Maximise your income – Minimise the risk

QUALITY LETTING AND PROPERTY MANAGEMENT

Letting your property is a big step! When taking this step you need to know that you have appointed the right company to protect your property. We are specialists in Letting and Property Management and you can benefit from our experience.

Here is what we can offer you:

• A computerised letting and allocation system.

• Expert advice on the right rental and the most suitable type of tenant.

• The right approach to marketing your property. We operate accompanied viewings and a broad based avertising strategy.

• We operate a thorough selection process operated by experts in this field.

• Computerised rent accounting enables us to supervise the payments of rentals efficiently.

• We account our landlords monthly.

• Organising routine repairs and maintenance.

• We organise statutory agencies.

The service we provide is tailored to the individual needs of the landlord. In essence we seek to provide you with a complete service which allows the owner of a rented property to go about their business without having to concern themselves about the day to day management of a tenancy. 

Terms and Conditions and Fees.

Full Management Service.

This service includes:

a.       Securing a suitable tenant through contact with a large number of companies registered with us, and advertising in local national and specialist publications where relevant. The property will be included in our regular property list and circulated. We will arrange for viewings on your property, accompanied where appropriate.

b.      Obtaining appropriate references and credit check.

c.       Collection of the deposit and first instalment of rent.

d.      Preparing a Tenancy Agreement and any relevant notices.

e.       Arranging and preparation of an Inventory of your property and contents, as a mutual Landlord/Tenant safeguard where required.

f.        Monthly rent collection.

g.       Payment of the proceeds into your bank account where required.

h.      Submitting accounts to you and your accountant where required.

i.        Where possible, make arrangements for meter readings and at commencement and termination of the Tenancy. Where possible, try to ensure that accounts are transferred into the Tenant’s name for the duration of the Tenancy.

j.        Arranging for the Tenant to be checked in and out of the property as required.

k.      Our Maintenance Manager will carry out a routine inspection of the property, if no serious defect requiring an inspection has been reported to us in the meantime. It should be appreciated that any such inspection and assessment of defects which are brought to our notice, will be of a cursory nature and embrace only apparent or obvious defects; it will not amount in any way to a structural or complete survey.

l.        Management includes the investigation of any defects that are brought to our attention. Minor repairs, will be arranged under our normal management service. For major repairs, we will arrange for estimates, submit these and supervise work at a fee of 5% of the total.

Let Only.

This service includes a,b,c and d as detailed in the Full management Service.

Management Agreement.

Signature by both parties to the Agency Agreement establishes an Agreement only. It does not create a contract.

Void Periods.

Our management facilities do not come into effect until a tenant has taken up occupancy.

Rental.

We will agree with you a rent to be quoted to potential Tenants. Unless specifically agreed otherwise, this will include all payments for which you are responsible, such as water rates, ground rents, etc.

Insurance.

You should make certain that your property and contents are adequately insured and that your policy covers lettings whether furnished or unfurnished.

Presentation.

To maximise the letting potential of your property and to minimise the periods when the property is empty, we strongly recommend that professional cleaners are contracted to thoroughly clean the property once it is vacated.

Tenancy Agreement and Charges.

A standard form of Tenancy Agreement is used. A charge for this is incorporated in the letting fee unless otherwise stated. We reserve the right to charge this fee. We would point out that we are not Solicitors and cannot offer you formal legal advice. We recommend that you consult your solicitor should you require further information on your legal position as a landlord.

Community Charge.

The Landlord is liable for Standard Community Charge for a property which is not his principle residence and is not let, or is let for less than six months.

The occupant is liable for personal Community Charge if it is their principal residence and he/she is in the property for a minimum of six months.

Rentals quoted by ourselves will be exclusive of the personal or Standard Community Charge.

Rent Remittances.

It is important to realise that once rent is received by us it then takes a minimum of five working days for the Bank to clear the cheque, after which the balance (less any deduction) is forwarded to you within fourteen days of the end of the calander month it is collected.

Leaseholders/ Mortgagors.

If your property is leasehold, please ensure that:

a.       Any intended furnished letting is permitted by the terms of your lease.

b.      Any Tenancy is for a period expiring prior to the termination of your lease.

c.       The written permission of the Landlord, if necessary,  is obtained for sub-letting.

If the property to be let is subject to a mortgage, please ensure that:

a.       Permission is obtained from the mortgagee to sub-let the property (it is advisable to obtain such permission at an early date prior to any sub-letting).

b.      Any joint owner’s permission has been received and that there name(s) appear on the Tenancy Agreement.

Changes of Tenancy.

If, during our Management, there is a change of Tenancy, we will arrange any cleaning and minor repairs of the property required for new tenants, as instructed by the owner of the property. The costs will be met by the Landlord.

Instruction of Solicitors.

Should any rent arrears or breaches of covenant be brought to our attention you will be informed. Thereafter, should legal action be thought necessary, you will be responsible for instructing your own solicitor and any fees or charges pertaining there to. 

Schedule of Dilapidations.

At the termination of a Tenancy, a Schedule of Dilapidations should be prepared. Any damage or dilapidation which may have occurred during the Tenancy is recorded on the schedule, copies of which are sent to both the Landlord and Tenant who mutually agree what amount is to be deducted from the Dilapidations Deposit.

Income Tax and Management Act 1970.

Income from UK property is subject to UK Income Tax even if the Landlord is resident aboard, or a Company registered overseas. In these circumstances, the Inland Revenue holds the agent liable for tax on the Landlord’s letting income (or the Tenant, if the rent is being paid directly to the Landlord). If it appears that we will be so assessed, we will set aside monies from the rent to meet our potential liability to the Inland Revenue. We cannot undertake to meet any tax claims or returns, or negotiate with the Inland Revenue on your behalf.

Indemnities.

The Landlord agrees to indemnify us as agents against any costs, expenses or liabilities incurred or imposed on us provided that they were incurred on his behalf in pursuit of our normal duties. We therefore recommend a landlord should prudently arrange insurance cover in respect of such matters for the term of the tenancy.

Every endeavour will be made to ensure the Landlord has the protection allowed in law to enable him to obtain possession of his property. In addition, every effort is made to provide a satisfactory Tenant but no responsibility/liability can be accepted by the Agent for damage caused to property or rental loss.

Signature.

A client’s signature on the Agency Agreement Statement signifies recognition and acceptance of the aforementioned conditions.

Withdrawal.

Either party may withdraw from this Agreement by giving three months notice.

RENTING PROPERTY

Things you need to know

1)      You will be the Landlord, not the agent.

2)      You should obtain the permission of your Building Society.

3)      You should retain responsibility for maintaining all Insurances.

4)      It is possible to insure against rental loss.

5)      You will be responsible for all repairs.

6)      Expenditure on maintenance agreements/repairs are tax deductible.

7)      You will need to pay your ground rent.

8)      Decoration should be clean and presentable .

9)      Furniture should be clean and presentable.

10)  Operating instructions should be provided for all equipment supplied.

11)  In furnished accommodation it is your choice to leave crockery, cutlery and cooking utensils , this will be your responsibility as a landlord to check these items.

12)  No sheets, towels etc., are necessary.

13)  In vacant property the refrigerator/freezer should be left off with the door open.

14)  All carpets should be left clean.

15)  If the garden is to be maintained by the tenants they should be left well cared for with secure fencing.

16)  Gas and electricity meter readings will be taken from the property prior to the tenant signing up.

17)  You will be responsible for the Community Charge/Council Tax due when the property is not occupied by tenants.

18)  You may be responsible for the payment of water rates .

19)  If you require us to refer to Specialist Suppliers in order to complete repairs we can do so if supplied with the necessary details.

20)  You should be aware of the Fire and Furnishings (Fire) (Safety) Regulations 1988 (amended 1989 & 1993) and the provisions it contains.

21)  You should be aware of the provisions and comply with the terms contained within the Electrical Equipment (Safety) Regulations Act 1994.

22)  You should be aware of the provisions and comply with the terms contained within the Gas Safety (Installation and Use) Regulations Act 1994.

MANAGEMENT FEES / COMMISSIONS

Comprehensive Residential Letting and Property Management

Initial Administration Fee                   £280.00

Commission on monthly rents            10%

Letting Only

Initial Administration Fee                   £280.00   

ADDITIONAL SERVICES

Subsequent costs of agreements for change of Tenancy                      £ 30.00

Evenmore Properties reserves the right to alter or amend these prices without prior notice

Advice Relating to Legislation Affecting Landlords and their Properties

The Regulations have been phased in as follows:-

In accommodation first let AFTER 1st March, 1993 furniture has to comply with the regulations immediately.

In accommodation first let BEFORE 1st March, 1993 furniture did not need to comply until 1^st January 1997.

From 1^st January, 1997 non complying furniture can only remain in the accommodation until the first new agreement is made with a new tenant. This new let counts as a new supply of the furniture and consequently all non-complying furniture must be replaced otherwise you will be breaking the law.

Any furniture owned and provided by the tenant is not covered by the Regulations.

How to buy safe furniture

If you purchase furniture from persons selling in the course of a business then that furniture should already comply fully with the regulated requirements.  However, experience has shown that much of the furniture sold by second-hand dealers may not comply – so extra care is needed.  You should also remember that furniture sold by “private individuals” may or may not comply – so again extra care is needed.

It is not easy to determine by external examination only, whether or not furniture does comply with the Regulations.  However, any furniture that does comply would have originally been sold with a permanent label stitched in (usually on the base of the furniture or on the underside of a cushion).  The label is headed “Carelessness Causes Fire”.  Consequently, an easy check is to look for the label.  Any upholstered furniture that does not bear such a permanent label should be regarded as suspect. 

Mattresses and Bed Bases (Further information – Trading Standards Service)

Mattress and bed bases should bear a blue label indicating compliance with BS7177:1991.

Mains Electrical Equipment (Further information – Trading Standards Service)

If electrical equipment is supplied with let accommodation then it must be safe.  This applies to such items as kettles, televisions, electric cookers etc.

The law does not stipulate that you have to have each item of electrical equipment tested.  However, it is strongly recommended that you should consider having items tested to protect your tenant from danger and yourself from possible prosecution and/or civil litigation.  Any tests should be carried out at reasonable intervals, bearing in mind the likely rate of usage of the appliance.  Make sure any test identifies clearly the equipment tested and keep such test reports for your own reference and to produce the enforcement personnel, if required.

Any plug on an electrical appliance must be a ‘standard plug’ i.e., of an approved type, with live and neutral pins sleeved and having the correct fuse rating for the appliance to which it is connected.  Mains appliances must by law be supplied fitted with a plug.

Gas Appliances

1.         Supply (further information – Trading Standards Service)

All new and second-hand gas appliances as part of a let must be safe and have clear instructions and warnings appropriate to their safe use.

2.         Installation and Use (further information – Private Sector Housing and         Health & Safety Executive)

Landlords must ensure that all gas appliances and flues (this includes bottled gas (LPG) cabinet heaters) are maintained and checked for safety at least every 12 months.  You must also keep records of maintenance and safety checks and make this information available to tenants, on request.

3.         Advisory

An LPG heater presents a health and safety risk due to it being a portable  source of heat.  In addition it creates severe condensation and this may contribute to the dwelling being unfit for human habitation.  Landlords are strongly advised not to provide LPG heaters to their tenants.

OTHER APPLIANCES AND GOODS (further information – Trading Standards Standards)

The above requirements relate to some categories of high risk goods/appliances.  Other goods/appliances not otherwise covered in these guidance notes, which are supplied for the use of tenants, must be reasonably safe.  Where instructions/warnings are necessary for the safe use of goods/appliances, these should be supplied in writing, together with the goods/appliances.

SECURITY

Having a burglar alarm is not compulsory but it may be a facility which a prospective client would look for.

We would advise that all external doors be fitted with five lever mortice locks.  It is also advisable to ensure that all windows capable of being opened are fitted with window locks.  This is often a requirement of household insurance.

HOUSING BENEFIT

Housing benefit is a benefit paid to individuals who wish to rent a property but who do not have sufficient income to support the contractual rent.  Housing Benefit is means tested and is subject to a number of Regulations limiting its scope.  It is administered by the Local Authority but the “Market Rent” ie., the rent used to establish the appropriate benefit level is set by the Rent Officer Service.  We advise Landlords to accept as the contractual rent the market rent set by the Rent Officer.

You are advised that Housing Benefit pay in arrears regardless of the contract conditions.  There may be an initial delay before payments are received whilst the initial assessment is made.

The Agency Agreement requires you to specify whether a Housing Benefit claimant would be acceptable to you.  Our representative will advise where appropriate.  The ultimate choice however is the Landlord’s.

SAFETY OF GOODS & EQUIPMENT SUPPLIED WITH LET ACCOMMODATION

What does the law require?

Current consumer safety legislation requires goods, including such items as gas cookers/heaters, electric toasters, televisions, furniture, etc., supplied in the course of a business to be reasonably safe.  Practically all goods are covered, both new and second-hand.  All goods have to satisfy general safety provisions.  Certain ‘high risk’ goods, including electrical equipment, upholstered furniture, gas cooking appliances, etc., are covered by requirements contained in specific safety regulations.

The supply of such goods in rented accommodation, in the course of a business, is considered to be a hire transaction and as such is covered by consumer safety legislation.  The following notes are intended as a guide to the law.

Furniture (for further information – Trading Standards Service)

Upholstered furniture must comply with Regulations covering flammability. These Regulations were brought into force to try to reduce the number of deaths resulting from toxic fumes given off up upholstered furniture in fires. Furniture that does not have a permanent label attached claiming compliance with the Furniture & Fittings (Fire)(Safety) Regulations should be regarded as suspect. Furniture made before 1950 is exempt.

The definition of furniture covered by the Regulations is wide. A DTI booklet, available from the Trading Standards Service, gives detailed guidance on the scope of the Regulations.

The Regulations control the supply of furniture in accommodation let in the course of a business. Providers of such furnished accommodation, including Estate Agents, Letting Agencies and Landlords acting in the course of a business, have to ensure that furniture in properties governed by the Regulations complies.

CONTRAVENTION OF ANY OF THE REGULATIONS, AS DETAILED IN THESE GUIDENCE NOTES, IS A CRIMINAL OFFENCE AND COULD RENDER YOU LIABLE TO PROSECUTION. MAXIMUM PENALTIES ARE A FINE UPTO £5,000 PER OFFENCE OR IMPRISONMENT FOR UP TO SIX MONTHS, OR BOTH.