Letting Your Home - Our Services & Charges
Some people may fear letting their home, this is probably due to old laws which gave Tenants enormous rights. These laws have been changed and letting your property should no longer present difficulties. Feltham & Feltham Residential Lettings has extensive experience in this field. Our up-to-date knowledge of the ever changing law will help remove any pitfalls for the unwary.
We provide Full Management. We find a tenant and then continue to look after the property for you, collecting rent and supervising the tenants to ensure that they comply with their obligations, and general day to day overseeing of the property.
Letting
We will inspect your property and give you advice upon the amount of rent which could be obtained. We undertake to find a suitable tenant, through our listings and regular advertising, show applicants around your property, obtain references on the prospective applicant, draw up a tenancy agreement, prepare an inventory and schedule of condition, obtain the initial rent and costs and ensure that the tenant moves into occupation.
Our fee for this service is £250.00 + VAT
Full Management
We undertake the process of letting as above and once the tenant has taken occupation we will inspect the property periodically, arrange for normal maintenance for which the landlord is responsible, collect rents, render to you a detailed account of income and expenditure and be on hand to deal with any matters relating to your property as they arise.
Our fee for this service is 8% plus VAT, during the term of the lease(s).
The Tenancy Agreement
We have produced a form of letting agreement which can be adapted to include particular requirements. We prepare this agreement specifically for your property and arrange for you and the tenant to sign. In most lettings to ensure you can regain possession we utilise an Assured Shorthold Tenancy.
NB.
- The tenancy agreement must be in the name of the property owner or owners.
- Consent must be obtained before letting from the mortgagee if it is Mortgaged, and/or head lessee, if your property is leasehold.
Electrical Safety
Consumer Protection Act 1987
The landlord is responsible to ensure compliance with the safety regulations. To ensure that the electrical supply in the property is safe, a certificate is required from a qualified electrician and all electrical appliances must be tested annually by a registered electrician who must supply a certificate. We will arrange the initial and subsequent tests as part of our full management service.
Gas
The Gas Safety (Installation & Use) Regulations 1994
All gas appliances and any installation pipework installed in the premises must be checked for safety annually by the Gas Board or a CORGI registered contractor and certification provided. We will arrange the initial and subsequent tests as part of our full management service.
Furniture & Furnishings
The Furniture & Furnishings (Fire) (Safety) (Amendment) Regulations 1993
These regulations aim to improve safety by requiring all furniture and furnishings in rented property to pass the "cigarette test". Most new furniture is marked with a ticket to show that it has passed the test.
All furniture which does not comply with the requirement must be removed and/or replaced by furniture complying with the regulations. Furniture items required to comply are all upholstery, upholstered furniture, loose fitting panels and loose covers including beds, mattresses, pillows, settees, armchairs, scatter cushions and beanbags. Carpets and curtains are not covered by the regulations.
Any furniture manufactured before 1st January 1950 does not need to comply with regulations, as apparently the inflammable materials were not used prior to that date. This exempts period and antique furniture.
The regulations state the non-compliance with this can lead to imprisonment of 6 months or a 'level 5' fine, currently £5,000, or both.
Smoke Detectors
All homes built after June 1992 must have mains operated smoke detectors. For any property built prior to this it is advisable to install one on each floor attached to the ceiling, not the walls. Tenants are asked to ensure batteries are tested and replaced where necessary.
The Contents Of Your Home
We recommend that an inventory itemising the contents and describing the state of your home is taken. We will arrange for an inventory to be produced at the start of a letting and checked when a tenant vacates.
At our initial inspection of the property we will advise you on the suitability of contents and in some circumstances recommend that some item or items are removed, particularly where they are of special value or not easily replaceable.
Inventory
On the start of the tenancy a full inventory is required by our independent inventory clerk the charges for this are -
- 1 Bed - £75.00 unfurnished
- 2 Bed - £100.00 unfurnished
- 3 Bed - £106.00 unfurnished
- 4 Bed - £123.00 unfurnished
- 5 Bed - £141.00 unfurnished
Furnished costs can be obtained please contact us for details
Damage Protection
At the time of letting we obtain from the tenant a deposit which we hold during the period of tenancy as a security against damage to your property and contents. When the tenant has vacated and we have checked the inventory, we assess any dilapidations, deduct the costs from the deposit, ensure that the service accounts are up to the date on vacation and are paid by the tenant and then send them any balance due.
You must bear well in mind that the property and its contents are let subject to a fair wear and tear clause. The property will be occupied through the period of letting and subject to the stresses and strains of everyday living.
Tenants Costs
Deposit to Hold property for Seven Days we require £250.00 which is non refundable if the tenancy does not proceed to cover administration costs. This deposit is taken off of the balance outstanding if the tenancy proceeds.
Administration fees £170.00 - £250.00 plus VAT depending on the monthly rental and size of property this includes referencing for one tenant and all administration work to arrange the tenancy, setting up the agreement, meter reading, standing orders, contacting the utilities to inform of change of tenancy, checking in.
If cancellation of the tenancy occurs administration costs will be applied.
£10,000 minimal Contents insurance can be arranged through us for a charge of £76.15 per six month rental period or if insurance is taken up by tenants themselves we require proof of the policy.
Deposit is taken of normally one months rental of the property (if higher this is shown on the moving in cost sheet), this is held in our clients bonded account under the current TDS guidelines.
One months rental is always taken in advance as all rental is taken in advance.
Additional Costs
Additional referencing £50.00 each
Self-Employed referencing £50.00 each
International referencing £75.00 each
Fast track referencing additional £50.00 each
Check out charge £50.00 + VAT
Renewals of the agreement are normally offered upon agreement by the landlord at the four months period of the agreement and this is offered after an inspection of the property and can be offered by the landlord for normally six months or sometimes one year. This is offered with a break option (allow to vacate the property after giving one months written clear notice) or no break option for the period which means the only option to come out of the agreement is by written permission by the landlord. The fees for this are Renewal of agreement £65.00 + VAT
To be released from an agreement if the landlord allows this the charge is one month of the rental to cover costs and landlord costs. The tenants remain responsible for the property, all rental and utilities are due up until new tenant is signed to the property.
If a pet has been allowed at the property there are cleaning charges that will apply; these are in our tenancy agreement.
Services
We ask the tenant to make contact with the service authority to advise of their occupation or vacating. As a second string we also advise the authority of a change of occupant.
- TELEPHONE- The name of the subscriber can be changed by telephoning 150 and asking for Residential Sales. If there is no immediate subscriber to replace existing, BT will charge a reconnection fee when a new occupant is found or when you, the landlord, returns. If the tenant does not wish to have a telephone line, but you wish to continue with the number, a quarterly fee will be charged by BT, which can be billed to you direct or sent to us for deduction from the rent.
- ELECTRICITY -We advise landlords that tenants will be responsible for the payment of units used and standing charges from the date of occupation. Any outstanding bills may be sent on to us to be paid out of rent received. We have to rely on the Electricity Board to prepare a Closing Account to a specific date.
A cost may be incurred if a special reading or re-connection is necessary. - GAS - A similar process to that for electricity.
- WATER RATES - It is usual for the tenant to pay the Water Rates for the period of the tenancy. If the property is left empty & furnished, the landlord is liable to pay Water Rates. If the water is metered, the landlord is responsible for the quarterly charge whilst the property is empty.
- COMMUNITY CHARGE -The tenants are responsible for payment of their Council Tax. If the property is left unoccupied furnished, the landlord will be Responsible for the equivalent of two persons' Community Charge after 6 months.
Income Tax
Where a landlord is overseas during the time we manage a property, we are directly liable for the payment of Income Tax on the rent we collect. This direct liability places us in a difficult position. Due to this direct liability, we will deduct tax at the standard rate from the rents we collect, prior to accounting to you, whilst you are overseas. It is possible for you to obtain a Certificate from the I.R. which will enable us to pay all rent to you without tax deduction.
Where tax is deducted and held by us, it can be released only when we receive confirmation from the Inland Revenue that the due tax for that and previous years have been paid. If you wish, we will pay from the monies held, any authorised Tax Demand and forward the balance for that tax year to you.
We will not undertake completion of your Tax Return. We are obliged to make returns to the I.R. of all rents we collect.
The Rents Acts
An "ASSURED SHORTHOLD TENANCY" created in the Housing Act 1988 allows a landlord to recover possession. These are fixed term Tenancy Agreements for a period of not less than 6 months, with the landlord able to serve 2 months Notice to Quit at any point after the fourth month.
Mortgages
Please note that the consent of your mortgagee must be obtained before you enter into a letting of a mortgaged property. You may be in breach of your mortgage agreement if you do not.
Mortgagees frequently require us to supply copies of the Tenancy Agreement, Inventory and, in some cases, to pay a registration fee before a letting can commence.
Copying
Where we have to supply copies of documents a copy charge will be levied.
Value Added Tax
All our fees and disbursements are subject to VAT at the appropriate rate.
Insurance
Insurance Companies have become much more difficult particularly where properties are vacant for any period of time. The terms of your policy will almost certainly require you to notify the insurance company that your property is being let and that arrangements have been made for its inspection and protection while you are away. Please note that a claim may not be met if the insurer has not been advised that the property is let. Details of a special policy for your protection against costs during a letting are available on request.
We can advise on the correct re-instatement sum for which your property should be insured. A fee will be levied for this service.
General
- Please remember that your property and contents are subjected to the strains of everyday living while your are away. We must stress that it is vital you remove any items that are not easily replaceable. When you return to your property, it will rarely be in the same condition that you remember when you left.
- The cost of maintenance to your property is allowable against income tax whilst the property is let. This can help your tax position, but the work must be done while the property is let. You may also be able to claim for depreciation on your fixtures, fittings and equipment against income tax while the property is let.
- We will approve maintainance and repair expenditure up to £200 plus VAT, which will be shown on your monthly expenditure. Only in emergency, or when you are out of telephone contact, will a larger commitment be made without direct reference to you.
- Unless special arrangements are made, our Management will operate only for the period during which your property is let.
- Where the cost of repair or maintenance work which we arrange exceeds £150, we charge a supervision fee of 10% of the invoice cost.
- We have to allow 7 working days from the banking of a tenant's rent cheque until we can account to you, because Clearing Banks cannot GUARANTEE to clear cheques in less time. The balance can be paid to you or direct to your Bank; a statement will be sent to you at the same time.
- We cannot pay outgoings on your behalf in excess of money available to us.
- We will question obvious errors on suppliers' invoices, but will accept any pay bills on your behalf which appear to be correct.
- You should advise your Insurers, both of the buildings and the contents, of your intention to let your property. They may advise on any additional cover or exceptions that are necessary.
- Please ensure that all water storage tanks and pipework are sufficiently lagged, and there are effective stop taps. A note of their location left in the property may save problems.
- Should we become aware of any breaches of the terms of the Tenancy Agreement, you will be informed, Where legal action is necessary, we will Liaise with you on the instruction of a solicitor.
- With any electrical equipment or heating system, instruction books should be provided. It is advisable to have Service Contracts for routine maintenance.
Selling Your Property
Our residential Sales Department will be happy to advise on the value of your property for sale. Our fee for the introduction of a tenant who subsequently purchases the property will be 1% plus VAT of the price realised. If the property is placed on the market, the fee will be open to negotiation.
Contact Numbers
It is important that we hold a telephone number of either you or a person nominated by you, who can act on your behalf. We hope that it will not be necessary to use it, but we try to be prepared for ALL situations. If at all possible a FAX number is very useful, as this allows us to convey clear and concise information to you quickly.
Tenancy Deposit
In this section, “ICE” is defined as the 'Independent Case Examiner of The Dispute Scheme'
B 1. We are members of the Tenancy Deposit Scheme, which is administered by:
The Dispute Service Ltd
P0 Box 541
Amersham
Bucks
HPB 6ZRphone 0845 226 7837
email : deposits@tds.gb.com
web : www.thedisputeservice.co.uk
fax 01494 431123
B 2. If we are instructed by you the Landlord to hold the Deposit, we shall do so under the terms of the Tenancy Deposit Scheme.
B 3. We hold tenancy deposits as Stakeholder.
B 4. At the end of the tenancy covered by the Tenancy Deposit Scheme
B4.1 If there is no dispute we will keep any amounts agreed as deductions where expenditure has been incurred on behalf of the Landlord, or repay the whole or the balance of the Deposit according to the conditions of the Tenancy Agreement with the Landlord and the Tenant. Payment of the Deposit will be made within 10 working days of written consent from both parties.
B4.2 If, after 10 working days following notification of a dispute to us and reasonable attempts have been made in that time to resolve any differences of opinion, there remains an unresolved dispute between the Landlord and the Tenant over the allocation of the Deposit it will (subject to B 4.3 below) be submitted to the ICE for adjudication. All parties agree to co-operate with any adjudication.
B4.3 When the amount in dispute is over £5,000 the Landlord and the Tenant will agree by signing the Tenancy Agreement to submit the dispute to formal arbitration through the engagement of an arbitrator appointed by the ICE although, with the written consent of both parties, the ICE may at his discretion accept the dispute for adjudication. The appointment of an arbitrator will incur an administration fee, to be fixed by the Board of The Dispute Service Ltd from time to time, shared equally between the Landlord and the Tenant. The liability for any subsequent costs will be dependent upon the award made by the arbitrator.
B4.4 The statutory rights of either you/the Landlord or the Tenant(s) to take legal action against the other party remain unaffected.
B4.5 It is not compulsory for the parties to refer the dispute to the ICE for adjudication. The parties may, if either party chooses to do so seek the decision of the Court. However, this process may take longer and may incur further costs. Judges may, because it is a condition of the Tenancy Agreement signed by both parties, refer the dispute back to the ICE for adjudication. If the parties do agree that the dispute should be resolved by the ICE, they must accept the decision of the ICE as final and binding.
B4.6 If there is a dispute we must remit to The Dispute Service Ltd the full deposit, less any amounts already agreed by the parties and paid over to them. This must be done within 10 working days of being told that a dispute has been registered whether or not you or we want to contest it. Failure to do so will not delay the adjudication but The Dispute Service Ltd will take appropriate action to recover the deposit and discipline us.
B4.7 We must co-operate with the ICE in the adjudication of the dispute and follow any recommendations concerning the method of the resolution of the dispute.
B 5. Incorrect Information
If the Landlord warrants that all the information he has provided to us is correct to the best of his knowledge and belief. In the event that the Landlord provides incorrect information to us which causes us to suffer loss or causes legal proceedings to be taken the landlord agrees to reimburse and compensate us for all losses suffered.
