Bank Accounts and Standing Orders
We will ensure that a standing order is be set up so that the Tenant can send Rent payments direct to us. We suggest you set up a facility with your bank to ensure payment of all regular outgoings to take account of alterations to the Rent payment date, void periods or failure by the Tenant to pay the Rent. We cannot be held responsible if the Tenant fails to pay the contractual rent. We can advise you to instruct specialist solicitors to take further action. You will be responsible for the legal charges and expenses incurred.
Interest on Clients’ Monies and Commission
Any interest accrued on clients’ money which we hold will be retained by ourselves to cover bank and administration charges etc. Any commission earned by us while acting on your behalf will be retained to cover costs.
Rent Arrears or Breach of Covenant
It is your responsibility to take all necessary steps to ensure that the actions are taken to protect your interest, including instructing solicitors and commencing legal proceedings to preserve your rights and recover arrears of Rent and to defend all action or other legal proceedings and arbitrations that may be brought against you in connection with the Premises. All costs and disbursement incurred including legal costs and disbursements will be payable by you.
Reimbursement of the Agent
You will keep us reimbursed for any claim damage or liability whether criminal or civil suffered from and during the time that we are or were acting on your behalf unless it is due to our negligence or breach of contract. For the avoidance of doubt we reserve the right to have work carried out on your behalf and to charge you for that work to ensure that you fulfil your contractual and statutory obligations as a Landlord.
Do I have to declare my rental income to the taxman?
Yes. Rental income must be declared to HM Revenue and Customs on a self-assessment tax return. It is your responsibility to inform the Revenue that you are now in receipt of rents.
How so I inform the Revenue that I am now a Landlord?
The best way is to advise your tax district in writing. They will then arrange for a tax return to be sent to you. If you already file self-assessment tax returns, you will need to compare the land and property supplementary pages on your annual tax return.
What expenses can I claim to reduce the tax I pay on rents?
The general rule is that expenses must be wholly and exclusively for the purpose of the rental business. The main expenses a typical Landlord would incur are:
- Repairs and maintenance
- Service Charges and ground rent
- Advertising for Tenants
- Buildings and contents insurance
- Agent’s fees and commission
- Bills paid by the Landlord such as council tax, heat and light and water rates
- Accountancy fees
- Travel to the property
- Office cost including telephone postage and stationary
- Finance costs (but not life insurance)
- 10% wear and tear allowance if the property is furnished (See new guide lines)
Freehold sales and transfers
You can also use this table to work out the SDLT for the purchase price of a lease (the ‘lease premium’).
|Property or lease premium or transfer value||SDLT rate|
|Up to £125,000||Zero|
|The next £125,000 (the portion from £125,001 to £250,000)||2%|
|The next £675,000 (the portion from £250,001 to £925,000)||5%|
|The next £575,000 (the portion from £925,001 to £1.5 million)||10%|
|The remaining amount (the portion above £1.5 million)||12%|
The government has suggested as of March 16th 2016 there will be an increase of 3% per threshold for purchases of a second property. Property owners who have 15 or more properties will be exempt from this additional TAX.
Acts of Third Parties
We will not be responsible for any loss or damage that you suffer through the act, default or negligence of any third party which may arise.
In order to comply with the Proceeds of Crime Act 2002 and the Money Laundering Regulation 2003 we require you to provide us with one proof of identity(passport, national identity card or driving licence) and one proof of residence (council tax bill, utility bill or bank statement).
Either party has the right to terminate this Agreement in writing with 3 months' notice
"Douglas and Simmons are a professional, friendly team who work proactively to achieve a successful outcome on behalf of seller and buyer"