIEWINGS Applicants are screened from their first call to ensure only suitable tenants view the property. Applicants have individual viewing slots, which enables us to speak to each applicant in person, providing a personal insight that helps us to assist in choosing the best tenant for your property.

Many agents work on a ‘first come, first served’ basis, allowing anyone who would pass a reference check to rent a property. We believe that our personal approach ensures that the best possible tenants are chosen.

3 APPLICATIONLandlords are provided with the following information from each property application to assist in selecting their preferred tenant:

• Details of all proposed tenants, including children

• Occupations• Guarantor (if applicable) • Any other information provided by

the tenant that may be relevant

We do not accept pets in any of our properties.

4 REFERENCING All prospective tenants are thoroughly referenced by a third party. This includes:

• Credit check • Bank validation check• Background search• Financial sanctions check • Current landlord reference • Employment check • Affordability calculation

In some cases, where the applicant does not meet the referencing criteria, a UK based guarantor will also be referenced and sign a separate Guarantor Agreement.

Finding the right tenant

STAGE 3


STARTING A NEW TENANCY

STAGE 4

1 COLLECT TENANT DEPOSIT

Before the start of the tenancy a deposit equivalent to a minimum of one month’s rent plus £200 is collected.

We lodge all deposits with SafeDeposits Scotland, an approved Tenancy Deposit Scheme provider, and send Prescribed Information to the tenants within 30 days, as is set out in the tenancy deposit regulations.

2 COLLECT RENT PAYMENT

The first rent payment is collected before the tenancy begins, which will be pro rata if part way through the month. All subsequent rent payments are due on the 1st of the month. This makes it easy for us to identify and follow up on late payments immediately.

Once the rent has been collected we process any maintenance deductions and arrange contractor payments. All rent – less deductions and our management fee – is then transferred to arrive in client accounts on or before the 20th of the month.

3 SIGN LEASE DOCUMENTS

All of our tenancies are set up as Short Assured Tenancies which means that all tenants sign:

6 CHECK IN

We arrange an onsite check in for new tenancies where possible, rather than ask the tenant to collect keys from our office, as many agents do. This allows us to ensure that tenants understand their obligations and are aware of how to look after the property, including:

• Heating and ventilation • Cleanliness• Care of flooring and furnishings • Safety checks and certificates

7 UTILITIES

We take initial meter readings and ensure that the gas, electricity and council tax accounts are changed into the name of the tenant at the beginning of a tenancy.

At the end of the tenancy we take closing meter readings and change the accounts back into the landlord’s name (care of Clan Gordon) and then into the new tenant’s name. Any bills for short vacant periods in between tenancies are received in our office and paid on behalf of the landlord.

Please make sure that you have a mail redirection in place if you have previously lived in the rental property, and provide us with your forwarding address.

• AT5 document • Prior Grounds • Tenant information pack • Tenancy agreement

We try to ensure that all tenancies begin on an initial 12 month contract but this is not always possible. The minimum term for a Short Assured Tenancy is 6 months.

Following the initial period, tenancies roll on a month to month basis with 2 months’ notice for either party.

4 FINAL CLEAN

A final deep clean of the property takes place before the inventory is carried out. The tenant will pay for this to be done at the end of the tenancy.

5 INVENTORY

A photographic inventory is created at the start of each tenancy. This is carried out by an independent third party and records of all aspects of the property – from paintwork to furnishings – creating an unequivocal report of its condition. This is a valuable tool when negotiating deposit deductions.

Inventories currently start at £60+VAT, depending upon the number of bedrooms.

Starting a new tenancy

STAGE 4


CLAN GORDON MANAGEMENT

STAGE 5

1 INSPECTIONS An initial inspection is carried out in the first 2 months, followed by 6-monthly inspections. Additional inspections will be scheduled if the tenant is found not to be maintaining the property adequately or reaching an acceptable level of cleanliness.

Landlords receive a photographic report after every inspection.

2 MAINTENANCE At Clan Gordon we work closely with a range of trusted contractors so we are able to handle any maintenance issues that arise quickly and efficiently.

We deduct a maintenance float of £250 from the first month’s rent, allowing us to proceed with minor repairs without contacting the landlord. If an issue arises that requires a material change, rather than a straightforward repair, we inform clients and take instruction.

3 MONTHLY MANAGEMENT REPORT All landlords receive a monthly management report detailing financial transactions (including maintenance costs) on their client account.

4 RENT REVIEWS We review existing rents regularly and consider the market carefully when re-advertising.

5 ENDING A TENANCYMost of our tenancies continue on a month to month basis after the initial fixed term and come to an end when the tenant gives 2 months’ notice. We always contact our clients to take instruction before re-advertising a property.

Landlords must give 2 months’ notice to end a tenancy. This must be in line with the recurring end date of the tenancy, which can mean nearly 3 months’ notice depending on the timing of the notice.

6 CHECK OUTWe use the inventory to conduct the check-out, compiling a photographic report recording meter readings, any cleaning required and damage beyond fair wear and tear. Works are arranged as required to ensure that the property is ready for the next tenancy, and any costs are negotiated with the outgoing tenants before arranging to return the balance of the deposit.

Clan Gordon Management

STAGE 5

97%of our clients are satisfied that their property is achieving the correct level of rent for the current market.Client Satisfaction Survey 2016

of our landlords rate our level of customer service as either ‘excellent’ or ‘very good’.

98%

Client Satisfaction Survey 2016

Clan Gordon 1 Carmichael Place EdinburghEH6 5PH0131 555 4444

[email protected]

of our landlords believe that they get good value for money.


GOOD VALUE

...would recommend us.


of our landlords

of our tenants

&

landlord guide - clan gordon · and in good working order. blackout curtains/blinds should be...

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