Leasing/Letting Flashcards
Why would you advise your client to proceed with a lower offer?
- Often our clients are looking for long terms tenants, therefore the rent is not the only factor to consider
- The tenancy agreement is clear about the procedures should there be breaches of the terms
- We also undertake referencing prior to a tenancy starting on the potential tenants
What are other factors (other than size, location & character) that might affect a properties marketability?
- The market - specifically how much demand there is in the market
- The market - availability of similar property in the local area
- Compliance - for residential, does it comply with MEES, electrical safety standards
What are other factors (other than size, location & character) that might affect a properties value?
- Condition
- ## Local amenities such as good schools, transprort links
What are other factors (other than size, location & character) that might affect a properties value?
- Condition
- Local amenities such as good schools, transport links
- Number of bedrooms
What property lettings have you done?
Agricultural - licences, fbts
Residential - Ast’s from start to finish
Commercial - storage licences, Office leases, Storage leases
What is the typical rent for XXX in your local area:
Residential:
Commercial:
Agricultural:
Residential Rents - AST rents between £17-£23 /sqft
Commercial Office - £11-13 / sqft
Commercial Storage (inside) £4 / sqft
Agricultural - FBT grazing - £80 / acre
Agricultural - FBT arable - £130-150 /acre
Licence - dependent on terms, pony paddock may be £400 / acre
What legislation governs residential tenancies?
Housing Act 1988, Housing Act 1996, The Landlord & Tenant Act 1985
What legislation governs commercial tenancies?
The Landlord & Tenant Act 1954,
What legislation governs agricultural tenancies?
The agricultural tenancies act 1995, The Agricultural Holdings Act 1986
Please can you talk me through a residential letting from start to finish?
Assuming this is for a management client - we would already have signed terms of engagement
Firstly ensure the property is compliant and in good order for reletting.
Secondly I would advise the client on likely market rent and await instructions
Once received, I take pictures, market online, once interest received I undertake viewings. Any offers following this are fed back to the client with my recommendations how to proceed.
Once instructions to proceed are received, I arrange for the tenancy documents and other compliance documents ahead of the tenancy starting. As well as cleaners & schedule of condition. following receipt of first months rent & deposit, I meet them on the term commencement date with keys.
I then update our property terrier system
What do you need to serve prior to a tenancy starting?
How to Rent Guide
Information leaflet on the Tenancy Deposit Scheme
TDS certificate if already received & registered
Draft AST including prescribed information
EPC
EICR
Landlord Gas Safety Certificate
Property schedule of condition if already received
What are MEES regulations?
They are a requirement for landlords to ensure that prior to letting a property they have a valid EPC, with a grade E or better, or exemption registered
When did properties need to comply with MEES regualtions?
For new tenancies from 1st April 2018 and existing tenancies form 1st April 2020
What are the changes to EPC’s?
The government has proposed to change the minimum band from an E to a C, from 2025 for new tenancies and 2028 for existing
They have also proposed to increase the cost cap for improvement works to £10,000 from £3,500, before an exemption can be registered
They have also proposed to increase the penalty for not having an EPC, from £5,000 to £30,000
When do you need to get an EPC?
On a trigger event such as re-letting or sale
When do properties need to comply with for MEES regulations?
For new tenancies from 1st April 2018 and existing tenancies form 1st April 2020
What are the EPC exemptions?
- ‘All relevant improvements made’ exemption - if you have already spent £3,500 and the property is still not an E grade
- ‘High Cost’ exemption - if the first recommended improvement would cost over £3,500
- Wall Insulation exemption - if the only recommendations are wall insulation. And a building surveyor has said this would negatively impact the fabric of the building
- Third Party Consent exemption - To undertake improvements you need third part consent which can not be reasonably obtained
How do you undertake right to rent checks?
I find out everyone over 18 who will be living at the property.
I will then ask to see their original ID documents and them in person. I would scan a copy in and save on file. Stating the words ‘certified to be a true copy of the original’ and signed and dated.
When were right to Rent Act checks introduced?
They were intorduced through the Immigration Act 2014 and made a criminal offence under the Immigration Act 2016
How long does your data stay on your file for?
We aim to keep information for a period of six years
What do you need to ensure when preparing particulars?
They are clear concise and not misleading.
Consumer Protection from Unfair Trading Regulations 2018
Estate Agents Act 1979
Who can undertake works under the gas safety regualtions?
A gas safe registered engineer
What legislation covers gas appliances in properties?
The Gas Safety (installation and use) regulations 1998
Why did you use the words subject to contract?
It means that there is no intention for the contract to be legally binding at this stage
How did you document the fence repairs in the licence?
I accompanied it in a side letter to the agreement which he also signed
What development potential was then Hampshire?
There was potential for a 2 bed house scheme, therefore we wanted to retain the land should this be granted
What works were required to relet?
The property needed internal decorations, a new carpet throughout, also the Kitchen was quite pokey and I proposed opening up the room by taking out a non load bearing internal wall
What works did you propose to improve the property to a C band?
Low Energy lighting
Increase loft insulation
Double glazing throughout
Internal wall insulation on external walls
Why would the works increase capital value?
I was specifically referring to the Kitchen improvement works, which would be reflected in the property price.
I am also aware that properties with better EPC’s are likely to be more attractive to purchasers because of lower bills and better compliance
