Guide to letting a property

17th March 2022

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Are you thinking of letting a property but aren’t sure where to start? We’re here to help.

Lots of people have ambitions of becoming a landlord but are daunted by the process, unsure of their responsibilities. At Charters, we have years’ of experience supporting landlords and their tenants, from choosing the perfect buy-to-let property to helping at every step of the letting process.

Who can be a landlord?

The short answer is… anyone! If you let out your property, you are a landlord. However, you must meet some legal obligations to ensure your property is safe for your tenants.

Do I need to get a license to let?

You may need a landlord licence to privately let your property: the requirements vary around the country. Make sure you check the rules in your area.

What are a landlord’s legal responsibilities?

If you want to let out your property it must be free from health hazards. Additionally, you must:

• Check all gas and electrical equipment is properly installed and keep it maintained
• Fit and test smoke and carbon monoxide alarms
• Follow any fire safety regulations if your property is a flat
• Obtain and provide an EPC (Energy Performance Certificate)
• Check your tenant has the right to rent (England)
• Give/email your tenant a copy of the How to Rent Checklist
• Use a government-approved scheme to hold your tenant’s deposit

How much rent will I get?

Once you’ve decided to let out a property, it can be hard to know what rent to ask for. It’s usual to ask for a percentage of the property value: we can help you calculate the right price.

Do I have to pay tax on rental income?

Yes. In order to stay on the right side of the tax man, you must pay Income Tax on your rental income (minus allowable expenses), and Class 2 National Insurance if your let counts as running a business.

Also remember that, if you have a mortgage on a property, you’ll need to get permission from your mortgage lender to let it out.

Do I have to pay any fees?

Until recently, landlords would pass on certain fees to their tenants which they are now obliged to cover themselves. You will need to pay the following:

• Inventory fees
• Check in fees
• Check out fees
• Referencing fees
• Admin fees
• Cleaning fees

What are my responsibilities – repairs and maintenance?

You must keep the property in a good state of repair throughout any tenancy and your responsibilities extend to maintaining:

• Gas and electrical systems in line with specified safety standards
• Heating and hot water systems
• The structure of the property
• Sanitary fittings including sinks, basins and baths

I’m ready to start letting a property! What should I do first?

These are your 10 steps to letting a property. We can help with many of these steps or take care of them on your behalf.

1. Inform your mortgage lender (if you have one) that you intend to let. They will advise if you need to change your mortgage.
2. Ensure your property is safe e.g. carry out checks on electrical appliances, install smoke alarms, and obtain a Gas Safety certificate.
3. Get landlords’ insurance
4. Get an EPC and take meter readings
5. Advertise your property and find a tenant
6. Carry out a Right to Rent check
7. Ask for references
8. Arrange a tenancy agreement
9. Pay their deposit into a government approved scheme
10. Conduct an inventory

Where can I get help with property lettings?

At Charters, we have been helping clients let their properties for years. Whether you have a few questions about the process; are looking for a buy-to-let; simply want to find the perfect tenant; or would like us to take care of managing the tenancy on your behalf, please get in touch. We’ll be happy to help at ever.