Knight Frank Guide to Letting : simplebooklet.com

As a people-ﬁrst business, above all else we oﬀer you full access to highly qualiﬁed and motivated professional tenants, looking to move into a property just like yours.The combination of our local and global networks gives you unparalleled reach in an increasingly international marketplace, ensuring you minimum void periods and sourcing the highest quality tenant for your property. Our Residential Corporate Services team specialises in appealing to those with particular rental requirements, such as corporates, students or sports and media professionals.Your letting experience need not end when your tenant receives the keys; our highly regarded Property Management team can look after every aspect of the day to day running of your letting, while Knight Frank Interiors can help your letting fulfill its full potential. Knight Frank Finance meanwhile, offers landlords of all sizes access to financial products to fund their letting for the best rate. Which service is best for youOur guide to lettingWhether you’re a ﬁrst-time landlord or multi-property investor, Knight Frank covers every aspect of the letting experience, so you can maximise the return on your investment, without worry. We do this by placing you at the heart of this journey, tailoring how we let your property to suit your needs.From starting up, to tenancy renewals and property management we have in-depth guides that give you an overview of what to expect.

Page 3

Page 4

The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020These regulations require landlords to ensure that all fixed electrical installations are in good condition and meet modern safety standards. They also impose an obligation on landlords to have inspections and testing performed by a qualified electrician at least every five years. The Electrical Installation Condition Report must be provided to tenants. New tenants must be given a copy of the report before they move in.Landlord Repairing ObligationsSection 11 of the Landlord and Tenant Act 1985, as amended by Section 116 of the Housing Act 1988, places an obligation on landlords to keep in repair and proper working order the installations for the supply of water, gas, electricity and sanitation including basins, sinks, baths and sanitary conveniences and the installations of space heating and heating of water. Under the Homes (Fitness for Human Habitation Act) 2018, a landlord must ensure that a property (and any common parts he has an interest in) is fit for human habitation at the beginning and for the duration of the tenancy. This includes (but is not limited to) good repair, ventilation and drainage, freedom from damp, and freedom from any hazard that could harm the health or safety of the tenant.Safety Standards for Internal Blinds and CurtainsAll blinds and curtains which are operated with a cord or chain must comply with current safety standards. Legally, all new blinds and curtains must have built-in safety systems. Blinds and curtains that are already fitted to a property must be made safe or replaced. Further information can be found at www.bbsa .org.ukThe legal regulationsBelow we’ve highlighted some of the key legislation that applies to landlords and their properties. Our team will be able to tell you more about these regulations and what action you need to take.HEALTH AND SAFETYThe Electrical Equipment (Safety) Regulations 1994You are also responsible for ensuring that all electrical appliances in the property are safe, which includes that they should carry a CE marking and have written instructions for operation; we strongly recommend that an annual portable appliance test is carried out. Cabling, fuses and plugs must also be inspected and replaced where necessary with the correct rating for that particular appliance in order to comply with the Plugs and Sockets etc. (Safety) Regulations 1994.The Furniture and Furnishings (Fire) (Safety) (Amendment) Regulations 1993These regulations apply to all rented property. It is a criminal offence to supply upholstered furniture containing foams that cannot be proven to comply with the above Regulations. The Regulations require that specified items must be match resistant, cigarette resistant and carry a permanent label. New furniture manufactured since 1 March 1989 and sold by a retailer after 1 March 1990 is required to comply and carry labels to this effect. Where there are no labels, the landlord will need to contact the manufacturer or retailer for confirmation. If there is any doubt, the items should be replaced. Furniture purchased outside of the UK will not comply.The Gas Safety (Installations and Use) Regulations 1998Your attention is drawn to these regulations which impose obligations on any person who owns a gas appliance, pipework or installation in a property let by them:a. to ensure that such appliance, pipework or installation is maintained in a safe condition so as to prevent risk of injury to any person.b. to ensure that such appliance, pipework or installation is checked and that an appropriate safety certificate is issued at intervals of not more than 12 months by an approved registered contractor.c. to ensure a copy of the Gas Safety Record is given to the tenant prior to the commencement of the tenancy and annually thereafter and a record is kept of this.The tenancy cannot be permitted to commence without the appropriate Gas Safety Record. The landlord must also ensure annual servicing is carried out, in addition to the annual Gas Safety Record.The Smoke and Carbon Monoxide Alarm (England)Regulations 2015 and Smoke and Carbon MonoxideAlarm (Amendment) Regulations 2022Under these Regulations, smoke alarms must be installed on every storey of the property (including half-landings), and a carbon monoxide alarm next to all fixed combustion appliances (excluding gas cookers); we would however recommend putting a carbon monoxide alarm next to gas cookers. The Landlord must ensure all alarms are in working order on day one of the tenancy and make a record of this. The Landlord is also obliged to ensure the alarms are repaired and replaced once informed and found they are faulty. Regulations 1991 it is the law that all newly built premises from June 1992 must have mains fitted smoke alarms with battery backup.Legionnaires’ Disease Risk AssessmentIn order to comply with the Health and Safety Executive’s Code of Practice, landlords are strongly advised to carry out a risk assessment at their property prior to letting, especially if there are open water tanks, cooling systems or a swimming pool.Safety Standards for Balconies and TerracesIt is the landlord’s responsibility to ensure that any balcony or terrace meets the Health and Safety Executive’s standards, and that any railings or balustrades are kept in good repair.COMPLIANCEMoney Laundering Regulations 2007Knight Frank is obliged to comply with all legislation in relation to money laundering. We have controls in place which require us to verify the identity and address of all clients before accepting their instructions.Consumer Protection from Unfair Trading Regulations 2008During the marketing of a property, Knight Frank is legally obliged to ensure that all information is accurate, not misleading and does not omit material information. As part of this obligation, you must make us aware of any matters which may be material to a tenant.Energy Performance Certificates (EPC)An EPC is valid for ten years and it is the landlord’s responsibility to ensure it is available to a prospective tenant. All rented property (while is it being marketed, and for the duration of the tenancy) must have a minimum energy performance rating of E. The regulations also state that a tenant will have the right to ask for energy efficiency improvements in privately rented properties, and this cannot be unreasonably refused by the landlord.

Page 5

Page 6

The legal regulations cont.Retaliatory EvictionsUnder the Deregulation Act 2015, measures were introduced to stop landlords evicting tenants who reported issues with a property, rather than fixing them. Under an AST, if a poor state of repair is reported to a landlord and a reasonable outcome is not achieved within 14 days, the tenant may inform the Council who could then stop the landlord serving a Section 21 Notice (to end the tenancy) for six months, as well as issuing an improvement notice.Immigration Act 2014It is a legal requirement under the above Act for landlords to meet and check necessary documents for all adult occupants living at the property to ensure they have the Right to Rent in England. Follow-up checks will also be required if the person has a time-limited right to live in England.Landlord LicensingIt is the landlord’s responsibility to check with the relevant local authority whether it is necessary to obtain a licence to let the property. If so, it is generally a requirement that the licence must be applied for before a tenancy can be allowed to start.FINANCIALTaxIn accordance with the Finance Act 1995. We would strongly recommend that all overseas landlords apply for self assessment. For those who have not, we are required by law to deduct the tax at the basic rate from the net rental income and pay this on a quarterly basis to HMRC and charge a fee. As we are not qualified tax accountants, we would therefore recommend that you take professional advice regarding these Regulations.DepositsWe will hold the deposit on all tenancies as stakeholder. For ASTs, it is a legal requirement to register the deposit with an approved deposit protection scheme. We are a member of the Tenancy Deposit Scheme (TDS) and will register the deposit on behalf of the tenant.Your agent will be able to talk you through the various types of tenancy and which is most suitable for you. These are the most common options:Assured Shorthold Tenancy (AST)Created by the Housing Act 1988.a. the property must be let as a separate dwelling.b. the tenant must be an individual and must occupy the property as their only or principal home.c. the landlord must serve a Section 21 Notice giving a minimum of two months’ notice to gain possession.d. the tenancy can be for any specified period either for a fixed term or periodic (open-ended) from the outset (though a court cannot make a possession order to take effect earlier than six months from the commencement of the tenancy, even if the term granted was for a shorter period).e. the rent must not exceed £100,000 per annum.f. the deposit must be protected with an approved deposit protection scheme. In order to serve a Section 21 Notice, there must be no outstanding repairs, the tenant must have been provided with the prescribed information, certificate and leaflet relating to the relevant deposit protection scheme, the Government’s “How to Rent” guide, a copy of the EPC and a current Gas Safety Record, and the tenant must not have been charged any fees prohibited under the Tenant Fees Act 2019.Our lettings experts are more than happy to talk you through the various types of tenancies that exist.Types of tenancyContractualContractual tenancies fall outside the Housing Act 1988 and the parties are bound solely by the terms of the tenancy agreement which should contain all the necessary provisions within it. It is most commonly used when the tenancy is to an individual and the rent exceeds £100,000 per annum.Short-term lettingA short-term let will be a tenancy less than 6 months, we can advise you which of the above tenancy agreements will be appropriate. You must check with your freeholder and the relevant Local Authority that such a letting is permitted.

Page 7

Page 8

Pre-tenancy checklistThere’s a lot to remember when preparing your property for a tenancy – use this list to tick oﬀ the essentialsMoving in Professional clean organised Garden put in seasonal order All appliances in working order Appliance manuals obtained and left in property Full sets of keys arranged Inventory check-in organisedFinancials & Utilities Mortgage company advised Insurance company advised Non-Resident Landlord form completed and sent to HMRC (if overseas landlord) Post redirected Working telephone line installedSafety, Security & Compliance Electrical Installation Condition Report obtained Gas Safety Record obtained Portable Appliance Test obtained Smoke alarms and carbon monoxide detectors installed and tested Burglar alarm system (if any) maintained and serviced Blind and curtain cords checked Furniture fire labels checked Licence obtained (if necessary) Head Lease checked Legionnaires Risk Assessment completed (if requested) 24-hour emergency contact details in placeWhich service is best for youLettings Service onlyLettings & Management Service combinedMarketing the property Y YArranging references on the tenant Y YDrawing up tenancy agreement Y YCollecting the rent Y YInventory check in and check out Y YArranging safety checks N YTransferring utilities N YPayment of service charge and other landlord outgoingsN YRoutine maintenance N YRepairs N YProperty visits during tenancy N YHolding keys on landlord’s behalf N Y24-hour emergency cover N YNegotiating deposit return at end of tenancyN Y

Page 9

Knight Frank Guide to Letting

Page 1

Page 2