Frequently Asked Questions by Landlords

What can Lampons offer me?

Lampons is one of the most well-established and successful independent estate agencies in the south east. Our business has grown through our ability to provide clients with a unique range of high quality services tailored to their needs.

We're the leading rental agent locally and can provide landlords with a level of support that we believe is unbeatable.

How long are most tenancy agreements?

Lampons usually offers 12 month tenancy agreements with a break clause at six months. This means that if the landlord requires the property back or the tenant wishes to vacate, either can do so at six months by giving predetermined notice (landlords must give two months, tenants one month).

What type of people rent properties through Lampons?

Our professional approach to lettings means we tend to attract good tenants seeking quality homes across the price spectrum. Requirements vary, which is why there is a demand for all kinds of properties, ranging from studio apartments right up to large family homes.

The biggest growth market we've seen in recent years is in the 'young professional' sector. In the late 1980s, the average first time buyer was in their early 20s — these days, he or she is likely to be in their mid to late 30s. As a result, there are significantly more financially-secure young adults looking to rent, either on their own, as a sharer or part of a couple or small family unit.

With fewer local authority properties available, there has been an increase in the number of people who rely on benefit to fund their housing needs in the private rented sector. The volume of tenants who rent on this basis varies from one area to another.

Are you a member of any professional bodies?

Lampons is a member of ARLA — the Association of Residential Letting Agents. This exclusive body is only open to agents who have demonstrated they have a thorough knowledge of their profession and can conduct their business according to best practice.

Members hold professional indemnity insurance cover, operate audited client accounts and are bonded to safeguard clients' monies.

Lampons also has directors and staff holding membership of the RICS (Royal Institution of Chartered Surveyors) and the NAEA (National Association of Estate Agents). The company is a member of the TDS (Tenancy Deposit Scheme).

Will my property be seen by the maximum number of prospective tenants?

Across the area covered by Lampons, no other rental agent can provide properties with better exposure. As well as operating a network of local branches, the firm has one of the most extensive and advanced property websites in the region – www.lampons.com. This easy-to-navigate site is updated daily and is essential viewing for serious homehunters. All properties marketed by Lampons also appear on numerous other websites including leading UK property portals such as Rightmove and Zoopla.

Lampons advertises more throughout its area than any other agent. We're in leading local newspapers and magazines, on radio and appear selectively in the national media.

How much do you charge?

The fee structure set by Lampons has been fixed at a competitive level, especially considering the high standards of service we are able to provide. For full details, ask your local office of Lampons for our Schedule of Fees sheet.

How and when is the rent paid?

In accordance with the tenancy agreement, the tenant will be contracted to pay the rent ideally by standing order to Lampons on a fixed date each month. As long as there are no delays in receiving the rent, the clearing and administration process begins. Payments are made direct from Lampons into the landlord's nominated bank or building society account via BACS. Assuming the monthly rent is received on the due date, it will be allocated to the next payment run (which take place twice weekly, normally on a Friday or Monday). It should be remembered that it can take 2/3 working days for the bank to allocate the funds to the landlord’s account.

Are your tenants fully referenced?

Yes. We insist that all prospective tenants complete a very detailed application. Once this is done, it is passed to a credit referencing specialist who provides us with a comprehensive credit score. This assessment takes into account current information on the prospective tenant — information that is not legally available to private landlords — and includes detailed financial history checks, along with current landlord and employment references.

Do you ever recommend Local Housing Allowance (Housing Benefit) tenants?

A proportion of properties let through Lampons in some areas are rented to local housing allowance tenants. Most such tenancies run very successfully. A guarantor is required and the local housing allowance is paid direct to the tenant who has responsibility to pay the rent. If a tenant defaults, Lampons informs the local housing allowance office and payments to the tenant are suspended. The rent is then paid direct to Lampons. The guarantor remains in place.

Should I let furnished or unfurnished?

Letting your property furnished will not necessarily bring you a higher income and will almost certainly involve increased levels of maintenance. You'll also need to comply with soft furnishing fire regulations. Be aware that if you provide white goods, you are obligated to maintain or replace them, unless any damage is directly caused by the tenant.

Our general recommendation is to let unfurnished. Should you opt to include furnishings, do remember to remove any valuable or sentimental items. In addition, the tax position is slightly different for rental income from furnished property and we can advise you on this.

Do I need to install smoke alarms and arrange a gas safety certificate?

Smoke alarms should be operational at the property when it is let. Where appropriate, landlords need to comply with gas safety regulations by ensuring any gas appliances and pipework are checked annually by an approved contractor. Lampons would be happy to arrange this on your behalf. A copy of the resulting Landlords Gas Safety Record must be provided to the tenant.

What current legislation could affect me as a landlord?

There is numerous legislation affecting the letting of property. Lampons can provide a brief outline on some of the most relevant acts and regulations.

Can I enter the property while it is let?

You can, but you must gain the prior agreement of the tenant.

What if the tenant refuses to pay the rent or damages the property?

Our referencing procedures help ensure that tenants who let through Lampons are reliable and trustworthy. We hold deposits and the tenancy agreement we use includes clauses that require tenants to pay the rent and not damage the property (although you must be prepared to accept fair wear and tear).

In the unlikely event of a tenant breaching these covenants, there is a clear remedy through the courts. We will be happy to recommend specialist legal advisors and offer you every guidance in connection with an eviction and, if appropriate, the claiming of damages against the tenant.

Lampons also provides landlords with access to rent protection insurance. We also recommend that landlords maintain an appropriate buildings and contents insurance policy. Lampons can arrange for specialist insurers to contact the landlord and provide a quote.

Who pays Utility Bills and Council Tax?

All utility bills and council tax are the responsibility of the tenant, although Lampons does recommend that the landlord takes meter readings at the end of each tenancy.

Is the tenant allowed to carry out improvements or undertake any work at my property?

No, unless a request has been submitted in writing and approval gained in writing from the landlord. However, Lampons would recommend that only professional contractors carry out any works. We can either provide details of local contractors, where required, or arrange a contractor if we manage the property. If the landlord decides to allow the tenant to undertake works, it should be remembered that Lampons would not be responsible for any such work carried out.

Can I regain possession of my property at the end of a tenancy?

Yes, because we ensure that the tenancy agreements are correctly drawn up and the proper notices have been served at the appropriate times. In the very rare cases where legal action is needed for repossession, the court will almost always make an order in the landlord's favour. For peace-of-mind though, Lampons can recommend specialist insurers who provide legal protection policies. We also have arrangements with a local firm of solicitors, who can offer a discount to Lampons’ landlords on their fixed price fees for possession proceedings.

How will the Tenancy Deposit Scheme affect me and what does it cost?

Should a deposit dispute occur, the Tenancy Deposit Scheme allows an unbiased conclusion and protects the landlord and tenant from having to incur the cost of expensive legal action to resolve the matter. A nominal annual charge will be made and full details on this are available from Lampons.

Will I save money if I let my property privately?

We don't think so. The letting industry is littered with heartbreaking stories of how innocent and well intentioned property owners have let privately, sometimes to friends or family, with absolutely disastrous consequences.

The most common problem experienced by private landlords is late or non payment of rent or damage to the property, its fixtures and fittings. Get into this situation and you run the risk of becoming involved in an expensive legal wrangle and court proceedings.

All this could be on top of spending a considerable amount of money advertising the property and taking time to show prospective tenants around. Once you've found someone who wants the place, you won't be able to reference them like Lampons can — or hold the deposit. You'll also need to organise and pay for some kind of tenancy agreement and face the hassle of collecting the rent.

Leave the letting and management of your property to Lampons and you could save yourself a vast amount of worry and expense. We have a huge database of existing tenants and hundreds more contact us every week. Your property will be promoted to them through our branches, advertising and website. We'll find you a suitable tenant and check their references. We can provide you with legal expenses protection and even arrange a scheme which will guarantee the rental payments.

Do I need to inform my mortgage lender if I decide to let my property?

Yes, your lender will need to give permission. Most will agree and allow you to rent your property out on this basis. In some instances, the interest rate may change.

If you want to let your home and buy another property, you should consider a let-to-buy mortgage. Lampons independent financial advisers can offer you guidance on this.

What is Buy-to-Let?

Buy-to-Let was originally a joint initiative introduced by ARLA and the mortgage lenders. The scheme was designed to help private individuals invest in rental property without being penalised by mortgage surcharges or paying commercial rates of interest.

Various lenders are prepared to offer between 75% and 85% of the purchase price, leaving the buyer responsible for the deposit. This can either be raised from savings or by releasing equity from existing property. Lampons can advise on this.

The mortgage company will need to know how much rent you expect to get from the property — in general, this has to be 125% of the monthly interest payment.

Lampons has an in-depth knowledge of the local market. Working with our colleagues in sales, we can help clients choose property that is likely to be in demand and should perform well, both in terms of rental income and long term capital growth. Our in-house independent financial advisers can assist with any mortgage requirements.

Do I need to pay tax on my rental income?

You will need to pay tax on any net profit made after deduction of legitimate costs such as mortgage interest, management fees and repairs, etc. If required, Lampons can put you in touch with accountants who can offer you practical assistance and guidance.

For overseas landlords, Lampons can assist in registration for tax purposes.