Though returns in the lettings market in London are extremely attractive, HMO property offers you as a Landlord an even more lucrative return on your investment.
However, the management of HMOs (Houses of Multiple Occupancy) can be particularly time consuming, with additional compliances and certifications to deal with in addition to the administration of perhaps 5 or 6 individual tenants.
Larger houses usually attract higher yields and these can be increased if the property is let on a room to room basis. Not only you
Whether you are letting a property for the first time, or already work with an existing property portfolio, we are able to provide unrivalled expertise in our market place, aiming to maximise returns on investment whilst exceeding your expectations on all levels of service.
With the let only service, the landlord would become solely responsible for any issues that arise following the commencement date of the tenancy.
The Let only service will provide you with the following benefits:
In addition to the Let only service, the full management also includes:
We will view the property initially to assess its rental value. At this point, we will answer any questions you may have and determine the most suitable service to meet your requirements. Also, we will be able to make recommendations where necessary that could potentially increase the rental value of your property. Our advice at this point is completely free and aimed at making sure you have a firm understanding of all your obligations before proceeding to let your property.
Once you have decided to appoint us as your agent, one of our representatives will visit the property in order to take some internal and external photographs. We shall use the photographs and the information we have collected to create an attractive advert, which we shall display whilst marketing your property.
In order to maximise property exposure, our website is updated daily and our properties are listed on market leading property portals.
Our highly trained and efficient staff will make sure that the best service is delivered to both the landlord and tenant.
As the lettings market becomes more and more competitive, it is important that the property is presented in the best way possible. Without this, the property could remain empty for longer as well as affect its rental value.
To help a rental property appeal to a wider market, we would suggest the following:
Arguably, the most important factor when letting the property is the prospective tenant. The whole success of letting depends on finding the right tenant. If an applicant wishes to proceed with a tenancy, we will assess their suitability.
The references aim to check that each tenant is creditworthy by for example checking for CCJ’s and arrears and obtaining employer, landlord and character references. Once references have been received, we will contact you to confirm the results of this and advise of the proposed checking in date.
All necessary legal paperwork, including an inventory, will be prepared and signed and any outstanding balances settled by the tenant before the tenancy commences.
The Gas Safety (Installation and Use) Regulations 1998 state landlords must ensure that gas appliances, fittings and flues are safe for the tenant’s use and that installation, maintenance and annual safety checks are carried out by a technician registered with the Gas Safety Register (which superseded CORGI on 1st April 2009).
The landlord must keep a record of the safety check for two years. They must issue a copy to each existing tenant within 28 days of the check being completed and issue a copy to any new tenants before they move in.
While there isn’t a legal obligation on landlords to have professional checks carried out on the electrical appliances, there is, however, an obligation to ensure that all electrical equipment is safe, under the Electrical Equipment (Safety) Regulations 1994, the Plugs and Sockets Regulations 1994, the 2005 Building Regulation – Part P, and the British Standard BS1363 relating to plugs and sockets.
All electrical certification should be carried out by an electrician who is registered with the National Inspection Council for Electrical Installers and Contractors (NICEIC). There are two types of electrical certificate:
The Furniture and Furnishings (Fire) (Safety) Regulations 1988 (as amended in 1989 and 1993) sets minimum fire resistance standards for domestic upholstered furniture, furnishings and other products containing upholstery that remain in a dwelling during the course of a tenancy.
These include any of the following which contains upholstery:
The Regulations do not apply to:
For items that do apply, a suitable label must be attached to the furniture in a prominent position so that the label will be clearly visible to a potential purchaser of the furniture and the wording on both sides can be read with reasonable ease. Examples of these labels can be seen above.
After 1st October 2015, the landlord must ensure that a smoke alarm is equipped on each storey of the premises on which there is a room used wholly or partly as living accommodation. Additionally, landlords must ensure that there is a carbon monoxide alarm fitted in any room that is used partly or wholly as living accommodation which also contains any appliance which burns or is capable of burning, solid fuel. This would include log and coal burning stoves and open fires.
With effect from 1st October 2008, all new tenancies required an Energy Performance Certificate. Their purpose is to determine how energy efficient homes are on a scale of A-G.
The most efficient homes - which should have the lowest fuel bills - are in band A. The certificate uses the same scale to define the impact a home has on the environment. Better-rated homes should have less impact through carbon dioxide (CO2) emissions. The average property in the UK is in bands D-E for both ratings.
As of April 2018, The Energy Efficiency (Private Rented Property)(England and Wales) Regulations 2015 mean that private non-domestic and domestic landlords must ensure that properties they rent in England and Wales reach at least an EPC rating of E before granting a tenancy to new or existing tenants.
The certificate includes recommendations on ways to improve the home's energy efficiency to save money and help the environment.
If the landlord wishes to rent their property to multiple occupants, it may mean that a licence is required before the property can be legally rented. Houses in Multiple Occupation are also referred to as “HMOs” and the purpose of the licensing scheme is to improve management and safety standards in this area of the rental sector.
It is now a mandatory duty for:
For further information on houses in multiple occupation and how this may affect you as a landlord, please speak to one of our representatives
The scheme requires UK letting agents to deduct basic rate tax from any rent they collect for non-resident landlords. If non-resident landlords don't have UK letting agents acting for them, it is their responsibility to inform the HMRC of rental income received and to pay any tax due. Non-resident landlords can apply at any time for approval to receive rent with no tax deducted.
If your intention is to reside abroad then we can offer the following services:
Under the provisions of the Housing Act 2004 every landlord or letting agent that takes a deposit for an Assured Short-hold Tenancy in England and Wales must join a Tenancy Deposit Scheme. The new regulations came into effect from April 6, 2007. The purpose of this regulation is to ensure good practice. The secondary purpose of the new regulations is to try and keep disputes between landlords and tenants out of the courts by encouraging Alternative Dispute Resolution.
In November 2006, three companies were awarded contracts by The Government to run Tenancy Deposit Schemes:
We are members of The Property Ombudsman (TPO) and abide by The Property Ombudsman Code of Practice. You agree that we may disclose information relating to the sale of the property to The Property Ombudsman and other regulatory bodies if you or the vendor have registered a complaint and The Property Ombudsman asks for it. You also agree that we may disclose your contact details to The Property Ombudsman if they ask for them, to assist in their monitoring of our compliance with the Code of Practice.
We are members of any client money protection service.
We are members of the Information Commissioner's Office (ICO).
From 25 May 2018, the Data Protection (Charges and Information) Regulations 2018 requires every organisation or sole trader who processes personal information to pay a data protection fee to the ICO and abide by the Data Protection Act 2018 Code of Practice.
ICO Registration Reference: ZA394490
Let only: 8.4% incl VAT (7% plus VAT)
Full Management: 12% incl VAT (10% plus VAT)
Oliver Stern Limited is a VAT registered company and therefore VAT is payable on all our agency fees including Landlord, Vendor and Tenant Fees.
VAT Number: 249981646