Sell and rent back - the "small print"
(except its big)
Managing Agents
Some of our associates use what is called a Managing or Letting Agent to manage
their properties. Their responsibilities vary from just rent collection to full
management.
Your new landlord will advise you of their managing agent if they use one. Usually
when you have an emergency, problem or question you will call the managing agent
first and they will contact the landlord.
If your landlord chooses to manage the property themselves then they should provide
you with their contact details. It's always useful to ask them for details of plumbers
and other trades people too. If you have an emergency it can be a nightmare trying
to get a good tradesperson. Your landlord will have experience of many and usually
knows the good ones from the bad.
The Tenancy Agreement
By law your new landlord is required to issue you with what is called an Assured
Shorthold Tenancy agreement or AST.
The important thing to note is that a landlord cannot offer you any sort of guaranteed
rental period past the first six months.
This may be worrying for you but please note that the landlord cannot make any such
guarantees, by law. It is not that they do not want to but that they can't. This
also gives you flexibility too - you wouldn't want anyone telling you that you can't
leave would you?
Remember too, that as a landlord what they want most is a tenant who pays their
rent and looks after the property; if you do this then they will not want you to
leave let alone ask you to.
The AST is the only tenancy agreement they can issue and while some of the terms
vary depending upon who issues the agreement the fundamental legal aspects are always
the same.
This requires that within the first 6 months neither party can serve notice. If
you leave within six months the landlord is entitled to sue you for loss of rent.
Similarly, the landlord cannot ask you to leave during the first six months unless
you have not paid your rent or for a variety of other reasons such as destruction
of property or causing a nuisance. But whatever their reason they must do this legally
through the courts in order to make you leave.
Of course if for whatever reason you both mutually agree to terminate the AST after
say 3 months then this is perfectly acceptable.
If the landlord requires you to leave at the end of six months, he must have given
you two months notice at month four. You too are required to give two months notice
at this stage if you wish to leave.
After the first six months are up you can be asked to leave at any time with two
months notice. You however are usually only required to give one months notice but
you must check the terms of the tenancy agreement as occasionally two months notice
is required.
Some landlords, or their managing agents, will issue a new tenancy agreement every
six months. Some prefer to just roll them over into what is called a periodic tenancy
agreement. Depending upon which agreement you have will depend upon when you and
the landlord are required to serve notice, such as on the day of your rent payment.
A simple call to the landlord or managing agent should clarify this if you are thinking
about leaving.
All persons over the age of 18 who occupy the property must be named on the AST.
If you have anyone coming to live with you any longer than a few weeks then it is
very important that you inform the landlord or their managing agent.
The AST will be signed by all tenants and the landlord or their managing agents
on their behalf. Generally you will require an independent witness who will also
sign the AST when you do. You should receive your own fully signed copy of the AST
afterwards.
The Inventory
Your landlord or their managing agent will want to complete an inventory upon completion
of the purchase. This is a complete list of the fixtures and fittings that now belong
to the landlord plus comments regarding the condition of the items and the property.
It is important that you see a copy of the Inventory and only sign it when you are
happy with it.
Unless agreed otherwise the landlord will now usually own the items that are 'fixed'
such as fires, fireplaces, radiators or heaters, fitted wardrobes, carpets, kitchen
and bathroom units, suites and fittings, etc. Your items will usually consist of
anything moveable that you could take with you if you leave such as sofas, tables
and chairs, non-fitted wardrobes, curtains, cabinets, beds, etc.
We appreciate that some properties may not be in tip-top condition; this is fine.
In the event you do decide to leave the landlord will only expect the property to
be returned to them in the same condition as it was when he completed the purchase.
If it is worse they may ask you to contribute towards the cost of repairs or maintenance.
Conversely, if you have made improvements to the property the landlord may be willing
to discuss payment for these. The best thing is to talk to them in the event you
decide to leave.
Utilities
You are usually responsible for any utility supplies to the property, unless otherwise
informed by your landlord. Usually you need make no changes as your name will be
on the records for your utilities anyway.
It is also advisable to take meter readings when the property completes; your landlord
or their Managing Agent will usually do this and provide you with a copy that you
are both in agreement with.
If you are on a card meter then this can continue as normal too.
Council Tax
It is the occupier of the property, not the owner, who is responsible for the payment
of Council Tax. Normally this simply means you will continue as you are.
In the event you are seeking housing or other benefit payments you may need to inform
your local council of this as it could affect your council tax.
Housing and Other Benefits
In the event you will be seeking housing benefit it is important you discuss this
with your local Area Manager BEFORE you complete on the sale of your property.
The payment of housing benefits varies widely from council to council. Some councils
will not allow you to claim Housing Benefit if you have sold your own home and are
choosing to rent it back.
If you received a cash lump sum on the sale this could also affect the amount of
benefits you receive.
Your Area Manager can help you discuss this with the appropriate persons and ensure
that you do not make the wrong decision by selling.
Click here
for more information on housing benefit
Insurance
Upon exchange or completion your landlord will arrange and take over payments of
buildings insurance. They require a different type of insurance to that of a homeowner
so they will arrange their own cover.
You will still be required to protect your belongings with contents insurance. It
is wise to call your current insurer and ask if your contents insurance covers you
as a tenant rather than an owner as some do not.
Keys
It is important that your landlord and/or their managing agent have a full set of
keys for the property.
Please note that they will never enter your property without your permission unless
in an emergency or in the event you are vacating.
It would be useful, if, prior to completion, you could obtain a complete set of
all of your keys, copies are fine but please do check they work first!
Retain the receipt for the copies and your new landlord will reimburse your costs.
Contact your landlord when you have them available and they will come and collect
them - please do not post them.
Responsibilities
Your biggest responsibility is to keep up your rental payments.
If you think there may be a delay you must contact the landlord or their managing
agent as soon as possible when they may be able to help.
A refusal to acknowledge the problem, deal with it or pay back owed rent will usually
result in them starting repossession proceedings with the court. Your landlord may
have helped you out of this situation once already; they will not want to do it
again.
Your landlord is required by law to provide you with decent accommodation, heating,
light and cooking facilities. Clearly people have differing views on what all of
these are. But essentially as long as you are comfortable living where you are,
and you probably are as it was your former home, then that should suffice.
Landlords are required by law to ensure that the property's gas appliances are maintained
properly and as such are required to obtain a gas certificate every year on any
rental properties that have gas appliances - these include boilers, fires and cookers.
Your landlord or their managing agent should contact you before completing on the
purchase to arrange a gas certificate and inspection. This should be in place before
you become a tenant and you should receive your own copy of the certificate.
Your landlord will usually take care of any major work on the property such as roof
repairs, electrics, plumbing etc. and expect you to look after the property with
general day to day care and maintenance such as cleaning of the property inside
and out and reporting of any damage or faults with the property so that they do
not get worse.
If you wish to improve the property such as a new kitchen, bathroom, decorating,
garden works etc then the landlord is usually more than happy for you to do this.
It's always best to check with them first though; if nothing else they usually have
good trade contacts and may be able to get these done for you much quicker and cheaper!
The long and short is most landlords will be happy for you to continue treating
the property in exactly the same way as when you owned it. If you take care of the
maintenance and repairs they are usually more than happy to be flexible with improvements,
decorating, etc.
To find out more about we work with you, the benefits and the A Quick Sale process,
see How it works.