Landlords' Fees

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Accounts

Estates East will ensure that rent is paid on the due date and passed on to you as quickly as possible. They prepare statements of rental income and expenditure every month to ensure that you have full information for yourself and for your tax return. The tenant pays rent into the Estates East client account and this is then transferred into your account each month.

Inspections

We carry out routine visits to the property during the term of the tenancy on our fully managed properties.

Extending or Terminating the Tenancy

Many tenants extend their tenancy and in some cases for several years. If no notice is served on the tenant, the tenancy automatically continues on a statutory periodic basis.

The landlord can terminate the tenancy at the end of the initial tenancy period or at any time thereafter by giving the tenant a minimum of two months' notice on the rental due date. The tenant can either leave on the last day of the initial tenancy period or can give one month's notice at any time thereafter.

Safety Regulations

The following information is intended only as a guide for landlords and should in no way constitute a detailed interpretation of the complete Regulations. Whilst the regulations might appear onerous, they are designed to ensure the safety of the property and tenants. Landlords should note that the maximum penalty for non-compliance with these regulations is a fine of £5,000 or 6 months imprisonment.

Energy Performance Certificates

Energy Performance Certificates (EPC) have been introduced to help improve the energy efficiency of buildings. Landlords need to provide an EPC with an E+ rating, which will be valid for ten years, to prospective tenants, the first time they let or re-let a property.

Smoke Detectors

All new homes (built after June 1992) must be fitted with mains-operated smoke detectors. There are no specific regulations governing older buildings. However Estates East strongly recommend that at least one smoke alarm is fitted to each floor of your property.

Taxation of Rental Income

Overseas landlords are responsible for obtaining their own exemption certificate and the appropriate forms should be submitted as early as possible as they can take several weeks to process. The Team at Estates East can advise you on how to sort this out.

Estates East advise arranging the inspection before a tenant is found, to avoid delaying the start of the tenancy. Breach of this regulation can result in heavy fines or even imprisonment so tenants are not allowed to occupy a property without a certificate.

UK & Non-UK Landlords

If you are a landlord resident in the UK, your net income from your investment property is subject to income tax. The level of tax depends on your other income. If you are already a higher-rate taxpayer, tax will be payable at the higher rate. The normal method of reporting your taxable assets to the Inland Revenue is a Self-Assessment Tax Return form. We strongly advise that you take independent advice from a tax specialist. The following deductions can be made from your rental income to arrive at the net income, which is subject to tax:

• Interest on mortgage
• Property repairs
• Letting and management charges
• Buildings insurance
• Ground rent
• Service charges

Non-UK Resident Landlords

The Non-Resident Landlord (NRL) scheme is for taxing the UK rental income of persons whose “usual place of abode” is outside the UK. If you are treated as a non-resident Landlord you still have to pay UK income tax on rental income from your UK property. Unless the landlord can provide Estates East with a current Inland Revenue exemption certificate, the law obliges us to deduct basic rate tax from rents received and for us to account to Inland Revenue on a quarterly basis. Any Landlord named on the tenancy agreement, when living overseas, requires a separate exemption certificate.

Estates East keeps a constant monitor on the above and updates landlords of any changes.

Any questions?