There are benefits to long term letting and short term letting. Factotum’s flexible approach allows you to rent when it suits you.
We are experienced letting agents for short term, long term, holiday and festival lets. Whether you want to let your property for a week or a year, we have a growing number of prospective tenants waiting to move in.
What is a Long Term Let?
A long term let is a rental agreement that lasts for at least six months. If the tenancy began before 1st December 2017, it is regularly termed a Short Assured Tenancy (SAT) and only applies to individuals. A SAT must be for at least six months up to a maximum of 20 years. All new tenancies, beginning on or after 1st December 2017 are a Private Rented Tenancy (PRT). They have no initial period (the tenant can give 28 days notice at any time) and there is no end date. The tenant has occupancy rights unless they break the terms of the tenancy or the landlord wishes to sell or live in the property themselves.
What are the benefits of Long Term letting?
As a landlord, it gives you:
- A regular income, reducing the chance of having periods when your property does not have a tenant.
- Greater security knowing that a set income is coming in every month.
- Peace of mind knowing that your tenants consider your property as their home.
- No utility bills or council tax payments. These are all in the tenant’s name.
What are the disadvantages of Long Term letting?
Letting long term is not always the best solution. There is much less flexibility in the lease and most of the rights are with the tenants rather than the landlord.
- There are many more mandatory certificates and regulations to comply to in order to let a property on a long term basis, including Energy Performance Certificates, Fire / CO Detection System Testing, Insurance, Portable Appliance Tests, HMO license, Gas Safety etc.
- There are stricter laws regarding the termination of a tenancy. Short term letting is much more flexible.
What is included in the monthly rental price?
The price quoted for a long term let is for the monthly rental only. It does not include council tax or utilities, which are usually transferred into the tenant’s name due to the longer length of the lease.
What is Factotum’s commission?
Every property is different, so Factotum tailor our service depending on what is required by each individual landlord. We can be as involved as much or as little as you need us to be.
We provide a full management service for long term lets. Once we have advertised and matched a tenant to a property, this includes:
- Regular regulations management (HMO, gas safety, insurance etc.)
- Collecting rental income
- Liaising with the government-run Tenant Deposit Scheme (TDS)
- Taking references and / or setting up guarantors where required
- Taking meter readings and putting utilities and services into the tenant’s name
- Informing Edinburgh Council of new occupiers
- Three full property inspections a year
- Arrangement of maintenance
- Complying with all repairing standards
- Compilation of a full photo inventory at the start of each tenancy and reconciliation at the end of each tenancy
- Arrangement of buildings and contents insurance. Factotum (Scotland) Ltd are appointed representatives of Spence Insurance Ltd.
Our commission rate is 12.5% + VAT of the monthly rental income. For properties with a rental income over £1000 pcm this is normally reduced to 10% + VAT. Commission is also reduced for landlords with multiple properties.
What is the deposit for a long term let?
The deposit taken from the tenant is normally equal to one month’s rent. In some circumstances, for instance if pets are allowed, the deposit can be increased to two month’s rent (which is the maximum deposit).
What is Factotum’s administration charge?
The registration fee for your first long term let is £100 + VAT. Subsequent leases are reduced to £75 + VAT. Factotum offers a free advertising service in the first instance and does not apply any charges until the let is secured. As a result, any admin charge is deducted from your first month’s rent.