Landlord Services
The Standard Management Service includes:
- Advising as to the likely rental income.
- General marketing of the property.
- Interviewing prospective tenants and taking up full references including bank reference, and employer or previous landlord character reference. Where necessary additional security would be requested by means of a guarantor. In the case of a company, a full bank reference would be taken.
- Preparing the Tenancy Agreement and corresponding Notice necessary for the Landlord to gain protection of the relevant Rent and Housing Acts, renewing the Agreement where necessary with regards to references and Tenancy Agreement.
- Liaising with a Landlord’s mortgagees where necessary with references and Tenancy Agreement.
- Taking a deposit from the tenant to be held by the letting agents Leicester in the Deposit Protection Scheme until the end of the tenancy when the property and contents have been checked for unfair wear and tear.
- Collecting the rent monthly and paying over to the Landlord monthly (normally sent within 15 days of collection) less any fees or expenses due or incurred for the period. Payments will be made by direct bank transfer unless otherwise requested. A detailed rent statement is sent quarterly.
- Arranging with service companies (principally electricity and gas) for meter readings and advising them of the transfer of service contracts to the tenant at the beginning of each tenancy.
- Regular inspections of the Property are carried out on a quarterly basis. Responsibility for and management of empty property is not normally included, and will only be carried out by special arrangement.
- Co-ordination of repair or maintenance including arranging for tradesmen to attend the property.
- Obtaining estimates where necessary, supervising works and settling accounts from rent received.
- Making payments on behalf of the Landlord from rents received for water rates, insurance premiums, etc.
- Carrying out a full property inspection and condition check at the end of the tenancy and dealing with matters relating to unfair wear and tear before releasing the tenant’s deposit.
- Forwarding Landlord’s mail.
- Additional items and other expenses will be charged according to the scale of fees defines below.
GENERAL AUTHORITY
The Landlord confirms that he/she is the sole or joint owner of the property and that he has the right to rent out the property under the terms of the mortgage or head of lease. When necessary, the Landlord confirms that permission to let has been granted by the mortgagee. The Landlord authorises the Agent to carry out various duties of property management as detailed 1-13 previously. The Landlord also agrees that the Agent may take and hold deposits on behalf of the Landlord. It is declared that the Agent may earn, from time to time, commissions on insurance policies issued.
INDEMNITY
The Landlord agrees to indemnify the Agent against any costs, expenses or liabilities incurred or imposed on the Agent provided that they were incurred on behalf of the Landlord in pursuit of the Agent’s normal duties. To assist the Agent in carrying out his duties effectively, the Landlord agrees to respond promptly with instructions where necessary to any correspondence or requests from the Agent.
MAINTENANCE
The Landlord warrants that the property is made available in good and lettable condition and that the property, beds, sofas and all other soft furnishings all conform to the current safety regulations. The Landlord agrees to make the Agent aware of any on-going maintenance problems. Subject to a retained minimum expenditure limit (UK Landlords: £100, Overseas Landlords: £200) on any single item or repair, and any other requirements or limits specified by the landlord, the Agent will administer any miscellaneous maintenance work that needs to be carried out on the property. It is agreed that in an emergency or for reasons of contractual necessity where reasonable endeavours have been made to contact the Landlord, the Agent may exceed the specified limits. The Agent endeavours to select competent tradesmen at a reasonable price but is unable to personally guarantee the standard of workmanship or any liability arising thereof, tradesmen for substandard work. By law it is necessary to carry out an annual inspection and service for the central heating and any gas appliances. The Agent will carry these out on the Landlord’s behalf and administer the necessary inspection and maintenance records.
OVERSEAS RESIDENTS
When letting property and collecting rents for landlords overseas, the Agent is obliged by the Taxes Management Act (TMA) 1970 (or under similar powers of any future tax legislation) to deduct monies (currently equivalent to 25% of the gross rents) to cover any tax liability. In this situation, the Agent also requests that the Landlord appoints an accountant in order to manage correspondence with the Inland Revenue. A standard annual charge will be made for this work and administration expenses may be charged by the Agent for further work requested by the Landlord, the Landlord’s accountant or the Inland Revenue in connection with such tax liabilities. In many case, the Landlord’s tax liability is minimal when all allowance costs are deducted.
COUNCIL TAX
Payment of Council Tax will normally be the responsibility of the tenants in the property. However, Landlords should be aware that where a property is empty, let as holiday accommodation, or let as a house in multiple occupation (HMO), responsibility for payment of Council Tax then rests with the owner of the property.
SERVICES
The agent will take meter readings whenever possible at each change of occupation in the property and inform the service companies (electricity and gas) of these readings and change of occupation. In many cases, the service companies (e.g. BT) require that the new occupiers formally request and authorise the service and its is not possible for the Agent to do this on the tenant’s or landlord’s behalf. Regarding mail, Landlords should take care to inform all parties (e.g. Banks, Clubs, Societies etc.) of their new address; it is not always possible to rely on tenants to forward mail.
INVENTORY
Preparation of an inventory does not form part of our service. However, as a result of the Introduction of the Tenancy Deposit Protection Scheme as per Chapter 4 of The Housing Act 2004, we would strongly advise that a full, professional, unbiased inventory is prepared. Without such a document, it may be difficult to prove any damage caused by the Tenant at the end of the Tenancy and therefore difficult to appeal to be reimbursed from the Tenants Deposit.
We are able to arrange for a full inventory to be prepared on the Landlord’s behalf but this is at additional cost and this cost will depend upon the size and nature of the property.
ENERGY PERFORMANCE CERTIFICATE
From 1st October 2008 any residential property that is being offered “For Let” will require, by law, an Energy Performance Certificate (EPC). EPC’s are being introduced to help improve the energy efficiency of buildings. Latham & Co Lettings are happy to arrange for an EPC to be carried out on the property at a cost of £60 + VAT Payment is required in advance. Cheques should be made payable to Solar Energy Surveyors. Alternatively, a landlord may provide us with an existing EPC or arrange for one to be carried out by their own supplier.
LETTING AGREEMENT
The standard management service includes the preparation of a letting agreement in the Agent’s standard form (s) and provision of a copy of this agreement to a designated advisor or Building Society. Should the landlord or his advisors or mortgagees require amendment of the contract or require the Agent to enter into further work or correspondence, a further fee for this work may be requested. It is agreed that the Agency may sign the tenancy agreement (s) on behalf of the Landlord.
PAYMENT OF RENT
The Agent undertakes to pay rent to Landlords as soon as is practicably possible after the date it has been received from the Tenant. In most cases, rent will be paid to the Landlord within 14 days of receipt from the Tenant. However, under no circumstances can the Agents be held accountable for any penalties imposed by either a mortgage lender, bank or building society for late payments.
INSPECTIONS
Under the standard management service, the Agent will normally carry out inspections quarterly starting after the first month. It is not the intention to check every item of the inventory at this stage; the inspection is concerned with verifying the good order of the tenancy (i.e. house being used in a “tenant-like” manner) and the genera; condition of the property. This would normally include inspecting the main items (carpets, walls, cooker, main living areas and gardens). Where these were felt to be unsatisfactory, a more detailed inspection would generally be made.
Following the departure of the tenants, a final inspection of the property is carried out by the Agent. Testing of all the electrical appliances, heating system and plumbing is not feasible during this inspection; a qualified contractor should be appointed for this purpose should it be required by the Landlord. Any deficiencies or dilapidation’s would normally be submitted to the Landlord together with any recommended deductions or replacement values. It is agreed that the Agent’s judgement will be final in this matter. Should it be necessary, the case will be referred to arbitration with the Association Of Residential Letting Agents, and any costs being shared by Landlord and tenant, or as directed by the arbitrators.
DEPOSITS
As a result of the Tenants Deposit Protection as per Chapter IV of the Housing Act 2004, we are required to protect Tenant Deposit monies. Latham & Co are members of the Deposit Protection Scheme and as such all deposits taken by us are registered with the scheme. These deposits are held in a separate and secure Client Account ready for refunding at the end of the Tenancy. As a result of the legislation contained within Chapter IV of the Housing Act 2004, we are required to arbitrate between Landlord and Tenant should a dispute arise over deductions from the deposit for damage. If we are unable to reach a mutually satisfactory agreement between the Landlord and Tenant, then we are required to submit both the deposit and details of the dispute to the Alternative Dispute Service for resolution.
TERMINATION
This agreement may be terminated by either party by way of three month’s written notice. The minimum fee applies if on termination the total fees due are less than the minimum fee. A placement fee equivalent to one month’s rent will be payable where the Landlord intends to continue letting to tenants introduced by the Agent after termination of this agreement.
The Landlord shall provide the Agent with any requirements for return and repossession of the property at the earliest opportunity. Landlords should be aware that any tenancy agreement entered into on the Landlord’s behalf is a binding legal agreement for the term agreed. Details of any tenancy agreement being entered into will be communicated to the Landlord as soon as possible. Landlords should be aware that the legal minimum notice period to tenants under assured tenancies is generally two months (should the contract allow for early termination) and this needs to be given even in the case of a fixed term tenancy which is due to expire.
If a court attendance is required a fee of £150 plus VAT will be charged for our time.
SAFETY REGULATIONS
The letting of property is now closely regulated with respect to consumer safety. The law makes particular demands regarding the safety, servicing and inspection of the gas and electric appliances and installations within a property, and with respect, to the type of any furniture and soft furnishings that are also provided. The following regulations apply;
- Furniture and Furnishing (Fire Safety) Regulations 1988
- Gas Safety (Installation & Use) Regulations 1994
- Electrical Equipment (Safety) Regulations 1994
The Landlord confirms that he/she is aware of these obligations and that the Agent has provided sufficient information to assist with compliance. It is agreed that the Landlord shall ensure that the property is made available for letting in a safe condition and in compliance with above regulations. The Landlord agreed to indemnify the Agent against any expenses or penalties that may be suffered as a result of non-compliance of the property to fire and appliance safety standards.
INSTRUCTIONS
It is agreed that any instructions to the Agent from the Landlord regarding termination, proceedings, major repairs, payment details or other significant details regarding the letting be confirmed to the Agent in writing.
SALE OF PROPERTY
In the event of a party introduced by the Agent (or any person or body corporate associated with that party) subsequently purchasing the property, whether before or after entering into a tenancy agreement, commission shall be payable by the Landlord to the Agent on completion of the sale at a minimum of £1200.00.
WITHDRAWAL OF THE PROPERTY
If the property is withdrawn from our register after an application fee has been received, Latham & Co Lettings will charge a withdrawal fee of £295 including VAT, plus the cost of a Landlord Gas Safety Certificate if applicable.
INSURANCE
The Landlord shall be responsible for the property being adequately insured and that the insurance policy covers the situation where the property is let.
LEGAL PROCEEDINGS
Any delays of payment or other defaults will be acted on by the Agent in the first instance. Where the Agent has been unsuccessful in these initial actions, or there are significant rent arrears or breaches of the tenancy agreement, the Landlord (expect where the Agent is unable to contact the Landlord, in which case the Agent) is authorised to instruct a solicitor on the Landlord’s behalf. The Landlord is responsible for payment of all legal fees and any related costs.
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