Morfitt Shaw Estate & Letting Agents Leeds

<body> <p>This page uses frames, but your browser doesn't support them.</p> <p align="center"><img border="0" src="generalimages/landlord.jpg" width="165" height="204"></p> <p><b><font size="6" face="Arial">Advice for landlords</font></b></p> <h1><font face="Arial" size="4">Introduction</font></h1> <p class="MsoNormal"><font size="3" face="Arial">Attracting the right tenants, achieving high occupancy rates and good capital growth are the keys to being a successful landlord. We offer a no let, no fee, turnkey service that has let over 200 properties since we opened in 2004.</font></p> <p class="MsoNormal"><font size="3" face="Arial">Using the right letting agent is very important. You can lose more than £5,000 a year by having a property empty through rent loss, council tax payments, insurance, dilapidation and security measures. There is also the risk of vandalism and squatting.</font></p> <p class="MsoNormal"><font size="3" face="Arial">As a landlord, you should not expect your letting agency to charge you a "marketing" or "registration" fee. This is normally around £50. At Morfitt Shaw we make no charge to place your property on the market.</font></p> <p class="MsoNormal"><font size="3" face="Arial">Most letting agencies will try to tell you that they will not enter into multi-agency agreements. In practice, when pushed, they do market properties whilst they are also being marketed by other agencies. Of course, it is in your interest to have your property as widely circulated as possible. At Morfitt Shaw we will always allow multiple listings of your accommodation.</font></p> <p class="MsoNormal"><font face="Arial">Many letting agents are in fact extensions of major landlords' own property operations. They often have a portfolio of their own properties available which receive priority treatment to ensure they are let more quickly than yours. We can confirm that Morfitt Shaw do not own any properties available to let - there is no conflict of interest.</font></p> <p class="MsoNormal"><font size="3" face="Arial">Our minimum fee is just £250 plus VAT. As far as we are aware, this is the lowest commission in north Leeds.</font></p> <p class="MsoNormal"><b><font size="3" face="Arial">Property management agencies – did you know?<o:p> </o:p> </font></b></p> <p class="MsoNormal"><font size="3" face="Arial">We provide a ‘let only’ or ‘tenant find’ service only. We do not perform property management.</font></p> <p class="MsoNormal"><font size="3" face="Arial">Property managers often receive commissions from their panel of tradesmen. So, not only do you pay the agency far more to have your property managed, but you may also receive unrealistic charges for repair and maintenance work, on which the agency is itself commissioned by the tradesman.</font></p> <p class="MsoNormal"><font size="3" face="Arial">Many agencies produce statements one month in arrears, and similarly, payments are made to you a month late.</font></p> <p class="MsoNormal"><font size="3" face="Arial">H.M. Inspector of Taxes requires a return of all managed properties from property management companies.</font></p> <p class="MsoNormal"><font size="3" face="Arial">Property management agencies require written confirmation of the lender’s authorisation to let your property.</font></p> <p class="MsoNormal"><font size="3" face="Arial">When a tenant extends their initial fixed term or rolls into a statutory periodic tenancy, the property manager still receives commission on this extension. With our tenant finding service there is no further commission to pay beyond that paid for the initial fixed term. </font></p> <h2><font face="Arial" size="4">How we find you a tenant</font></h2> <h1><font size="3" face="Arial">Appraisal, advice and guidance</font></h1> <p class="MsoNormal"><font size="3" face="Arial">We will conduct an initial, no obligation valuation and assessment of your property. We offer comparable evidence to substantiate our valuations. If required, we can also advise on changes which may be desirable, in order to improve the presentation of the property and obtain a better rent or a speedier let.</font></p> <p class="MsoNormal"><font size="3" face="Arial">We give advice on whether to market as furnished or unfurnished, and information on the legal requirements for furnishing, gas & electric safety checks, etc.</font></p> <p class="MsoNormal"><font size="3" face="Arial">We gather all relevant information to advertise your property including availability, whether you will accept smokers, pets or children, storey, number of bedrooms, parking or garaging, viewing arrangements, and whether utility bills, council tax and / or the TV licence is included in the rent.</font></p> <h1><font size="3" face="Arial">Effective marketing:</font></h1> <p class="MsoNormal"><font size="3" face="Arial">Free advertising of your property in the local press</font></p> <p class="MsoNormal"><font size="3" face="Arial">High profile, up to date website</font></p> <p class="MsoNormal"><font size="3" face="Arial">Post based mailing lists</font></p> <p class="MsoNormal"><font size="3" face="Arial">Database of over 500 active searchers derived from hundreds of recent inbound calls and emails</font></p> <p class="MsoNormal"><font size="3" face="Arial">Regular email broadcasts to our prospect database</font></p> <p class="MsoNormal"><font size="3" face="Arial">Full colour rental lists given out to all prospective tenants</font></p> <p class="MsoNormal"><font size="3" face="Arial">Internet advertising on over twenty internet lettings portals</font></p> <p class="MsoNormal"><font size="3" face="Arial">24 hour fax facility</font></p> <p class="MsoNormal"><font size="3" face="Arial">Distinctive ‘TO LET’ board</font></p> <p class="MsoNormal"><font size="3" face="Arial">We offer accompanied viewings with a skilled professional. We advise you immediately of any tenancy application.</font></p> <p class="MsoNormal"><font size="3" face="Arial">Excellent relations and approved status with Leeds’ largest employers, relocation agencies, accommodation bureaus. We mail their key contacts regularly.</font></p> <p class="MsoNormal"><font size="3" face="Arial">Office open seven days a week, including 9.00-5.30 on Saturday, and 1.00-3.00 on Sunday, so we can service all enquiries for your property, whether your prospective tenant lives locally or is just visiting Leeds for the weekend.</font></p> <p class="MsoNormal"><font size="3" face="Arial">Landlords expect to be able to reach their agents when they need to. We respond quickly to queries and always return calls as promptly as possible.</font></p> <p class="MsoNormal"><font size="3" face="Arial">There is NO additional charge to clients for this advertising as the costs are included within our fees.</font></p> <h1><font size="3" face="Arial">Stringent referencing and credit checks</font></h1> <p class="MsoNormal"><font size="3" face="Arial">We use an independent credit reference agency, Homelet to conduct our credit checks. We vet candidates by interviewing for suitability, and assess and credit search guarantors when needed.</font></p> <p class="MsoNormal"><font size="3" face="Arial">Several references are taken up including previous landlords, employers, college tutors, electoral roll, etc. We take the tenants’ national insurance numbers. We photocopy the tenants’ photo ID ie. driving licence or passport, to verify their identity, and obtain copies of proof of address and a recent payslip.</font></p> <h1><font size="3" face="Arial">Tenancy agreements</font></h1> <p class="MsoNormal"><font size="3" face="Arial">We prepare the Assured Shorthold Tenancy (AST) agreement in line with current legislation, commencing with a minimum six month and maximum<span style="mso-spacerun: yes">  </span>three year term. This contract can be tailored to meet your individual needs and preferences.</font></p> <p class="MsoNormal"><font size="3" face="Arial">All listed tenants over 18 years of age sign the document. We sign on your behalf.</font></p> <p><b><font face="Arial" color="#000000" size="3">The tenancy deposit law</font></b></p> <p class="MsoHeader" style="tab-stops:36.0pt"><font face="Arial" size="3"><span style="mso-bidi-font-size: 10.0pt; mso-bidi-font-family: Arial">From 6 April 2007, all deposits (up to the level of £25,000 tenancy value) taken by landlords and letting agents for Assured Shorthold Tenancies in England and Wales, must be protected by a tenancy deposit protection scheme.<o:p></span> Full information is shown on these websites:</font></p> <p><a href="http://www.direct.gov.uk/tenancydeposit" target="_top"><font size="3" face="Arial">www.direct.gov.uk/tenancydeposit</font></a></p> <p><font face="Arial"><a href="http://www.depositprotection.com" target="_top">www.depositprotection.com</a></font></p> <p><a href="http://www.tds.gb.com" target="_top"><font face="Arial">www.tds.gb.com</font></a></p> <p><font face="Arial"><a href="http://www.landlords.org.uk" target="_top">www.landlords.org.uk</a>  or  <a href="http://www.mydeposits.co.uk" target="_top">www.mydeposits.co.uk</a></font></p> <p class="MsoHeader"><font face="Arial" size="3"><span style="mso-bidi-font-size: 10.0pt; mso-bidi-font-family: Arial; color: red">Within 14 days</span><span style="mso-bidi-font-size: 10.0pt; mso-bidi-font-family: Arial"> of receiving a deposit the landlord must give the tenant the details about how their deposit is protected including:<o:p> </o:p> </span></font></p> <p class="MsoHeader"><font face="Arial" size="3"><span style="mso-bidi-font-size: 10.0pt; mso-bidi-font-family: Arial">1. The contact details of the tenancy deposit scheme selected <o:p> </o:p> </span></font></p> <p class="MsoHeader"><font face="Arial" size="3"><span style="mso-bidi-font-size: 10.0pt; mso-bidi-font-family: Arial">2. Landlord contact details <o:p> </o:p> </span></font></p> <p class="MsoHeader"><font face="Arial" size="3"><span style="mso-bidi-font-size: 10.0pt; mso-bidi-font-family: Arial">3. How to apply for the release of the deposit <o:p> </o:p> </span></font></p> <p class="MsoHeader"><font face="Arial" size="3"><span style="mso-bidi-font-size: 10.0pt; mso-bidi-font-family: Arial">4. Information explaining the purpose of the deposit <o:p> </o:p> </span></font></p> <p class="MsoHeader" style="tab-stops:36.0pt"><font face="Arial" size="3"><span style="mso-bidi-font-size: 10.0pt; mso-bidi-font-family: Arial">5. What to do if there is a dispute about the deposit<o:p> </o:p> </span></font></p> <p class="MsoNormal"><font face="Arial" size="3"><b>Alternatively, to avoid the paperwork of the deposit schemes, many landlords are making their rents payable two months in advance to protect the final month’s rent, whilst not taking a bond.</b></font></p> <p class="MsoNormal"><font face="Arial" size="3">The first two months' rent is collected before we hand over the keys to the tenant. We subtract our fees and VAT, and pass the balance to you by cheque. Rent is collected monthly in advance by standing order direct to the landlord's account to avoid delays. We would need your account number, name and sort code to set up the standing order.</font></p> <h1><font size="3" face="Arial">General advice on letting your property</font></h1> <p class="MsoNormal"><font size="3" face="Arial">It is usual to issue a set of keys to each tenant signing and listed on the AST.</font></p> <p class="MsoNormal"><font size="3" face="Arial">The majority of houses we deal with are offered unfurnished, but usually with carpets, curtains, light fixtures and major kitchen white goods provided. Most flats are fully furnished.</font></p> <p class="MsoNormal"><font size="3" face="Arial">Any soft furnishings (chairs and beds etc.) that are left in the property, must comply to fire regulations, and a label clearly stating so should be attached. If not, then the furnishings must be removed from the property. They cannot be stored at the rented address.</font></p> <p class="MsoNormal"><font size="3" face="Arial">As landlord you are still responsible for the building and accordingly, the buildings insurance. Please note that your normal building insurance will not cover you for letting. It will need to be adapted or a specialist letting policy obtained. We can help you source a competitive quote.</font></p> <p class="MsoNormal"><font size="3" face="Arial">We can also offer your tenants competitive insurance via our link with 'HomeLet', a leading national provider of tenant insurance policies.</font></p> <p class="MsoNormal"><font size="3" face="Arial">If appropriate, you must ensure BT are aware that you no longer require a service at the property.</font></p> <p class="MsoNormal"><font size="3" face="Arial">It is a legal requirement for all electrical appliances to be safe. We also recommend that you install a smoke alarm on each floor of your property, and put a fire blanket in the kitchen.</font></p> <p class="MsoNormal"><font size="3" face="Arial">It is also a legal requirement that every gas appliance and gas central heating system<span style="mso-spacerun: yes">  </span>be inspected on an annual basis. They have to meet strict conditions and a safety certificate must be issued.</font></p> <p class="MsoNormal"><font size="3" face="Arial">You can ask British Gas (who charge per item inspected) or a private gas engineer (some of whom have a flat rate, regardless of the number of appliances). Remember for an inspection to be complete, the piping must also be inspected and the person conducting the inspection MUST be CORGI registered.</font></p> <p class="MsoNormal"><font size="3" face="Arial">If the property you wish to rent is subject to a mortgage, then the mortgage lender should be informed that you intend to let the property. This should be done before a tenant moves into the property. Gaining permission from the building society usually depends upon the mortgage account not being in arrears. Some lenders do ask to see a copy of the lease the tenant will be asked to sign. We will happily provide them with this. The lender may make a small charge to cover administration costs.</font></p> <p class="MsoNormal"><font size="3" face="Arial">If you have a large garden provide the tenant with tools to help ensure its upkeep.</font></p> <h1><font size="3" face="Arial">Assured shorthold tenancies – the basics</font></h1> <p class="MsoNormal"><font size="3" face="Arial">You have a guaranteed right to get your home back after six months if you need to.</font></p> <p class="MsoNormal"><font size="3" face="Arial">You can charge a "market rate" for rent. This is the going rate for a similar property in the area.</font></p> <p class="MsoNormal"><font size="3" face="Arial">You can get your home back if your tenant owes you at least two months rent.</font></p> <p class="MsoNormal"><font size="3" face="Arial">You can evict tenants who cause a nuisance to local people.</font></p> <p class="MsoNormal"><font size="3" face="Arial">You are entitled to end the tenancy without giving a reason at any time after six months.</font></p> <p class="MsoNormal"><font size="3" face="Arial">You may need a House of Multiple Occupation (HMO) licence. If you are not sure whether you need an licence for your property, you should contact <a href="http://www.leeds.gov.uk/Housing/Multiple_occupancy_homes/page.aspx"> Leeds City Council</a> for advice.</font></p> <p class="MsoNormal"><font size="3" face="Arial">You should also be aware of the <a href="http://www.communities.gov.uk/index.asp?id=1152820" target="_top">Housing Health and Safety Rating System (HHSRS)</a> which can prove very costly to landlords.</font></p> <p><font size="3" face="Arial">The sites at the bottom of the page give some excellent free advice for landlords. Click on the logos.</font></p> <p><font size="3" face="Arial"><b>Tax</b></font></p> <p><font size="3" face="Arial">The rent after deducting allowable expenses will be subject to income tax at the landlord's highest rate, but with careful planning and good advice it is possible to minimise tax exposures.</font></p> <p><font size="3" face="Arial">Allowable expenses include:</font></p> <p><font size="3" face="Arial">Mortgage interest</font></p> <p><font size="3" face="Arial">Ground rent and maintenance charges, if leasehold</font></p> <p><font size="3" face="Arial">Letting and management fees</font></p> <p><font size="3" face="Arial">Buildings, contents, and rental warranty insurances</font></p> <p><font size="3" face="Arial">Council tax whilst vacant</font></p> <p><font size="3" face="Arial">Repair and maintenance of the property and contents, but not the cost of improvements</font></p> <p><font size="3" face="Arial">Water and sewerage rates unless charged to tenants</font></p> <p><font size="3" face="Arial">Legal expenses, but not those related to the purchase or sale of the property</font></p> <p><font size="3" face="Arial">Stamp duty on tenancy agreements</font></p> <p><font size="3" face="Arial">Accountant fees</font></p> <p><font size="3" face="Arial">And for furnished property...</font></p> <p><font size="3" face="Arial">The inland revenue will allow a deduction if the property is furnished, which is calculated as: rent minus water rates x 10%</font></p> <p><font size="3" face="Arial">Allowable expenses may only be claimed whilst the property is let or available to be let.</font></p> <p> </p> <p><b><font face="Arial" size="4">Calculating yield</font></b></p> <p><font face="Arial">Property investment is really about one thing and one thing only, getting the highest capital possible return on the initial capital invested - in simple terms, making as much money as possible. How you calculate the potential return on investment is very much open to discussion, but most investors base their calculations on rental yield. </font></p> <p><font face="Arial">When initially looking to invest in property, you are faced with the dilemma of which strategy to follow, cashflow or capital growth. Whichever you choose to base your investment on is dependent on many factors, such as age and available investment capital. For instance, you may be retired with available funds to buy a property outright, thereby aiming to create an income through the rental alone, or maybe you are in your 20s with just enough money for a deposit, in which case you would be looking for capital growth over a long period of time with the rent used to service the loan.</font></p> <p><font face="Arial"><b>Indicator</b></font></p> <p><font face="Arial">Of course, many people look for a mix of both cashflow and capital growth, but either way, one common denominator is essential to establish and that is the rental yield. The rental yield is one indicator of the overall potential of the investment. It will determine just how much cash flow the property will generate and therefore give you a clear idea of whether this would be enough to live on or whether there is enough to keep payments on the mortgage without having to "feed" the loan with your own money.</font></p> <p><font face="Arial">So what exactly is rental yield?</font> <font face="Arial">In its simplest form, rental yield is the market rent for property divided by its price.</font> <font face="Arial">Quite literally, this means the rental income generated by letting the property is expressed as a percentage of the purchase price. On average, in the UK today this figure stands at between 4.7% and 6%. So a property with a purchase price of £150,000 and an annual rent income of £7,500 would give a rental yield of 5% (£7,500 ¸ £150,000 x 100 = 5%) </font></p> <p><font face="Arial">It should be noted, that this figure is the <b>gross rental yield</b>. Of course, there are other costs associated with property investments such as service charges and insurances, and when these additional costs are taken into account you are left with the <b>net rental yield</b>. However, it is gross rental yield that investors are interested in. </font></p> <p><font face="Arial">The object of property investment is to maximise profit, and rental yield is a good way of working out the potential of the investment. Generally speaking, the higher the rental yield, the better the investment, although depending on your strategy as an investor (cashflow or capital growth), you will view this figure in a different way. </font></p> <p><font face="Arial">With cashflow, rental yield is a direct indicator of the income that you will expect to receive from the investment. However, a highly leveraged (i.e., mortgaged) capital growth strategy will be different and you are more likely to use this figure to establish the rental coverage on the loan repayments, as long term your profit will be generated by capital growth and not immediate cashflow. </font></p> <p><font face="Arial"><b>Rental coverage</b> is an indicator of how well the rental income will cover the loan repayments on the property. Most lending institutions like to see a coverage figure of around 125% (based on the maximum loan value) to make sure that the loan repayments can be met easily. However, many experienced capital growth investors are more than happy to purchase property with considerably lower rental coverage than the magic 125% if the potential exists for considerably stronger capital growth.</font></p> <p><font face="Arial"><b>Higher risk</b></font></p> <p><font face="Arial">This results in a situation of having to "feed" or "top up" the loan repayments to fill a shortfall in the rental income. Although this is a higher risk strategy, the returns can be much greater. This is true of many of the London regions where it is often not possible to get rental coverage of 125%, but capital growth potential is strong. Another factor that can have an impact on the rental coverage is just how you borrow money to start with. </font></p> <p><font face="Arial">If for example, you purchased your investment property with a repayment mortgage (where you pay the interest and a portion of the loan capital each month) your repayments would be higher than if using an interest only loan (where you repay just the interest each month without repaying any of the loan capital). This would cause your rental coverage figure to be skewed. So we can see that rental yield does not necessarily show the overall potential of the investment property, but it is certainly one indicator, and for this reason is considered a good starting point when looking at the viability of the property.</font></p> <p> </p> <p><b><font face="Arial" size="4">Useful links:</font></b></p> <p><font face="Arial"><a href="http://www.rla.org.uk" target="_top"><img border="0" src="logos/RLALogo.gif" width="125" height="90"></a></font></p> <p><font face="Arial"><a href="http://www.landlords.org.uk/" target="_top"><img border="0" src="logos/nlalogo.gif" width="380" height="50"></a></font></p> <p><b><i><font size="5" face="Arial"><a href="http://www.letlink.co.uk" target="_top">LETLINK</a></font></i></b></p> <p><a href="http://www.thelandlordsclub.co.uk/llcforum/" target="_top"><img border="0" src="logos/landlords_club.gif" width="206" height="58"></a></p> <p><a href="http://www.landlordaction.co.uk/" target="_top"><img border="0" src="logos/landlord_action.gif" width="404" height="38"></a></p> <p><a href="http://www.landlordzone.co.uk/" target="_top"><img border="0" src="logos/landlordzone.gif" width="249" height="70"></a></p> <p><font face="Arial"><a href="http://www.odpm.gov.uk/stellent/groups/odpm_control/documents/contentservertemplate/odpm_index.hcst?n=1298&l=3" target="_top"><img border="0" src="logos/odpm_logo.gif" width="176" height="90"></a></font></p> <p><a href="http://www.communities.gov.uk/index.asp?id=1152820" target="_top"><img border="0" src="logos/communities_local_gov.gif" width="174" height="66"></a></p> <p><font face="Arial"><a href="http://www.help4landlords.org/" target="_top"><img border="0" src="logos/nfrl.gif" width="460" height="62"></a></font></p> <p><font face="Arial"><a href="http://www.letting-network.com/" target="_top"><img border="0" src="logos/lettingnetwork.gif" width="292" height="49"></a></font></p> <p><font face="Arial"><a href="http://www.landlordlaw.co.uk" target="_top"><img border="0" src="logos/landlordlawlogo.gif" width="311" height="70"></a></font></p> <p><font face="Arial"><a href="http://www.residentiallandlord.co.uk" target="_top"><img border="0" src="logos/resilandlordlogo.gif" width="266" height="110"></a></font></p> <p><a href="http://www.anuk.org.uk/" target="_top"><img border="0" src="logos/anuklogo.gif" width="280" height="99"></a></p> <p><a href="http://www.leeds.gov.uk/business/business%20advice,%20support%20and%20grants/advice%20for%20private%20landlords/menu.aspx?style=" target="_top"><img border="0" src="logos/LCC.gif" width="277" height="121"></a></p> <p><font face="Arial"><a href="http://www.corgi-gas-safety.com/section_gas_law/your_rights_landlords.asp" target="_top"><img border="0" src="logos/corgilogo.gif" width="62" height="89"></a></font></p> <p><font face="Arial"><a href="http://www.therentservice.gov.uk/" target="_top"><img border="0" src="logos/therentservice.gif" width="231" height="58"></a></font></p> <p><a href="http://www.therentservice.gov.uk/corporate-publications/local-reference-rents/" target="_top"><font face="Arial" size="4"><b>Local reference rents</b></font></a></p> <p> </p> <p><font face="Arial"><a href="http://www.rpts.gov.uk/" target="_top"><img border="0" src="logos/resproptribservice.jpg" width="299" height="73"></a></font></p> <p> </p> <p><font size="3" face="Arial"><b><a href="https://www.possessionclaim.gov.uk/pcol/" target="_top">Her Majesty's Courts Service, Possession Claim Online service</a></b></font></p> <p> </p> <p><font face="Arial"><a href="http://www.ihos.org.uk/" target="_top"><img border="0" src="logos/housing_ombudsman.gif" width="184" height="72"></a></font></p> <p> </p> <p><font face="Arial"><a href="../propertysearch.asp" target="_top">Search by £</a>      <a href="../salesmap.htm" target="_top">Search by location</a>          <a href="Sellingahouse.htm" target="_top">Selling?</a></font></p> <p><font face="Arial"><a href="../default.htm" 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