Lettings FAQs

From tenants

  • How can you verify the legitimacy of a letting agent?

In the UK, a credible letting agent should be registered with ARLA. This registration guarantees that the tenant’s rental payments are safeguarded and that the agent is knowledgeable about relevant legal issues. Moreover, it requires agents to maintain their skills and experience through ongoing training. Allie Home are proud members of this association.

 

  • What does ARLA stand for?

ARLA stands for The Association of Residential Lettings Agents. Allie Home are proud members of this association.

 

  • What is the best way to locate a rental property?

Online portals such as Rightmove and Zoopla are great places to start. Furthermore, you can discover properties listed on agents’ websites and their social media platforms.

 

  • What is the duration of a property rental?

Rental agreements are typically 12 months, including a 6-month break clause; but the exact length depends on your individual situation and the terms agreed upon with the landlord.

 

  • What is a Break Clause?

A break clause is a provision that permits either party to end the lease before the agreed termination date, provided appropriate notice is given. 

 

  • Is it possible for me to rent a property as a student?

Absolutely! Students are typically required to pay 6 months or 12 months rent in advance, or they may choose to have a UK-based guarantor. 

 

  • What is a guarantor?

A rent guarantor is someone who can guarantee rent payments and other rental obligations. They are responsible for making rental payments if the tenant falls into arrears, and they will compensate the landlord if the tenant defaults on the tenancy agreement in some other way. 

 

  • Who can be a guarantor?

Usually, they need to be at least eighteen years old, and a UK resident. They need to pass a credit check, have enough income, and sometimes guarantors are required to be homeowners themselves.

 

  • How much do guarantors need to earn?

The amount a guarantor needs to be earning will depend on how much the rent is. Usually letting agents or landlords will only accept guarantors that earn three times the annual rent.

Guarantors also need to pass a credit check and provide referencing from their employer or accountant to verify income.

 

  • How do I secure a property once I’ve found one to rent?

After your offer is accepted, you’ll be required to pay a Holding Deposit equivalent to one week’s rent. This will be credited towards your Security Deposit.

 

  • Are there any additional costs and when should these be paid?

If your lease is an Assured Shorthold Tenancy (AST), the only additional charges you’ll incur are a security deposit equivalent to 5 or 6 weeks of rent and your first rent payment. These should be paid before the start of your tenancy, although you may be asked to pay at the time of signing the lease agreement.

 

  • What does referencing involve and what documentation is required?

Referencing requires you to fill out a form with your personal information and supply documents that validate your personal, residential, employment, and financial history.

 

  • Where will my security deposit be held?

In accordance with the Housing Act 2004, all landlords and letting agents must register a tenant’s deposit in an authorized deposit scheme. This ensures that your deposit is safeguarded by a verified third party and will not be returned until both you and the landlord agree. Allie Home uses the Tenancy Deposit Scheme (TDS).

 

  • Who should I reach out to if there’s an issue with my apartment?

If your rental property is overseen by a letting agent, you’ll be given the contact information of your Property Manager, including an emergency number. They can help with any problems during your tenancy. If the landlord manages the property directly, you’ll receive their contact details for any property-related issues.

 

  • What are inventory check-in and check-out reports?

At the beginning of your tenancy, an inventory clerk compiles a report listing all items, fixtures, and fittings in the property, along with their conditions. When the tenancy ends, a check-out report is generated to identify any changes.

 

  • What are my responsibilities at the end of my tenancy?

You’re expected to organise a professional end-of-tenancy clean, and return all items to their original places. It’s advisable to refer back to the inventory check-in report received at the beginning of your tenancy for guidance.

 

  • When can I expect to get my deposit back?

Your agent or landlord must inform you within 10 days if they intend to deduct any charges from your deposit, although the actual return of your deposit may take longer if there is dispute. 

 

From Landlords

  • When is the deadline to file my taxes?

If you own rental property in the UK, you must declare and pay tax on all rental profits. Your personal tax return is due by January 31 of the following year, after the UK tax year ends on April 5. For example, income from April 6, 2022, to April 5, 2023, must be reported by January 31, 2024.

 

  • How can I file my taxes?

You should submit your taxes through a Chartered Accountant. Allie Home can provide the statements for your property directly to your accountant.

 

  • How much tax do I owe?

If you’re a non-UK tax resident living in the UK less than 183 days annually, taxes are based only on your UK property income. If you’re a UK tax resident living in the UK more than 183 days annually, taxes are based on worldwide income and gains.

 

  • How can I reduce my tax bill?

Landlords can claim the expenses of running and maintaining their property, which reduces their tax bill. Tax deductions can be claimed for agency fees, service charges, ground rent, home maintenance fees, and property-related expenses.

Consult your accountant for more details. 

 

  • Is loan interest tax deductible?

Since April 2020, you are no longer able to deduct mortgage expenses from your rental income to reduce your tax bill. Instead, you now receive a tax-credit, based on 20% of your mortgage interest payments.

Consult your accountant for more details.