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Tuesday, 18 April 2017

Guidelines on Property Letting Management

When you own a house or building, and you want to lease or rent it out, there are some things that you should consider in order to be in line and avoid circumstances that will cause conflicts with either the potential clients or the authorities


Inform your mortgage company

Always keep the financiers in the loop on your intentions. You may actually require their input in drafting up an agreement with the future clients. Depending on the company, you may require to include some information on the tenancy agreement that reflects the situation of your mortgage.

Lease to another tenant

Supposing you are also a tenant, and want to sublet, ensure that the agreement you have with the owner allows this. Check it and see if there is any clause or condition set for such occasions. If they are unclear, get in touch with the owner and inform them of your intention. Get an official confirmation of consent.

Security

It is important then to remember that you have to go through your policy and find out if it also includes tenants and their belongings. Also ensure that you get in touch with your insurance agency and inform them of your intention to lease or rent the property. It may call for you to revise the policy to include the additions or it's just a matter of updating your agents in order to be covered.

Payment of bills

Bills and service fees should be paid in time. It is your duty to put in place a system to ensure they are paid in time. Most institutions have facilities in which once the account receives money, it debits the given account automatically.

Taxes

The tenants are liable to taxation. As the landlord, notify the authorities of the change of payers and right details. In case the house is vacated, the landlord bears the charges. There is a difference in paying the taxes in that furnished houses are charged 50% of the amount after being vacated while a totally empty house is charged the same only after staying empty for 6 months and then is charged the same rate.


Keep an inventory

Records come in handy when you require repairing, renovating or charging for a particular item. Keep updated records of the house condition and its belongings. Ensure that with the tenants knows the condition before they move in and should leave them exactly the same way.

Payment of income tax

All landlords are obligated to pay income taxes by law. Even for non residents, unless you are exempted, in which case you require a certificate to prove it, you should ensure your agents pay it quarterly.

Follow set gas and appliances regulations

According to these regulations, regular inspections should be done in all tenant houses and a bill of health certificate issued, a copy of which remains with the tenant. This should be done by a certified engineer.

Electrical appliances

The regulations published in 1994 also require regular physical inspections of the electrical appliances by a certified professional to ensure safety.


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