Page 14 - Fresh Landlord Brochure

GUIDANCE & TERMS OF BUSINESS:
KEYS:
For all Fully Managed services you should supply us with 3 sets of keys at the point of instruction. For any Rent Collection or Finders Fee service we will require a minimum of 1 set of keys. All keys are coded and kept securely at our office.
When letting property and collecting rents for landlords overseas, the Agent is obliged by the Taxes Management Act (TMA) 1970 and the Taxation of Income from Land (Non-Residents) Regulations 1995 to deduct tax (at the basic tax rate) to cover any tax liability, unless the landlord has been authorised in writing by Inland Revenue to receive rent gross. The Agent reserves the right to make an additional administrative charge should additional work be required in dealing with the Inland Revenue.
We will require any overseas landlord to complete a NRL1 form to be sent to HM Revenue & Customs who will in turn send the Agent a certificate to enable the release of all funds. If this applies, please request this form and the Agent can help provide it. Alternatively, you can download from www.hmrc.gov.uk
Please note that within this document Fresh Estate & Letting Agents Limited will be known as the Agent. The landlord as detailed on the completed instruction form will be referred to as the Landlord and the property as detailed on the completed instruction forms will be known as the Property.
An Assured Shorthold Tenancy Agreement will be drawn up as standard for the protection of both the Landlord and Tenant(s). If the Tenant(s) breaches any covenants or any rental arrears arise requiring legal action this will be the responsibility of the Landlord, although the Agent will provide assistance with any action or claim. If the Landlord requires rental warranty and legal protection the Agent can help arrange policies at the point of instruction.
OVERSEAS RESIDENTS:
TENANCY AGREEMENT:
For managed properties and instructions the managed service and fees that apply do not terminate at the end of a fixed term tenancy. The Agent continues to manage the property and is due management fees for as long as the Tenant(s) put in place by the Agent remain at the property including during the initial fixed term tenancy, periodic tenancy or any new tenancy put in place between the Landlord and Tenant(s). See termination terms on terminating our services during a managed instruction.
ENERGY PERFORMANCE CERTIFICATE:
NOTE. The Landlord gives the Agent permission to sign the tenancy agreement, notices and any relevant documentation on behalf of the Landlord.
Since the 1st October 2008 all rental properties that fall vacant must obtain an EPC for any future tenant(s) to inspect. Each EPC must be prepared by a qualified assessor, and once complete will be valid for a 10 year period.
INVENTORY:
We at Fresh Estate Agents can arrange for an EPC to be put in place at a cost of £90 (£75 + VAT).
Payment of Council tax will normally be the responsibility of the tenant(s) 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:
For our Fully Managed service the Agent will take meter readings whenever possible at each change of occupation in the Property and inform the service companies (electricity, gas, council tax and water) of these readings and change of occupation. For all Finders Fee and Rent collection services this will be the responsibility of the Landlord. In many cases, the service companies (e.g. BT) require that the new occupiers formally request and authorise the service and it is not possible for the Agent to do this on the tenant(s)’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 tenant(s)s to forward mail.
HOLDING FEES & DEPOSITS:
A refundable holding deposit is generally taken from a Tenant(s) applying to rent a property. The purpose of this fee is to verify the Tenant(s) serious intent to proceed and to protect the Agent against administrative expenses (taking out bank references, conducting viewings, re-advertising) that may be incurred should the tenant(s) decide to withdraw the application. The holding deposit does not protect the Landlord against loss of rent due to the tenant(s) deciding to withdraw, or references proving unsuitable although early acceptance of rent from the applicant would not be advisable until satisfactory references have been received. Landlords should notify the Agent where they wish for a larger security deposit to be taken in advance and in writing.
Upon signing the tenancy agreement, the Agent will take a dilapidations deposit from the Tenant(s) in addition to any rents due. This is normally set at £100 over and above the monthly rent level. The purpose of the dilapidations deposit is to protect the Landlord against loss of rent or damage to the Property during the tenancy itself. For our Fully Managed clients we will both register the deposit with a suitable deposit scheme and inform the Tenant(s).
For our Fully Managed Landlord clients we will aim to return the bond to the Tenant less any agreed deductions in a fair and professional manner. If a dispute arises over deductions and the case is referred to the chosen bond scheme the Agent will put a case forward on behalf of the Landlord. If the case goes against the Landlord/Agent the Landlord indemnifies the Agent against any loss.
For all Finders Fee and Rent collection clients it will be the responsibility of the landlord to both register the tenancy and inform the tenant(s)s of the registration within the required 30 days of receipt of the monies being paid.
It is agreed the Agent will be the sole letting agents for a 6-week period from the date of instruction. If after 6 weeks the Agent has not secured a tenancy the landlord may give 2 weeks written notice to add an additional marketing agent or terminate the instruction altogether.
In the event of an existing Tenant(s) wishing to purchase the managed property, and a sale arises, our fee as selling agents will be a fixed fee of £600 (£500 plus VAT).
The Agent shall be entitled to retain interest earned on any money held on the Landlord’s behalf and any commission or referral fees from but not limited to insurance companies, referencing companies, utility companies, contractors and any fees charged to tenants earned while acting on the Landlord’s behalf.
A comprehensive inventory is required for the Property. For a Managed service the Agent will prepare the inventory once a potential Tenant(s) has agreed to rent the property, and references are complete. The fee for this will be charged as outlined in this brochure. Should the Landlord instruct the Agent on a Finders Fee or Rent Collection basis the Agent could arrange to put an inventory in place for an agreed administration fee. This fee will depend on the size and if the property is furnished or unfurnished.
COUNCIL TAX:
NOTE: It is important that all floors, carpets and curtains are thoroughly clean before a tenant(s) moves in.
All personal and treasured possessions should be removed as well as excessive amounts of crockery, cutlery and utensils. Also, any electrical equipment such as televisions and Hi-Fi equipment should only be left in the knowledge that the landlord will be responsible for any mechanical breakdown.
INSPECTIONS:
Under the Full Management Service, the Agent will normally carry out inspections quarterly. 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(s)like’ manner) and the general condition of the Property. This would normally include inspecting the main items (carpets, walls, cooker, main living areas and gardens).
Following the departure of Tenant(s), the Agent carries out a final inspection of the Property. 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 the Landlord require it. Any deficiencies or dilapidations would normally be submitted to the Landlord together with any recommended deductions or replacement values.
RENTAL PAYMENTS:
Landlords are paid monthly direct into the instructed private Bank/ Building Society. Rent is collected each month and paid either mid month or at the end of the month. Payments received and cleared by the 7th of the month will be paid over to you within 3 to 4 days of the 7th. Payments received and cleared before the 21st of the month will again be paid over to you within 3 to 4 working days of the 21st. All client monies is held in our ‘Client Account’ through Lloyds Bank. Mailing Address: PO Box 1000, Andover BX1 1LT.
If you are relying on any rent payment to meet your own financial commitments, please allow an advance of 5 working days to allow for any delays. We cannot be held responsible for any cost incurred through your own mortgage company as a result of non-payment or payment dates being missed.
LANDLORD STATEMENTS & ADDITIONAL END OF YEAR STATEMENTS
Landlords will be supplied with a single copy of each landlord statement for each payment made. These will normally be sent via email and should be retained for tax purposes. If the Landlord requests an end of tax year statement this will be charged out at £60 (£50 plus VAT).
REASONABLE COSTS AND EXPENSES:
SOLE LETTING RIGHTS:
The Landlord agrees to repay the Agent for any reasonable 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 to any correspondence or requests from the Agent.
MAINTENANCE:
The Landlord agrees to provide the letting property in a good and lettable condition and that the property, beds, sofas and all other soft furnishings conform to the current fire safety regulations. The Landlord can agree to give the Agent a maximum spend amount without the need for authorisation. For expenditure in excess of this, the Agent would normally request authorisation in advance, although 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 reasonably exceed the limits specified.
By law, it is necessary to carry out an annual landlord gas safety inspection for the central heating and any gas appliances. (On a Fully Managed Service the Agent will carry this out if instructed). The reasonable costs involved will be debited to the landlord’s account.
PROPERTY SALES:
INTEREST & COMMISSION:
TERMS &CONDITIONS