Tenancy Agreement

The Tenancy Agreement is a legally binding document and is drawn up to protect your rights to possession as well as detailing your responsibilities as a Landlord, and the Tenant’s responsibilities. We generally use our own Tenancy Agreement modified to suit each Tenancy.

The Agreement will be a “Short Assured Tenancy” unless it is a Company let.

Simpson Brebner Lettings will sign the Agreement as Agent on behalf of the Landlord.

Deposit

The deposit is payable by the Tenancy before the Tenancy starts. The deposit is the equivalent of one months rent and is usually held by Simpson Brebner Lettings on behalf of the Landlord.

The deposit is released when agreement has been reached between the Landlord/Agent and the Tenant regarding any damages/cleaning, etc. The inventory report and check-out report are invaluable, as they are the tools which determine a fair account of the condition of the property both at the start and end of the Tenancy.

Inventory 

The inventory is a detailed document prepared by an independent firm of Inventory Clerk’s. The document will highlight the condition and cleanliness of the property together with its contents at the start of a Tenancy.

We would always advise using an independent Clerk to provide an inventory of the property, whether it is furnished or unfurnished, to minimise any unnecessary disputes at the end of the Tenancy.

At Simpson Brebner Lettings we will arrange for the inventory to be carried out by a local inventory clerk.

After production of the inventory, a copy is given to the tenant who will be asked to check through thoroughly and advise our office of any discrepancies or omissions.

“CHECK-IN” – On the day that the tenant moves in, Simpson Brebner Lettings will carry out the check-in. We will meet the tenant at the property and obtain their agreement that the general condition of the property is clean and acceptable. The tenants will be asked to sign a “Check-in Declaration” to this effect.

“CHECK-OUT” – At the end of the Tenancy, Simpson Brebner Lettings will meet with the tenants at an agreed time and compare the condition of the property against the original inventory. A report will be prepared to reconcile the deposit monies.

The cost of the inventory preparation and check out reports will be shared equally between Landlord and Tenant.

Property Visits

Our management service includes property visits three/four times a year during the Tenancy. This is a general review and not an “item by item” check, however, it does provide us with an opportunity to assess the general condition of the property and highlight any maintenance issues that may need to be brought to the landlord’s attention. It also gives us the chance to ensure that the property is being looked after in a tenant-like manner.

Insurance and Tax

Insurance

As a Landlord you need to advise your buildings insurer that the property is to be occupied by tenants. The tenant will be responsible for insuring their own belongings but you should maintain cover for any contents you are leaving at the property.

If you would like more information on insurance products and services that are designed specifically for Landlords, please call:
Endsleigh (00 028 3571)
Letsure (0870 077 0880)
Homelet (0845 117 6000)

Mortgage

We recommend that you tell your mortgage company you intend to rent out your property. Most banks and building societies require you to seek their permission.

Income

Income Tax

The Inland Revenue state that income from property is subject to taxation at standard rates, and your expenses on letting the property are generally tax deductable (these often can include loan interest payments, but will exclude capital expenditure, such as furniture/appliances etc.) You will need to tell the Tax Authorities that you are renting out your property. We can offer general guidance, however, we strongly advise you instruct an accountant if you are uncertain in any way.

Non-Residents

If you will be living overseas you must complete an Inland Revenue NRL1 form (available from us) to enable an agent collecting rent on your behalf to transfer this rent on to you without deducting tax at basic rate. Please ask us for more information.