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Holmes Residential Lettings.
Terms and Conditions of Business for Landlords.
1. We will assume that:
a) any intended 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 your Freeholder, if necessary, is obtained for sub-letting
2. We will assume that if the property to be let is subject to a mortgage, permission is obtained from the mortgagee to the letting. It should be noted that the mortgagee would usually have the power to terminate the letting if mortgage payments are not maintained and other requirements complied with. You should advise us if there is a mortgage in place so that the requisite notice can be served on the tenant.
3. We require that authority to let the property is obtained in writing from any joint owner(s) who should be named in the tenancy agreement.
Fees
We will contact you for approval of any potential tenant, or agree in advance with you the extent of our authority to accept a tenant on your behalf.
Option 1. Once the tenant has entered into an agreement, our Finders Fee is 75% of the first months rental, subject to a minimum of £300.00, plus vat. Our commission is payable in full in advance on the commencement of the tenancy.
Option 2. If we are collecting the rent on your behalf our fees are 10% + vat of the total rent payable. Please note that if we are finding a tenant under this option we will collect our Finders Fee on 25% + vat of monthly rent,. We will deduct our fees as the rent is collected and pay the balance over to you within 10 working days of receipt of cleared funds.
Option 3. If we are providing our Management service (which includes
Option 2), on your behalf, our fees are an additional 2.5% (total 12.5% plus vat), of the total rent payable. Please note that if we are finding a tenant under this option we will collect our Finders Fee on 25% + vat of monthly rent,. We will deduct our fees from the rent collected and pay the balance over to you within 10 working days of receipt of cleared funds.
If at any time during the initial tenancy, or during any renewal or extension thereof, the service we provide is reduced to introduction only, then the fee of 10%, subject to the minimum as aforesaid or the balance thereof, will become payable immediately in full, for the period the tenants remain in the property.
In the event of the Landlord withdrawing the property from the market, after a holding deposit has been received, and the proposed terms of the tenancy have been confirmed in writing to the Landlord and providing that references are satisfactory, a fee of £150.00 plus VAT will be payable by the Landlord to cover “Holmes” costs.
Letting Services
Option 1. Introduction Only:
The services included in our commission are:
(a) Marketing the property at our office, via the internet if necessary, and through the local paper.
(b) Accompanying prospective tenants to view the property and receiving offers.
(c) Confirming the details of any offer in writing to both parties including any special conditions.
(d) Taking up references, either via a credit referencing company or bank, employer, previous Landlord if applicable and personal reference. A Company search can be undertaken if required and would be charged separately.
(e) Collecting any dilapidation deposit paid by the tenant, (subject to the Tenancy Agreement agreed between both parties), and send on to the Landlord’s prefered Deposit Protection Scheme. “Holmes” will require proof of the Landlords Membership number of the chosen scheme if the Landlord requires the deposit to be sent to them.(f) Notifying service companies, (gas, electricity and water) of a user change at the commencement and termination of a tenancy (without liability on our part). It should be noted that we are not able to change the telephone account, as instructions will only be accepted from the new account holder.
(g) Notifying the local authority of the change of occupant for council tax at the commencement of the tenancy.
(h) Unless specifically instructed otherwise, we will erect an advertising board which shall be maintained for the duration of the marketing period and at least until the commencement of the tenancy.(i) Prepare and draw up the Assured Shorthold Tenancy.
Option 2. Rent Collection Service:
Additional services included in our commission are:
(a) Arranging tenants to sign standing orders for the payment of rent to “Holmes” and advising Landlords of any non-payment within 14 days of the due date.
(b) In the event of non-payment we will contact the tenants by telephone and letter, at weekly intervals.
(c) Submitting detailed statements of invoices and accounts on a monthly basis.
(d) Collecting and holding any security deposit paid by the tenant, as stakeholders, (subject to the Tenancy Agreement agreed between both parties).
Option 3. Management Service:
Additional Services included in our commission are:
(a) Be your intermediary and liase between you and the tenant and any contractors required to maintain the property in a lettable condition during the tenancy.
(b) Settle contractors invoices and expenses for approved works, and copy to you.
(c) Serve, or arrange to be served, on the Tenant the required notices for terminating the tenancy
(d) Supervise the exit, take meter readings, contact the utility companies.
Rent
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 ground rent and service charges. Please note however, that it is normal for the tenant to take over responsibility for the gas, electricity, charges for water and sewage disposal and telephone accounts during a tenancy, to pay for any other fuel used and to be responsible for the council tax.
Security Deposit
Unless otherwise instructed this amount will be a minimum of one month and a half rent paid to Holmes as stakeholders between the parties.
Inventories
We recommend and advise all Landlords to employ an independent inventory company to produce an inventory and check the inventory at the commencement and termination of the tenancy. We will be pleased to recommend an inventory company to you. Please advise us of the company to be used so are records can be updated. We cannot be held responsible for any error or omission on the part of the Inventory Company. The fee for making the inventory is payable by the Landlord, the fee for checking in and checking out the inventory is payable by the landlord. The appropriate sums will be charged to meet the Inventory Company’s invoice.
Schedule of Deductions
At the termination of a tenancy, the appointed Inventory Company will prepare a schedule of condition of the property. Any missing items or damage which may have occurred during the tenancy is recorded on the schedule, copies of which are sent to both Landlord and Tenant who will endeavour to mutually agree what amount, if any, is to be deducted from the security deposit. “Holmes” will not become involved in any way in the agreement of deductions which must be negotiated directly between the Landlord and Tenant. In the event of any dispute the inventory clerks decision shall be accepted by both parties as full and final. Holmes are members of the Ombudsman of Estate Agents, and should further dispute arise then details will be sent to a recognised Tenancy Dispute Service.
Tenancy Agreements and Charges
Unless instructed to the contrary our standard form of tenancy agreement is used, our charge for which is shared equally between the Landlord and the Tenant. The amount may vary according to the type of tenancy and our staff will advise you of the cost before preparing the agreement. For a renewal of a tenancy to an existing tenant, a new agreement will be drawn up for your protection, our charge for which is the original agreement fee, shared equally between the Landlord and the Tenant. Although our documents are constantly reviewed and updated by our legal advisers, we must point out that we are not solicitors, we cannot advise you on legal technicalities; you should consult your on solicitor if you require further information about your rights and obligations as a Landlord.
Rent Remittances
Rent is usually paid to us by cash or standing order. We undertake to forward the balance of the rent, less any deductions for commission, expenses, contractors invoices etc., within ten working days of the receipt of cleared funds into our account. If a cheque is submitted a further 5 working days should be allowed for clearance.
SAFETY REGULATIONS RELATING TO LET PROPERTY
The Electrical Equipment (Safety) Regulations 1994 state that all electrical appliances supplied in Let accommodation are tested for earthing, insulation and leakage and must be safe. Cabling, fuses and plugs must also be inspected and replaced where necessary to the correct rating for that particular appliance. This applies to both new and second hand appliances and covers all electrical items supplied for the intended use of the tenant. All New appliances must be CE marked and instruction booklets for all appliances must be given to the tenant at the commencement of the tenancy. The only sure method of ensuring that these appliances comply with the regulations is to have them tested by a qualified electrical engineer. The regulations also cover fixed appliances such as cookers, showers and immersion heaters, which must also be safe. Tests and inspections should be made annually.
Please note that electrical testing is mandatory if we are providing our management or rent collection service. In these instances we will arrange for an inspection by a qualified engineer and deduct the relevant amount from your account. The frequency of testing depends on the age of the property.
THE GAS SAFETY (INSTALLATION AND USE) REGULATIONS 1998
These regulations came into effect to ensure that Gas Appliances are properly maintained in a safe condition so as to avoid the risks of carbon monoxide poisoning. It is the responsibility of Landlords of domestic properties that all “Gas Appliances” and “Gas installation pipework” are checked for safety once a year by a member of the Council for Registered Gas Installers (CORGI) and that accurate records are kept of those safety inspections and any work carried out. These records must be made available for inspection by the tenant. “Gas installation pipework” includes Gas Pipework, Valves, Regulators and Meters. If we are managing your property we will arrange for an annual inspection by a qualified engineer and deduct the relevant amount from your account.
FURNITURE AND FURNISHINGS (FIRE) (SAFETY) REGULATIONS 1998 AMENDED
The above regulations were amended in 1993 and have set new levels of fire resistance for domestic upholstered furniture and furnishings. It is now an offence to supply in the course of a business any furniture which does not comply with the regulations. This includes supplying furniture as part of a let residential property.
The regulations apply to sofas, beds, bed-heads, children’s furniture, garden furniture suitable for use in a dwelling, scatter cushions and pillows, stretch or loose covers for furniture and other similar items.
Any additional or replacement furniture supplied since 1st March 1993 must comply with the regulations. Any furniture manufactured after March 1990 is likely to comply but if the appropriate labels are not affixed to the furniture, compliance is in doubt and checks should be made with the manufacturer.
Failure to comply with any of these safety regulations may jeopardise the life of your tenant and lead to prosecution with fines of up to £5000.00 or even imprisonment for 6 months, or both. Furniture Manufactured prior to 1950 is exempt unless re-upholstered since 1950.
Insurance
Your property and contents must be comprehensively insured. You must inform your insurers of your intention to let the property as failure to do so may mean rejection of any future claim.
Prior to Letting
Unless we have agreed to do so prior to the commencement of the tenancy, you are responsible for ensuring that the property is in a good condition for letting. In particular it must be professionally cleaned and be in good repair with all appliances in working order.
The property must comply with all current legislation regarding the electrical installation and equipment, the gas installation and appliances and all furniture and soft furnishings. The appropriate testing and valid certificates are mandatory prior to any tenancy commencing. If we are not supplied with existing certificates we will instruct contractors to carry out the relevant testing at the cost of the Landlord.
Management
We can also undertake the following Management Services
1. Outgoings
We will arrange to pay on your behalf current outgoings such as rent, insurance premiums, service charges, etc. that we are made aware of. We cannot accept responsibility for the adequacy or otherwise of any insurance cover, not can we verify service/maintenance charges, demands or estimates. Although we use our best endeavours and query any obvious discrepancies as we discover them, we must emphasise that we are entitled to accept and pay on your behalf demands and accounts, which appear to be correct at the time of such payments.
2. Inspections
We will carry out, if requested, an initial inspection three months after the commencement of the tenancy. It should be appreciated that any such inspection and assessment of those defects which are brought to our notice, would be of a cursory nature and would embrace only apparent or obvious defects and would not amount in any way to a structural or complete survey. Any further inspection by us at six monthly intervals until the tenancy expires, or survey carried out by a qualified surveyor or engineer would be by special arrangement and subject to an additional fee.
3. Repairs replacements etc
Management includes the investigations of defects, which may come to our notice, or any defect, which is properly brought to our attention by the Tenant.
Work costing up to £275.00 for any one item will be dealt with as they arise by our property managers without further instruction from you.
Where works are likely to exceed £275.00 as advised by the contractors we will contact you prior to instructing works except in the case of an emergency.
We will endeavour to use any contractors that you have specifically nominated for repair work at the property but cannot guarantee to do so.
Where repairs/renewals, replacements, necessary decorations etc. are liable to cost more than £500.00 we will wherever practical submit to you estimates, the exception being in cases of an emergency. Upon your acceptance of any estimates, providing that we are in funds, we will instruct the works to commence.
Works undertaken that will require supervision and inspection by a qualified surveyor shall be subject to a fee of 10% plus vat, of the total cost. Works of this type will be discussed and agreed with the client prior to the commencement of such works.
If you wish us to make a claim on your insurance on your behalf an additional fee of 10% plus vat, of the total value of the claim will be charged, for our administration costs.
4. Schedule of Deductions
On receipt of the schedule we will obtain estimates for larger works if appropriate. We will then submit the same with the inventory clerks decision as to appropriate deductions, if any, from the security deposit, to both Landlord and Tenant requesting agreement in writing for the deposit to be apportioned as per the schedule.
If we have not been able to secure the written agreement of both parties within two months from this submission then we reserve the right to contact the TDS for deposit resolution between both parties on the basis of the schedule. Both parties will accept the decision as full and final.
5. Keys
The Landlord must supply one set of keys for each tenant and in addition one set for the management of the property, to be held at the branch. If you are unable to do so, we will cut additional keys at your expense.
Terms of Management
Unless otherwise agreed in advance, our appointment as managing agents is for the duration of the tenancy and any renewal or extension thereof to the same tenant, subject to three months notice to terminate, in writing from either side.
From the moment of instruction and during the full term of management, we will held a maintenance reserve of £250.00 from the rent received, to enable us to instruct works to be carried out at the property, both in an emergency and in the normal course of management. We reserve the right to reimburse this working balance out of net rent received from the tenant. Such funds are held in our clients account and as the balance will fluctuate frequently no interest is payable.
This working balance must be maintained, as we cannot service any out-goings exceeding the amount held by us on your account.
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