Arron James Karis

Rent Guarantee Insurance

In an uncertain world, it's good practice to obtain protection. Tenant's circumstances can change for any number of reasons, so it's prudent to minimise the risk to your income. Rentsure Silver can assist to protect your rental income. The insurance provides:

• Rent Guarantee Insurance; protection to pay the monthly rent for up to 12 months on breach of tenancy agreement
• 100% of the rent paid until full and vacant possession is obtained
• 75% of the rent paid for up to 2 months once full and vacant possession is obtained until the property has been re-let
• Covers monthly rents up to £5,000 (or higher upon request)
• Covers Legal Costs:
• to obtain possession of the property on breach of the tenancy agreement
• to defend a Legal Action brought against you by your tenants
• to remove squatters
• Pays the cost of alternative accommodation up to £50 per day or a maximum £1,500 per claim
• Cover is only available for properties to be insured within England, Scotland or Wales
• Insurance premiums are a tax deductible expense

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Building & Contents Cover

Finding specialist landlords insurance for rental property can sometimes be a challenge. All too often, landlords find their property is not adequately covered by standard insurance policies. Landlords’ Household Insurance from Letsure is different - it provides comprehensive property insurance for the rental market.

Landlords face unique risks when letting out property, so protecting your investment against the unexpected is a prudent step. Landlords Household Insurance covers:

• Buildings insurance (if required)
• up to £400,000;
• Contents insurance (if required)
• up to £40,000 for furnished property;
• or up to £5,000 for unfurnished property (covers carpets, curtains, domestic kitchen appliance, light fittings and sunblind’s)
• Loss of rent as a result of insured event (up to 20% of the sum insured on buildings and /or contents)
• £2,000,000 public liability cover
• £5,000,000 employers liability cover
• Protection against damage caused by the tenants
• Accidental damage cover options available
• Full cover for property unoccupied between lets (subject to conditions)
• Monthly premium payment option (subject to acceptance- Service charge applies)
• Insurance premiums are a tax deductible expense

Landlords Household Insurance is accepted by mortgage lenders.

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Legal Protection

Disputes with tenants can be costly. Don't be faced with the unexpected expense of solicitor's fees. Letsure Legal Protection Insurance can provide you with invaluable protection. Legal Protection Insurance covers your property against risks such as the legal costs that may arise if your tenant(s) breach the terms of their tenancy agreement with you by providing cover for legal expenses and disbursements.

The policy provides:

• Legal expenses cover, up to £50,000 per annum, for disputes over unpaid rent and damage to property (subject to the minimum amount in dispute exceeding £250) Assistance to trace 'gone-away' tenants
• Cover is only available for properties to be insured within England, Scotland or Wales. Insurance premiums are a tax deductible expense

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Check In and Check Out Inventories

The deposit protection schemes established under the terms of the Housing Act 2004 require that all landlords need to be protected by good inventory and condition reports from the outset.

Arron James Karis can arrange for a full inventory and preparation to take place and a charge will be made for this depending on the size of the inventory and the property.

This inventory will be carried out by an independent inventory clerk, the standard inventory will include all removable items in the property (except those of negligible value) plus carpets, paintwork, wall coverings, curtains, mirrors, sanitary ware and other articles that, in the opinion of Arron James Karis needs regular checking.

Landlords should not leave any articles of exceptional value in the property without prior arrangement with Arron James Karis.

The standard inventory service will also include a full schedule of condition (condition, colour, & decoration of ceilings, walls, doors & door fittings etc).

Evidence of condition or damage (i.e. photography) will be prepared as required, or at the Landlords request and will be charged accordingly.

For Let Only and Rent Collection Services, landlords should be aware that they will be unable to make deductions from a deposit unless they have proof of condition of the property and its contents both at the start and at the end of the Tenancy i.e. an Inventory.

Gas Safety Certificates

Landlords have legal responsibilities to their tenants when it comes to gas safety.

If you are a landlord letting a property equipped with gas appliances you need to understand and comply with the law relating to gas safety.

If you let a property, you must make sure that pipe work, appliances and flues provided for tenants are maintained in a safe condition.

You need to have a gas safety check every year. A Gas Safe registered engineer must carry out the safety check in your properties.

You must give your tenants a copy of the gas safety record within 28 days of it being carried out or before they move in.

You are also obliged to show your tenants how they can turn off the gas supply in the event of a gas leak.

Annual checks

As a landlord, you are legally responsible for making sure that a Gas Safe registered engineer checks the gas appliances in your rental properties every 12 months and gives you copies of the gas safety records. Gas safety records

When your Gas Safe registered engineer has checked the gas appliances in your rental property they will give you a gas safety record.

This record confirms the gas appliances have been checked and are safe.

You must give your tenant a copy of these gas safety records within 28 days of the checks being done, or give a copy of the gas safety record to a new tenant before they move in.

Remember, you must keep a record of each safety check for two years.

Contact us to arrange a Gas Safety for your property.

Energy Performance Certificates (EPC)

An Energy Performance certificate is required by law before marketing can commence on a rental property.

Tenant Referencing

All our referencing checks are carried out by Letsure

Tenancy Deposits

Upon signing the tenancy agreement, the Agent will take a dilapidations deposit from the tenant(s) in addition to any rents due.

The purpose of the dilapidations deposit is to protect the Landlord against loss of rent or damage to the property during the tenancy itself. These deposits will be administered as per clause 6 in the standard management service.

Statutory Tenancy Deposit Protection – Where the tenancy is an Assured Shorthold Tenancy, the Landlord or Agent is legally required to ensure that any tenancy deposit taken under the tenancy is protected within one of three statutory tenancy deposit schemes within 14 days of receipt.

The schemes are:

• The Deposit Protection Service (DPS)
• My Deposits (Tenancy Deposit Solutions Insurance Scheme) NLA/TDS
• Tenancy Deposit Scheme (Arla – TDS)

For our Let Only Service it has been our policy to pass the deposit over to the Landlord along with the first month’s rent less our fees. From now we will only be able to pass the deposit to a Landlord when we have seen evidence that they are registered under one of the schemes.

This evidence must be supplied before the tenancy commences. If not we will pass the deposit directly to The Deposit Protection Service (DPS) for which there will be an admin charge £25.00.

For our Full Management Service we will continue to hold the deposits in a separate and secure client account ready for refunding under the Tenancy Deposit Solutions Insurance Scheme and the charge will be £55.00 per tenancy.

Tenancy Deposit Information

Where statutory tenancy deposit protection applies to a tenancy deposit, the Agent will provide to the tenant within 14 days the following information required from the Landlord by the Housing Act 2004:

(a) Information on the particular scheme under which the tenancy deposit is protected

(b) Compliance by the Landlord with his obligations under the Act and

(c) Prescribed information for the tenant

More information on the requirements of the deposit protection schemes is available on the following web site and landlords are strongly urged to familiarize themselves with their legal responsibilities, Scheme Rules are available on the appropriate websites listed above. The landlord must download, read and understand them. A hard copy can be requested if required.

Tenancy Deposit Disputes

Arron James Karis will attempt by negotiation to resolve any deposit disputes between the landlord and the tenant.

Where the deposit is subject to statutory tenancy deposit protection and a dispute cannot be resolved between the parties, and then it will be necessary to submit the claim to the tenancy deposit administrators for adjudication under an alternative dispute resolution (ADR) process or to take Small Claims action in the County Court.

Estimate of the likely costs of preparing and submitting the claim to adjudication or for Small Claims will be submitted to the Landlord before any case is started.

Debt Collection Service (PDR)

This is normally used by Landlord without a full Rental Warranty for Tenants owing Rent but can be used for any debt and is available to all Landlords.

Fees for this service are as follows and will need to be paid before the debt is forwarded:

• Debts up to £1000.00  - £50.00
• Debts more than £1000.00  - £100.00

The Debt Collection Agency may need to charge further costs for works required e.g. a trace from £35.00 and Court Fees from £70.00 depending on the size of the debt. All costs paid by the Landlord are added to the debt.

The Landlord must be prepared to take the debtor to court if taking this service. So far the Debt Collection Agency we use has been very successful, with the majority of debts being paid in full or monthly.

Visits

Under the Standard Management Service, Arron James Karis will carry out visits on a maximum four monthly basis starting at the fourth month.

If you require more frequent visits you should notify us in writing as and when you wish these to be carried out during the course of the Tenancy. Additional visits including those to empty properties will incur a charge of £50.00 per visit.

Such visits do not constitute a formal survey of the property, and it is not the intention to check every item of the inventory at this stage. The visit is concerned with verifying the good order of the tenancy (i.e. house being used in a ‘tenant-like’ manner) and the general condition of the property.

This would normally include inspecting the main items (carpets, walls, cooker, main living areas and gardens). Where these were felt to be unsatisfactory, a follow up visit would generally be made. Following the departure of tenants, a final inspection (Check Out) is carried out by the Inventory Clerk.

Testing of all electrical appliances, heating system and plumbing is not feasible during this inspection: a qualified contractor should be appointed for this purpose should it be required by the Landlord. Any deficiencies or dilapidations would normally be reported to the Landlord (and, if appropriate, to the relevant tenancy deposit scheme administrator) together with any recommendations for deductions or replacement values.

Houses of multiple occupation (HMO)

What is a HMO?

House of Multiple Occupation is a house which is being rented out to more than two people who come from different households. You may require a licence in order to rent out a HMO. Depending where the property is located will depend on which local authority who will issue it.

Some works may be required at the property in order to bring it up to the standard required. If you are unsure of what works are needed or how to go about getting a licence granted for a property, call us today

Portable Appliance Testing (PAT)

There is no statutory obligation on Landlords or Agents to have professional checks carried out on the electrical system or appliances.

However, under Common Law and various statutory regulations: The Landlord and Tenant Act 1985, The Housing Act 2004, The Electricial Equipment (Safety) Regulations 1994, and the Plugs and Sockets etc (Safety) Regulations 1994, both of which come under the Consumer Protection Act 1987, there is an obligation to ensure that all electrical equipment is safe.

We would advise you as a landlord to make visual inspections yourself in your property (record on a safety checklist) and have periodic checks carried out by a qualified electrician.

• Ideally, ensure that the electrical system complies with the latest wiring regulations.
• Make sure a circuit breaker (RCD) is fitted to power circuits.
• Keep supplied appliances to a minimum.
• Make sure appliances supplied are complete and in working order – keep purchase receipts.
• Pay particular attention to second hand equipment – always have these items checked.
• Ensure that operating instructions and safety warning notices are supplied with the appliances.
• Ensure that flexes are in good order and properly attached to appliances and plugs.
• Ensure that earth tags are in place.
• Ensure that plugs are of an approved type with sleeved live and neutral pins.
• Ensure that plugs and sockets conform to BS1363 or BS 1363/A for heavy duty uses.
• Ensure that all fuses are of the correct type and rating.
• Make sure that tenants know the location of and have access to the main consumer unit, fuses and isolator switch.
• Make a note of all fuse ratings on the inventory.

If you are in any doubt about the wiring or the safety of any appliances consult a qualified electrician.

Please contact our Contact us Property Management Centre, should you wish to discuss this further.