Minimum Condition of Property to Rent Out

[Carryon Regardless]

Something I haven't had to consider previously but I am now.

Aside from smoke detectors, annual gas inspection, electrical condition report, EPC, Keys, equipment instructions, How To Rent Guide, contact details, payment schedule, other I may have forgotten, I am considering what is our minimum requirement when providing a rental property.

My thinking is that we must provide adequate sanitation, working bathroom / kitchen, property must be safe and secure. Beyond that is there more?

I've a tenant in waiting, in England. There is cash ready for up front rent and deposit. I am considering citing in the AST that the tenant shall provide own floor coverings and I take a deposit of Nil. Is there an issue with that that I can't see?

I take a deposit, I give it the carpet fitter, I don't see it again as officially carpets have such a fast depreciation in our industry anyway.

I don't take the deposit, tenant pays for own floor coverings and the result is the same to my mind.

Meanwhile I'm not waiting for a carpet fitter to do his stuff, she is signed up faster.

[Grampa]

The deposit also covers for rent arrears and also encourages a tenant to leave a property in good order when they vacate. Also if they cant afford the deposit are they going to be able to afford and budget for the rent payments?

The question also comes to mind why would a tenant take a property without floor coverings unless they cant rent elsewhere or the rent is significantly lower.

Personally I like to make a property desirable as possible within a  budget to have a wider choice of tenants and therefore arguably better a quality tenant.  

[Carryon Regardless]

Thanks Grampa,

I think you missed the bit where the tenant has rent and deposit waiting. I am actually offered more as an upfront payment than I would normally request.

A carpet fitter was due last Friday, but no show. There is one measuring up today, hopefully. As seems to be common for some reason post lockdown trades are at a premium picking and choosing jobs and costing us more.

I view that if the tenant deals with the carpet situation,and pays, then there is some ownership and potentially more pride in the property. I do normally provide carpets and have seen lack of respect for them from day 1. 

My hope is that this will be the last tenant, of mine, in this property. To encourage continued tenure I am allowing rent at a knock down price. Essentially in 5 years when the mortgage ends  I aim to cash it in. After 5 years the choice is to renovate as needed, again, or dispose as is.

I intended to sell this one when renovated (nearly complete hence carpets), but with the Welsh clowns programming their 200% surcharge I'm thinking to reduce my Welsh exposure first. I have one mt there also.

What is / are our minimum requirements of a property that we rent on an AST?

Could we, for example, create another type of agreement that allows us to rent a bare shell for instance, that one I doubt but interesting non the less?

My googling has so far produced many pages of dross.

 

[Richlist]

I wouldn't dream of letting any of mine without a minimum of floorcoverings, curtains & blinds, lampshades & light fittings & white goods in the kitchen (minimum cooker & fridge). Some places also have fitted wardrodes, the odd mirror, bathroom cabinet & a vacuum cleaner. If previous tenants have left pictures I leave them on the wall.

Then there are the legal smoke alarm, co alarm and the not required but which I provide.....fire extinguisher & fire blanket.

I also provide an initial supply of rubbish sacks, a spare vac cleaner bag & a toilet roll & brush.

In a smart pad in Chelsea tenants would expect far more. 

In a slightly more downmarket area tenants will often accept virtually anything if that's all thats on offer to them.

We tend to be very, very, very picky with tenants cos we can &  it's to our benefit if we provide a home that is more attractive than the competition offer.

[Grampa]

I think you have covered all the documentation other than an inventory which isn't compulsory. Generally speaking any property that is rented out for residential purpose to an individual will default to an Assured Shorthold tenancy however you could choose to use an Assured tenancy.    

[Richlist]

2 hours ago, Grampa said:

I think you have covered all the documentation other than an inventory which isn't compulsory. Generally speaking any property that is rented out for residential purpose to an individual will default to an Assured Shorthold tenancy however you could choose to use an Assured tenancy.    

I know I can be a bit of a pain in the backside but it's in my nature.....I can't move on until I've mentioned everything else legal or otherwise. So, additionally you might like to consider:

Deposit protection, prescribed information, standing order details, legionella advice sheet, booklet on how to control condensation, list or restrictions if leasehold, smoke alarm working form, template for reporting repairs, any AST extra clauses, help & information sheet from landlord.

[Carryon Regardless]

Nowt wrong with pointers RL, thanks.

I believe there is a mindset of disclaimers and over protection. Legislation forces us to do much, far too much in my view.  I try to minimise, reduce admin, and where possible my responsibility.

Give 'em a couple of pieces of paper they 'might' read. Often it gets filed and as I will not see any again I can only guess where.

If I side step the deposit there is no need to administrate it, provide prescribed info they will not read until there is suggestion I was wrong and they can claim. Then Google is their friend anyway.

Some years back I created Tenancy Packs. It includes the AST, Grampa's Deed of Guarantee, EPC, Gas Cert, Reporting of Faults sheet,Notice of Tenancy Termination. We both sign the front sheet to say they got that lot, and agree meter readings, now they have utility supplier details and Council Tax contact, number  of keys. It details smoke and CO2 detectors and agrees tested. Email address for the How to Rent idiots guide. Rental Statements can be added as desired.

I've yet the address inclusion, or evidence, of the EICR. This I need to repeat 9 months after the previous inspection.

Following sign up, with an independent non related witness present, (self, tenant and G'tor all take copies away), I shall provide the 1st statement to show payments received and expected next payment. That gets a pre filled S.O. for them to present to their bank, if they feel like it.

I can no longer expect any payment toward any of that, including credit and reference checks. If specifically included within the AST I may charge at a rate of about £6.50 per £1.000 of arrears(p.a. or pcm I can't be arsed remembering) for late payments exceeding 14 days. They lose their keys I may only charge for the actual cost of the lock, if specifically within the you know. I don't see we are able to factor in locksmith costs.

I appreciate there are varying styles of renting, I used to enjoy fitting nice things to the properties myself. In some ways it was attempting to design a better way of living to tenants. Now, white goods no, hoovers and mowers not a chance.

If I can legally shift some effort to the tenant it makes sense.

 

 

[Melboy]

I supply everything mentioned above except for washing machines. A long story but years ago I had so much trouble with tenants and washing machines I vowed I would not supply them anymore. Summed up in one word, abuse.

It's worked out fine for me ever since and that has been for about 15 years or so now.

If I did ever supply a washing machine it would have to reflect in a slightly higher monthly rental charge.

[bil8999]

The only thing i supply is hob and oven, they are all carpeted, if the tenant requires higher spec, then they contribute.

I must admit i like the idea of no bond, but they pay for floor coverings' whether it would work, I am not sure.

 

[Richlist]

What is there to like about it ?

Disadvantages.

* No deposit means you have nothing from which to deduct the cost of missing, damaged, broken, dirty items.

* The tenant has less incentive to look after your property.

* Good quality tenants won't be looking for cheap property without floorcoverings.

* There may be problems with RGI cover........you'd need to check.

* You can almost guarantee that a departing tenant will leave you to lift and dispose  of it.

* I see nothing but problems.

* I have never known any landlord to offer a property without floor covering.

Advantages

* No, can't think of a single advantage. Are there any ????

 

 

 

[Carryon Regardless]

13 hours ago, Richlist said:

What is there to like about it ?

Disadvantages.

* No deposit means you have nothing from which to deduct the cost of missing, damaged, broken, dirty items.

If I take a deposit but spend that on carpets I have nothing anyway. A deposit is held, even if not challenged I then have to jump though hoops to get it, this avoids that

* The tenant has less incentive to look after your property.

Might look after the carpets.

* Good quality tenants won't be looking for cheap property without floorcoverings.

* There may be problems with RGI cover........you'd need to check.

I don't take that anyway.

* You can almost guarantee that a departing tenant will leave you to lift and dispose  of it.

How does that differ from they being carpets I've paid for?

* I see nothing but problems.

* I have never known any landlord to offer a property without floor covering.

Advantages

* No, can't think of a single advantage. Are there any ????

 

 

 

Anyway the quote for floor coverings so far is well in excess of the deposit. I'll get another quote but it may be I'm out of touch with costs. That isn't unusual, especially in these days of hi inflation.

[Grampa]

20 hours ago, Richlist said:

I know I can be a bit of a pain in the backside but it's in my nature.....I can't move on until I've mentioned everything else legal or otherwise. So, additionally you might like to consider:

Deposit protection, prescribed information, standing order details, legionella advice sheet, booklet on how to control condensation, list or restrictions if leasehold, smoke alarm working form, template for reporting repairs, any AST extra clauses, help & information sheet from landlord.

Quite right Richlist. You start Monday😀

[Richlist]

* I was under the impression that landlords spending money on replacment flooring can offset the cost against income. 

* If the new flooring is as a result of a recent property purchase or a refurb then the cost can usually be offset against capital gain when it's sold.I

Either way the cost is reduced for the landlord.

[Grampa]

18 hours ago, Melboy said:

I supply everything mentioned above except for washing machines. A long story but years ago I had so much trouble with tenants and washing machines I vowed I would not supply them anymore. Summed up in one word, abuse.

It's worked out fine for me ever since and that has been for about 15 years or so now.

If I did ever supply a washing machine it would have to reflect in a slightly higher monthly rental charge.

In one of my flats the only place that that a washing machine could be fitted was the bathroom in a boxed in area but the door had to be taken off. As I obviously didnt want tenant taking doors on and off i fitted the cheapest Currys one I could buy. But I also took out Currys lifetime maintenance plan which costs £3 per month. Which covers parts and labour and if the parts are unavailable any more they replace the machine.  The tenants been in for 7 years so far and I have had 2 call outs so far and paid £252 to date towards the maintenance cover. I am guessing the machine is coming to the end of its life so am hoping to get a new one fitted soon for free.

[Richlist]

That insurance sounds great value at £3 a month......and obviously costs less when offset on your tax return.

When I started with my first 3 properties I put a new washing machine in each and paid for extended warranty to 5 years. Amazingly, in spite of numerous tenancies, no doubt overloading and abuse, all 3 machines lasted 10 years, one even lasted 12 years with no breakdowns. I think the secret is to only supply a basic model with limited programmes and minimal extras.....less complexity, less to go wrong.  But I don't normally provide washing machines now. Sometimes a vacating tenant will leave their machine for me because it's to much hassle to move or they don't need it. I just offer it free to the new tenant, it doesn't go on the inventory. I make it clear it's a gift which I won't be repairing or replacing when it goes wrong. They all happily accept the gift.

[Grampa]

11 minutes ago, Richlist said:

That insurance sounds great value at £3 a month......and obviously costs less when offset on your tax return.

 

The product is called "Whatever Happens" and also covers (without cost) for visits when there is no fault and its a "user error" issue. The monthly cost is if I remember calculated on the cost of the appliance.

 https://www.currys.co.uk/gbuk/protect-projectors-316-commercial.html

[Richlist]

If I were to put a washing m/c in one of my rentals I'd certainly go for a very basic model as described above etc.

However, in my own home we have a Bosch washing machine that is just over 20 years old.......it's never broken down, never needed a repair and I'm reluctant to replace something that still goes well & looks good.  But of course its never knowingly been overloaded or abused as a machine might be in a rental property.  German equipment is usually top quality but they also tend to carry a higher price tag.