Referencing AND Insurance
All of our potential tenants are comprehensively referenced, which includes checking the electoral role, confirmation of employment and earnings, affordability check, credit history check and a previous landlord / agent reference (where applicable). Where we source a tenant for you and our Fully Managed service is selected we will also include for FREE 12 months tenant evict legal cover* to meet the costs of regaining possession of the rental property, should this be required. This additional cover is renewable on an annual basis, for a small additional fee.
* Tenant evict is only available for employed tenants.
Tenant Liability Insurance
Within our additional clauses section of our Tenancy Agreement we recommend tenants to consider tenant content insurance. Although this cannot be enforced, we can legally enforce that tenants who do not take out contents insurance do take out tenant liability insurance.
This provides them with insurance cover to replace any fixtures or fittings within the property that they may have damaged, the claim limit is up to £2,000. The cost of tenant liability insurance is approximately £6.00 per month and reduces the need for you, the landlord to potentially loose revenue by incurring additional repair costs or by claiming on your own landlords insurance.
As a landlord you are responsible for having insurance cover in place that firstly protects your investment but also covers the cost of rehoming the tenants should your rental property become uninhabitable.
Vanquish Letting Services Ltd. has a Landlord Portfolio service for our managed properties whereby we can provide you with cover at a competitive price, as a guide this insurance costs £1.54 per £1,000 of rebuild costs, plus IPT which, from 01/06/2017 is 12%, plus a small administration fee. Our Landlord Portfolio Insurance service is provided by Liverpool Victoria.
You may be able to find your estimated rebuild cost on Mortgage documents, if not you can use this tool to calculate an estimate. You will need your properties floor print which you can take from your EPC www.abi.bcis.
If your property has an EPC you can search for it here National EPC Register.
Taxation changes on rental properties
The wear and tear allowance will be replaced by a new system from April 2016. The previous wear and tear allowance allows landlords to deduct (broadly) 10% of their rental income in calculating taxable profit to allow for wear and tear. This allowance will be replaced by a system allowing landlords of residential property to deduct only the actual costs incurred on replacing furnishings in the tax year. Capital allowances for furnished holiday lets will not be affected. A technical consultation will be published later in the year to consider this further.
All landlords of residential property in or outside the UK, are permitted to claim relief for finance costs (e.g. mortgage interest) incurred on their let property, giving tax relief at 40% and 45% for landlords paying tax at the higher and additional tax rates. This tax relief will be restricted to the basic rate of income tax only (20%). Implementation will be phased from April 2017 as follows.
Click on the button below to learn more about these important changes.