OUR NEW PREMIUM SERVICE

Premium Fully Managed Service

Our new premium service provides landlords with the financial assurance that their rental income will be received. We have made this new Premium Service as affordable as we possibly can.

Landlords will benefit from:

No let - No fee | No Set-up fees | 6 Month Rent Guarantee Warranty | Full Management

This service will take care of the complete lettings process and also includes a 6 Month Rent Guarantee Warranty which will cover rents up to £2,500 per month and legal fees up to £50k.

Available for new tenancies, a minimum 6 month landlord contract applies, monthly management commission fee of 8% applies (VAT free).

Our new Premium Fully Managed Service with Rent Guarantee is available in Derby, Nottingham, Burton and Ashbourne.

Contact Vanquish Letting Services Limited today to find out more.

Home Office Right to Rent

A user guide to Right to Rent document checks

Landlords who let private property in England, or take in lodgers could be liable for a civil penalty if they enter into a tenancy agreement involving an illegal migrant. If a landlord makes the checks and retains copies as required they will have a statutory excuse against such a penalty.

Landlords and agents should apply the right to rent checks in a fair, justifiable and consistent manner, regardless as to whether they believe the prospective tenant to be British, settled or a person with limited permission to be in the UK. More information on avoiding discrimination is available.

Throughout the document you will find a visual guide to each document which can be accepted to satisfy a Right to Rent check, either in isolation or in combination. There is also an FAQ section to address some common queries. If you are carrying out right to rent checks, there is a checklist for you to print and hold for your records. Landlords can arrange for an agent to carry out checks on their behalf if a written agreement exists between them.

To open the full document in PDF format click on this link.

Taxation changes on rental properties

The Measure

Allowable expenses from rental income will be restricted for landlords from April 2016.

The wear and tear allowance will be replaced by a new system from April 2016. The past 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:

  • 2017/18 – the deduction from property income will be restricted to 75% of finance costs with the remaining 25% available at the basic rate.
  • 2018/19 – 50% of finance costs available for full tax relief and the remaining 50% available at the basic rate.
  • 2019/20 – 25% of finance costs available for full tax relief and the remaining 75% available at the basic rate.
  • 2020/21 – all financing costs incurred by a landlord will be given as basic rate tax reduction.

Who will be affected?

All landlords of furnished residential properties will be affected by the replacement of wear and tear allowance by a new system. 

Landlords of residential properties paying tax at the higher and additional rates will be affected by the restriction of finance costs, excluding those with qualifying furnished holiday lets.

When?

The new rules replacing wear and tear allowance will have effect from April 2016.

The restriction of allowable finance costs will be phased in from April 2017 over 4 years.

 

Tenant administration fees

All letting or estate agents that let properties by law should clearly list a breakdown of any applicable fees that will become payable during the course of renting a property. This may include fees for referencing, setting up the tenancy, preparing an inventory, pet licences, check-ins, check-outs and even renewing a tenancy. These should be clearly listed on their website, but also on sites used to market the properties, such as Zoopla, Primelocation, Rightmove, On The Market, Gumtree, Spare Room etc.

Vanquish charge for referencing, administration and to prepare an inventory of contents and schedule of condition. If the tenancy does not change after the initial term, the tenancy will roll over into a Statutory Periodic Tenancy, at which point the tenant is required to give at least one month's notice and the landlord two months notice.

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