Advice
IMPORTANT INFORMATION FOR LANDLORDS
There are a number of considerations when renting a property in London. The information given here is designed to provide some background to the process of letting property through GREEN LOCATIONS and to offer other useful information. It is not intended to be a substitute for other professional advice or to replace the personal service we extend to all our clients. The first part of this document is primarily aimed at Landlords and the second part at Tenants but the whole document contains relevant information for both parties
IMPORTANT INFORMATION FOR TENANTS
There are a number of considerations when renting
ADVICE TO LANDLORDS
WHAT IS ARLA?
The Association of Residential Letting Agents is the only professional body that is solely concerned with the self-regulation of letting agents and it actively promotes the highest standards across every aspect of residential lettings and management in the private rented sector. In 2007 ARLA and the National Association of Estate Agents (NAEA) combined to form the National Federation of Property Professionals (NFOPP) to provide a wider expertise for members in residential sales, letting and management.
WHY SHOULD A LANDLORD OR TENANT SEEK OUT AN ARLA MEMBER FIRM?
Probity and Protection – ARLA leads the industry in setting and regulating the highest standards and demands certain levels of professionalism and commitment to customer service from its membership.
ARLA members are required to work within a robust Code of Practice, which covers the key stages in letting and managing a property. There are comprehensive byelaws which include compliance with such issues as handling and accounting for Client’s money; the mandatory Client protection Bonding Scheme; Professional Indemnity Insurance; dealing with complaints and disciplinary procedures.
OUR SERVICES
The two main services we offer are Letting and Letting & Management. The former relates to the process of finding a suitable Tenant and the latter relates to the business of managing property on a day to day basis. Full details of the services and our fees are outlined in our Terms & Conditions of Business.
We will advise Landlords on the likely rent their property will achieve and the process of letting out property. On receiving an instruction to let a property we will market it through general advertising, mailing lists, websites, window displays, and our contacts to attract suitable applicants. We will arrange viewings by appointment but usually we hold keys - access to property at short notice can be important.
All offers are put to Landlords with our recommendation and some background information on the applicants. Once an offer has been accepted we will usually take a week’s rent as a holding fee so the property can be taken off the market. We will take up references, draw up an Agreement and ensure the necessary steps are taken to ensure the property is ready for the tenancy to commence.
Once the tenancy has commenced, if we are managing the property, we will continue to be involved on a day to day basis, dealing with any problems the Tenants may encounter. We will visit the property every four months to ensure that the covenants in the Tenancy Agreement are being complied with and that the property is being kept in good order, and report to you accordingly.
REFERENCES
Before a tenancy can be granted, we take up references on each Tenant (Corporate Tenants may not be referenced in the same way). This is normally undertaken via a credit search agency. In some instances, e.g. in the case of younger Tenants or where there is insufficient employment or UK financial history (e.g. of less than one year), it may be necessary to request the provision of a Guarantor who is prepared to undertake responsibility for the full amount of the rent shouldthe Tenants be unable to do so at any time during the Tenancy. He/she will be required to co-sign the Tenancy Agreement and allow references to be taken on them. The cost of all credit search fees is paid by the Tenant.
TYPES OF TENANCY AGREEMENTS
The Tenancy Agreement must be signed prior to occupation. The Agreement will in most cases be a standard contract to which may be addedclauses relating to any special requirements or terms agreed. In some cases the type of tenancy created is an Assured Shorthold Tenancy in accordance with the Housing Act 1988. This applies to most tenancies where the rent is under £25,000 per annum to an individual or individuals for whom the property will be their main or principal home and where the Landlord does not enjoy resident Landlord status. Where the Tenancy does not fall within the scope of the 1988 Housing Act, a Company or Contractual Tenancy will be arranged.
Generally properties are rented on an annual basis, but the tenancy can be for any term agreed between the Landlord and Tenant. However under the provisions of the Housing Act 1988 repossession cannot be granted by the courts from a Tenant unwilling to vacate a property in the first six months of a tenancy, therefore we prefer wherever possible to arrange tenancies with a minimum term of six months. If required a release clause to end the tenancy before the expiry of the agreed fixed term, or an option to renew for a further term can be inserted into the contract, however, this is subject to negotiation. Once the tenancy has commenced the Tenant has security of tenure for the fixed period, provided they are not in breach of the terms of the Tenancy Agreement. We will inform you of any breaches that come to our attention.
At the expiry of a fixed term tenancy the Landlord can take possession of his property. In the case of an Assured Shorthold Tenancy the Landlord must first serve two months notice of his intention to do so. We will do this on your behalf unless it is agreed between you to renew the tenancy for a further term.
STAMP DUTY LAND TAX
Under the Finance Act 2003, which came into effect from 1 December 2003, the Landlord no longer has any liability for Stamp Duty on any Lease created for a Residential Letting after that date. Where applicable, the sole responsibility for the payment of the Stamp Duty Land Tax, which was introduced under the Finance Act 2003, is placed on the Tenant.
THE RENT
Unless otherwise stated, rent is exclusive of telephone, water, gas, electricity and council tax. The usual method of payment, although this is subject to negotiation, is by calendar monthly instalments, payable to us in advance by standing order. We then forward this to you by BACS payment after deduction of our fee and any other applicable deductions (See also under Income Tax).
RENT INCREASES
It is usual to negotiate a rent increase when a 12 month tenancy is renewed for a further year. In the first six months of an Assured Shorthold Tenancy, a Tenant has the right to ask for a Rent Assessment Committee to fix a different rent if they believe that the rent is not in keeping with market rents for the area. The Committee can fix a rent at a level they believe is a true reflection of the market.
SECURITY DEPOSIT
At the commencement of the Tenancy, the Tenant is required to lodge an amount usually equivalent to six weeks of the agreed rent, as security against any damage or loss at the property not reasonably considered to be due to fair wear and tear. Unless otherwise agreed, the deposit will be held by Green Locations as Stakeholder in an interest-bearing account, and at the end of the tenancy the deposit plus interest accruing to the amount of deposit being held for the tenancy, will be returned to the Tenant, less any agreed deductions.
With effect from 6 April 2007, in compliance with the Compulsory Tenancy Deposit Protection Scheme requirements introduced under the Housing Act 2004, Landlords and Agents are required to safeguard Tenants’ deposits paid in relation to an Assured Shorthold Tenancy (AST) either by sending the money to the administrator of the Custodial Scheme, or by joining one of the two available Insured Schemes.
The Scheme has two main purposes; to safeguard tenancy deposits to ensure Tenants will get back all or part of their deposit to which they are entitled, provided they have kept the property in good condition; and to facilitate the resolution of disputes arising in connection with such deposits by means of an Alternative Dispute Resolution Service (ADR).
Green Locations have joined the Insured Scheme administered by The Dispute Service, and all deposits held by us will be protected under this Scheme unless the tenancy is a non-AST and we are specifically requested otherwise. We make no additional charge to the Landlord or the Tenant for holding the deposit. If the Landlord wishes us to hold the deposit, where the tenancy is an AST, he will have to personally safeguard the deposit either by personally joining one of the appointed Insured Schemes (for which a membership charge is payable), or by sending the deposit monies to the administrator of the Custodial Scheme, where it will be held until the end of the tenancy. There is no charge to the Landlord for membership of the Custodial Scheme. The Landlord must notify the Tenant within 14 days of taking the deposit of the provisions he has made for securing the deposit. If the Landlord fails to protect the deposit, and to notify the Tenant accordingly, he will not be able to serve a Section 21 Notice to gain possession of his property, and will be ordered to pay the Tenant three times the amount of the deposit.
Further details of the legislation can be found at www.direct.gov.uk/tenancydeposit. In many cases the full replacement cost of articles found defective cannot be charged to the Tenant because of their previous history. The Landlord is responsible for ensuring equipment is in good working order as repairs or replacements of old equipment will be charged to him.
INVENTORY
Prior to the Tenant taking possession of the property an inventory of the condition of the property and it’s contents and their condition should be made, ideally by an independent Inventory Clerk.
IT IS IMPORTANT THAT THE PROPERTY IS THOROUGHLY CLEANED PRIOR TO THE TENANCY COMMENCING.
The Tenant is checked into the property against the Inventory by the Inventory Clerk and a copy of the Check In Report and the Inventory is sent to both the Tenant and Landlord for their information. At the end of the tenancy, the Inventory is checked again with the Tenant and any costs for damage or loss agreed with the Tenant will be deducted from the Tenant’s deposit. It must be expected that there will be a degree of “wear and tear” which is not covered by the deposit. Where Green Locations is managing the property we undertake these negotiations at no charge.
The cost of preparing an Inventory is usually the Landlord’s responsibility and varies according to the size of the property and its contents. In general the cost of checking in is also paid by the Landlord and the cost of checking out is paid for by the Tenant. Corporate Tenants usually employ their own Inventory Clerks who will accompany the Landlord’s Inventory Clerk at the beginning and the end of the tenancy – the Landlord will pay all their Inventory Clerk’s costs at the beginning and the end of the tenancy.
CONTENTS, FURNITURE & FURNISHINGS
A property that is in good condition with a high standard of furnishings tends to attract a better rent and, more importantly, will rent more quickly generally to a better type of Tenant. Generally, families prefer unfurnished property and professional sharers prefer part-furnished property. Demand for furnished / part-furnished property tends to be stronger at the 1 and 2 bed level.
Tenants seeking furnished property are often happy to settle for part-furnished property and it is recommended that Landlords whose property is likely to attract professional sharers or professional individuals present their property as part-furnished, not fully furnished. A property that can be presented as unfurnished or part-furnished will have greater appeal than one which cannot.
Unfurnished – describes a property that contains carpets, curtains and white goods (i.e. oven, fridge / freezer, washing machine, dishwasher etc.)
Part-furnished – describes a property that contains basic furniture such as beds, a sofa and table and chairs.
Fully furnished – describes a property that contains most items a Tenant will need to live in a property other than linen and towels.
SERVICES AND COUNCIL TAX
We will write to the utility companies (electricity, gas and water - but not telephone) and inform them of a change of occupier. We will do the same for Council Tax. We do not guarantee the services will be correctly transferred so recommend that you check with the companies shortly after a tenancy has commenced that the correct information has been recorded.
TELEPHONE
The Tenant becomes the subscriber and is responsible for the line rental and all accounts.
TV LICENCE
Television sets are not normally provided in rented accommodation. Please note that the Tenant is responsible for paying the licence fee in respect of the use of any television set in the property during the tenancy.
INSURANCE
You are strongly advised to ensure that building and contents insurance is sufficient and liability insurance covering injury to the Tenant is included. Insurance companies will void claims made against properties that have been let without their approval - see Lettings & The Law below. Some insurers may require an increased premium for let properties and may increase or withdraw cover if properties are vacant and unsupervised for more than 21 - 30 days (this varies with different insurers).
INCOME TAX
The income you receive from your home is unearned income and is subject to tax at the standard rate.
UK Residents: If you will still be resident in the UK during the period of the tenancy then you are responsible for paying the tax due on the letting income. We recommend you consult a tax adviser/accountant to ensure you understand the full tax implications for your particular circumstances. There are often changes in the tax law and so it is important to have someone who can keep you updated.
Overseas Residents: In accordance with the Finance Act 1995, agents are required to deduct tax at the basic rate from rental monies net of expenses prior to paying these monies to overseas Landlords. The payments must be made to the Inland Revenue quarterly and at the end of the tax year. If there have been excess payments then Landlords can, on submission of detailed paperwork, apply to the Inland Revenue for a rebate.
However, under this Act the Inland Revenue introduced a system of Self Assessment and all overseas Landlords may apply to the Inland Revenue for Exemption. If granted the agent is issued with an Exemption Approval Number, whereby they are allowed to pass the rental monies to the Landlord without deduction of tax.
We would strongly recommend that you apply for Self Assessment and we can provide you with the appropriate application form. Please note the Exemption Approval is not transferable between Agents and it will be necessary for a new application to be made the first time Green Locations lets your property. Should you not wish to apply, or if you are refused Exemption, and we are obliged to submit quarterly returns to the Inland Revenue, we will make a charge to cover our administration costs. We always recommend that the services of a Chartered Accountant are used to ensure all allowable outgoings can be offset against tax.
DEDUCTIBLE EXPENSES
Generally, expenses must be of a non-capital nature and incurred wholly and exclusively for the purposes of letting the property. This is a statutory definition and a practical interpretation is sometimes difficult. Common items of allowable expenditure are: -
- Letting agents’ fees.
- Tax advisors’ fees for preparing an annual letting account and agreeing liabilities with the Inland Revenue.
- Usual maintenance of the property including repairs, although not, generally speaking,repairs which amount to improvements.
- Water rates, Council Tax, ground rents, insurances, service charges and inventory costs.
- A 10% wear and tear allowance if the property is let furnished.
- Legal fees for drawing up a lease of less than a year.
- Interest payable on a loan to purchase, improve or make alterations to let a property.Personal Allowances and Rates of Tax
- All UK resident Landlords are entitled to personal tax allowances. In practice, these will often be used against other sources of income before letting income.
- Many non-resident Landlords are also entitled to personal allowances including Commonwealth citizens and citizens of the European Union.
- The net profit, after accounting for personal allowances, is taxed at an individual’s marginal rate of tax. Rental income does not qualify for the special 10% rate applied to most forms of investment income.
- A husband and wife should consider in whose name let property should be owned to ensure the most efficient use of personal allowances and the lower rate bands of tax.
SAFETY REGULATIONS - LANDLORD STATUTORY OBLIGATIONS
The responsibility for compliance with the following regulations or any re-enactment, is and remains the personal obligation of the Landlord. Failure to comply with safety legislation is a criminal offence and can lead to prosecution, fines or imprisonment or both.
The Furniture and Furnishings (Fire) (Safety) Regulations 1988
The Furniture and Furnishings (Fire) (Safety) (Amendment) Regulations 1993
All upholstered furniture, permanent or loose fittings, soft furnishings, beds, mattresses, pillows and cushions supplied to a property and forming part of a letting must comply with these Regulations. It is illegal to let a property with furniture which does not comply.
Carpets and curtains are not covered by the Regulations. Period and antique furniture manufactured before 1950 are exempt. New furniture manufactured since 1 March 1989 and sold by a retailer after 1 March 1990 was required to comply and carry labels to this effect. Where there are no labels, contact the manufacturer or retailer for confirmation. If in doubt the items should be replaced.
The Gas Safety (Installation and Use) Regulations 1998
Landlords are responsible for ensuring that appliances and pipe work in Tenanted premises are maintained in good order and in a safe condition so as to prevent risk or injury to any person.
The Regulations require that the appliances and pipe work are checked for safety by a CORGI qualified gas engineer prior to the commencement of a tenancy and every 12 months thereafter. A record of the safety check must be supplied to the Tenant and a copy kept by the Landlord and/or his Managing Agent for at least two years.
Where we are instructed to manage a property, we will accordingly arrange for a gas safety check to be conducted at the commencement of any Tenancy (unless a current Gas Safety Record is available) and every 12 months thereafter. All contractors charges will be payable by the Landlord. For properties not under our Management Service, we require a copy of the current and all subsequent Gas Safety Records. If required we will instruct a CORGI engineer to attend the property and deduct the contractor’s fee plus an administration charge from rental monies received.
The Electrical Equipment (Safety) Regulations 1994
Landlords must ensure that ALL electrical appliances and the electrical supply is ‘safe’ and will not cause ‘danger’. From 1st January 1997, all new electrical appliances must carry a ‘CE’ mark and instruction booklets or clear working instructions must be provided. Newly installed plugs and sockets must also comply with regulations.
Confirmation that inspections have been regularly undertaken could be requested, although no specific time-scale is given, nor is there any requirement for inspections to be made by members of specific bodies, other than the person is competent.
We recommend that an inspection is undertaken prior to the commencement of a tenancy and at regular intervals thereafter. We can arrange this for an administration fee plus the contractors charge. (The administration fee will not apply for properties under our Management Service).
Part P Building Regulations (Electrical Safety in Dwellings)
From the 1st of January 2005 any works, repairs or maintenance undertaken on domestic electrical installations in certain areas of a property must be carried out by a competent person registered with an organisation providing an approved selfcertification scheme. Wherever possible when instructing contractors on a Landlord’s behalf to carry out applicable electrical repairs and maintenance at a property, Green Locations will only instruct such competent approved contractors.
The Building Regulations 1991 Smoke Alarms
All properties built since June 1992 must be fitted with mains-operated interlinked smoke detectors / alarms on each floor. Whilst properties built before that date are not included under the statutory requirement, we strongly recommend that all properties to be let are fitted with smoke alarms and these are regularly serviced. We can arrange this for an administration fee plus the contractors charge. (The administration fee will not apply for properties under our Management Service).
CONSENTS
Before entering into any agreement to let your property you must check whether there are any restrictions to your doing so and whether consent needs to be obtained from:
Superior Landlord/Freeholder: If you hold the property on a Lease you must ensure that your Lease permits you to let the premises and that you are granted consent to do so. You must also ensure that the letting is for a period expiring prior to the termination of your own Lease.
Mortgage Provider: If the property is subject to a bank loan or mortgage, in most cases permission will be required from the lender before the property can be let.
Insurers: Most insurance policies require you to notify them if the property is to be let. Failure to do so may void the policy.
PROTECTING LANDLORDS’ AND TENANTS’ MONEY
As a minimum, ARLA member firms are required to:
Maintain specifically designated bank or building society accounts to receive and hold “client money” separate from their firm’s business or office accounts.
To reconcile such client accounts on a regular basis to ensure that balances match the ledgers or accounting records of the member firm and that individual money can be identified.
To have a suitably qualified accountant audit these client bank accounts and the member firms accounting records annually and a certified report must then be submitted to ARLA…
And all such money will be further protected because – ARLA’s Client Money Protection Bonding Scheme automatically covers the relevant money held in the client accounts of member firms against misappropriation of that firm.
HOUSES WITH MULTIPLE OCCUPANCY
The Housing Act 2004 changed the definition of a house in multiple occupations (HMO) and introduced mandatory licensing for certain types of HMO. The main change in definition included:
- A dwelling is an HMO if it is occupied by more than one household and amenities are shared.
- Converted buildings which do not comprise entirely of self contained flats and contain more than one household are HMOs.
- Houses converted to self contained flats, which do not comply with the 1991 Building Regulations, and where more than one third of the flats are occupied under short tenancies will be HMOs.
The Housing Act 2004 introduced mandatory licensing of those HMOs with three or more storeys and five or more persons comprising two or more households. Licensing came into effect on 6th April 2006.
It is the responsibility of the Landlord of an HMO to apply for a licence. The fee for the licence will be determined by the local Council and the local Council will grant the licence if the property is deemed suitable for occupation. It will also require the licence holder to:
- Produce a gas safety certificate each year
- keep electrical appliances and furniture (where provided) in a safe condition
- ensure that smoke alarms are installed and kept in proper working order
- supply the occupier with a written statement of the terms in which they occupy the property. More information can be obtained from the website www.communities.gov.uk by following the links to "housing" and then"private housing" and then "private rented" to find HMOs
ADVICE TO TENANTS
YOUR REQUIREMENTS
To be in the best position to assist you, we need to establish the following at the outset:
- The type and size of property that you require
- Whether you require a furnished, unfurnished or part-furnished property
- If a garden, lift or parking facilities are important
- The area in which you wish to live and the amenities (transport, schools etc) that you need close by
- The length of the tenancy you require (most tenancies are for at least 6 months)
- When you need the tenancy to begin
- The number of Tenants or occupants the tenancy will be for. This should include any children and nanny/au pair (occupants over the age of 18 may be required to sign the Tenancy Agreement)
- If you require permission to keep pets in the property
- Whether the Tenancy will be a company let (i.e. in the name of a UK registered company), or a private let in your own name
- Your personal circumstances regarding employment and any other properties which you may rent or own in the UK.
CHOOSING YOUR PROPERTY
It is important to note that unless specific requests are made and agreed between the Landlord and Tenant prior to the agreement of terms, a property is let “as seen”. This applies to decoration.
HOLDING FEE
Once an offer is accepted Subject To Contract by the Landlord, we request a holding fee equivalent to one weeks rent. At this stage we will cease to market the property whilst references are taken and the arrangements for the commencement of the Tenancy are made. This deposit will be refunded at the start of the tenancy (by means of deduction from the initial rental invoice) or in the event that the Landlord decides not to proceed. If an applicant changes their mind, or the tenancy cannot proceed because references are not forthcoming or prove unsatisfactory, some or all of the deposit will be retained to cover any reasonable costs incurred by the Landlord or Green Locations. These costs may include the following:
- Cost of preparing the tenancy agreement or pre tenancy documentation
- Costs of any referencing
- Cost of any cancellation fees charged by inventory clerks
- Costs of any cancellation fees by Inventory Clerks
- Costs of any repeat cleaning prior to the start of a future new tenancy
- Costs in lieu of rent lost to the Landlord by keeping the property empty and not offering it to other applicants
REFERENCES
Before a tenancy can be granted, we must take up references on each Tenant. This is normally undertaken via a credit search agency. In some instances, e.g. in the case of younger Tenants or where there is insufficient employment or UK financial history (e.g. of less than one year), it may be necessary to also provide a Guarantor, on whom references will also be taken. The cost of the credit search fee is included in the Administration Fee (see below).
GUARANTOR
A Guarantor is someone who is prepared to undertake responsibility for the full amount of the rent should the Tenants be unable to do so at any time during the Tenancy. He/she will be required to co-sign the Tenancy Agreement and allow references to be taken on them. It is important to note that where the Tenants are “sharers” who have joint and several responsibilities under the terms of the Tenancy Agreement (see Sharers below) the Guarantor cannot restrict his responsibility to a share of the rent, he/she is effectively required to undertake to stand for all of the Tenants and the full rental figure. Therefore in the case of sharers one Guarantor will suffice. It is essential that a Guarantor is aware of what is required of them. In order to be a Guarantor on a tenancy the Guarantor must:
- Be a homeowner in England/Wales/Scotland/ Northern Ireland
- Be in fulltime employment/show history of accounts (via an accountant with at least 6 months history with the Guarantor) or provide proof of income for the past 6 months
- Be prepared to co-sign the tenancy agreement with the other Tenants and be jointly and severally liable for the tenancy
THE TENANCY
The minimum term is six months but generally properties are rented on an annual basis. If required a release clause, or option to renew for a further term can be inserted into the contract, however, this is subject to negotiation. Once the tenancy has commenced you have security of tenure for the fixed period, provided you are not in breach of the terms of the Tenancy Agreement.
At the expiry of a fixed term tenancy the Landlord can take possession of his property (in the case of an Assured Shorthold Tenancy he is required to serve two months notice of his intention to do so) unless it is agreed between you to renew the tenancy. You are then under an obligation to leave the premises. We will keep you in touch with the Landlord’s intentions if we are also managing the property.
THE TENANCY AGREEMENT
The Tenancy Agreement must be signed by all Tenants and any Guarantor prior to occupation. The Agreement you will be signing will in most cases be a standard contract to which may be added clauses relating to any special requirements you may have, e.g. to keep a pet, which the Landlord may consent to. It is extremely important that you read your Tenancy Agreement, and should you have any questions relating to it, that you ask these prior to signing it. Once dated, the parties will be legally bound to the Tenancy. By returning the signed Tenancy Agreement to us we treat is as the Tenants authority for us to execute the Tenancy Agreement without further reference to the Tenant, unless we are advised to the contrary.
RENEWAL OF TENANCY AGREEMENT
Normally two month’s prior to the end of the existing Tenancy Agreement we will contact the Tenant and Landlord to establish if both parties wish to renew the tenancy. If both parties are in agreement the terms of renewal are agreed and the paperwork is drawn up. Green Locations does not charge a fee for the renewal of the Agreement.
SHARERS
Under the terms of the Tenancy Agreement individuals renting a property together (“sharers”) have “joint and several” liability which gives them all equal responsibility for adhering to the terms and conditions contained in the Tenancy Agreement and makes each and every one of them responsible for the full amount of the rent. This means that should one of the sharers default in their rental payment, the other Tenants are liable and responsible for the outstanding balance.
Equally, in the case of damage to the property, if damage is caused by one Tenant, the other Tenants are deemed equally responsible when deductions are made from the security deposit. Any disputes between sharing Tenants relating to the security deposit are the sole responsibility of the Tenants to resolve and the Landlord or his agent cannot act as mediators in such disputes. This also applies to the termination of a Tenancy, one sharer wishing to end a tenancy (provided there is provision to do so within the Tenancy Agreement) is deemed to be doing so on behalf of all the Tenants.
STAMP DUTY LAND TAX
With effect from 1 December 2003, Stamp Duty Land Tax, which was introduced under the Finance Act 2003, may be applied to some residential lettings. The liability for payment, where applicable, is the sole responsibility of the Tenant. Further information may be obtained from the Inland Revenue enquiry line on 0845 6030135 or from their website at www.inlandrevenue.gov.uk/so.
THE RENT
Unless otherwise stated, the rent is exclusive of telephone, water, gas, electricity and council tax. The normal method of payment is by calendar monthly instalments in advance by standing order, subject to negotiation. The first payment is due on or before the commencement date of the tenancy in the form of cleared funds i.e. Bankers Draft or Transfer. Personal cheques may be accepted in special circumstances, but must be received 7 working days before the commencement date to allow time for clearance.
The rent is calculated on a calendar month basis; i.e. weekly rent multiplied by 52, divided by 12 (see Conversion Table below). Tenants should note that rent will only be accepted from those persons named on the Tenancy Agreement and only one payment per property is acceptable. Tenants sharing a property should set up a joint bank account from which the rent can be paid by standing order. Rents are due on the date shown on the agreement and rent demands and reminders are not sent. Please note that interest will be charged on late payment of rent.
Weekly to Monthly Rentals
Monthly rental payments are calculated as follows:
(Weekly Rent x 52) ÷ 12
e.g.: Weekly rent of £200 per week = £866.67 per calendar month
OVERSEAS LANDLORDS TAX LIABILITY
Please note that if the Landlord lives abroad and you pay your rent directly into his account you should satisfy yourself that you are not liable to any tax that may be levied against the rental income. Further information can be obtained from The Inland Revenue Centre for Non Residents’ Helpline on 0151 472 6208.
SECURITY DEPOSIT
See above
ADMINISTRATION FEE
We charge a fee to cover the cost of the credit reference search and the preparation of the Tenancy Agreement (and any subsequent renewal documentation). This is a minimum fee of £100 + VAT (£117.00) or £50 + VAT (£58.75) per person in the event of three or more sharers.
SERVICES AND COUNCIL TAX
The gas, electricity and water services are transferred into the Tenant’s name at the commencement of the tenancy, and the council tax authority is advised of your occupation. Some utility providers may require a deposit if a Tenant has not previously had a supply in the UK.
TELEPHONE
You are required to transfer the telephone account into your name at the commencement of the tenancy. In the event that the line has been disconnected, it is your responsibility to arrange and pay for reconnection. To do so you should contact British Telecom on Freephone 150.
INVENTORY
Prior to taking possession of the property an inventory of the condition of the property and its contents and their condition will be made (usually by an independent Inventory Clerk). At the start of your tenancy, immediately prior to your taking occupation, the Inventory Clerk will go through the inventory room by room with you and you will be asked to sign a declaration to confirm the contents and their condition. You will then be given the keys and allowed occupation of the property and a copy of the Inventory and Check In Report will be forwarded to you for safe keeping. At the end of the tenancy the same process is repeated and any damage or loss will be noted and assessed for appropriate deduction from the Security Deposit.
PAYMENT OF INVENTORY
The Landlord usually bears the cost of the making of the inventory and the checking in, the Tenant pays for the checking out. This may vary with corporate tenancies. This cost varies depending on the size of the property and the extent of furniture and furnishings included.
PROFESSIONAL CLEANING
Most properties will be professionally cleaned prior to a Tenant taking occupation. The standard of cleanliness is indicated on the Inventory Check –In report. If a property is professionally cleaned at the beginning of a tenancy it must be professionally cleaned at the Tenant’s cost at the end of the tenancy – professional cleaning includes: steam cleaning all carpeted areas; cleaning windows inside and out; cleaning inside cupboards and surfaces; descaling bathrooms and wcs; defrosting freezers and fridges. Professional cleaning is done to a much higher standard than a domestic clean.
ACCESS
The Landlord and/or his agent will require access to the property from time to time. There will be a clause to this effect in your Tenancy Agreement. If we are managing the property we will usually require access every 4 months to make a report on the physical state of the building and to make recommendations on decorating, repairs etc. Gardeners and tradesmen may also require access from time to time. However the infringement on your privacy will always be kept to the minimum possible.
BEHAVIOUR
During the tenancy you will be expected to act in a `Tenant-like’ manner. This means not abusing the property or infringing upon the peaceful enjoyment of the neighbourhood. Again this is referred to in the Tenancy Agreement. Failure to comply with the Tenancy Agreement may result in legal action being taken.
GUESTS STAYING
Whilst it is expected that Tenants may wish to have occasional guests to stay, please be aware that this could constitute a breach of your Tenancy Agreement. Long term or multiple guests may result in immediate termination of the Lease.
MAINTENANCE
If you have any problems during the tenancy and we are the Managing Agents we will be able to respond quickly to your needs. We will in any case be happy to provide information on useful services in the area. In all instances we will use our best endeavours to ensure that repairs are carried out as soon as possible and with the minimum of inconvenience to you.
Any routine maintenance is the responsibility of the Landlord, for example making good water damage from leaks beyond your control, or maintenance of appliances (see below). If we manage the property we will appoint reputable contractors who are known to us to rectify such problems as quickly as possible. However delays may occur should new parts have to be ordered or if specific manufacturers over whom we have no control have to be called out.
Similarly, in the case of new properties that are under guarantee by the Developer, the timescale and appointment of contractors is often not under the Landlord or Agent’s control.
APPLIANCE REPAIRS
Unless otherwise stated in the Tenancy Agreement, all appliances noted on the inventory will be maintained at the cost of the Landlord. Any routine maintenance is the responsibility of the Landlord, for example if a new part is required due to age, or making good water damage from leaks beyond your control. However if a serviceman reports that damage was caused by improper use rather than ‘wear and tear’, the cost of repair/replacement will be the Tenant’s responsibility.
All maintenance problems should be reported to the Property Manager (or Landlord if we are not Managing the property) immediately. In some cases there may be a simple solution which would rectify the problem instantly with no cost to yourself, for example:
- Vacuum Cleaner – checking bag and hose for blockages
- Boiler / Heating – check timers and thermostats are correctly set
- Radiators – regularly bleed to remove air blockages
- Washing Machine – check that filters are cleaned regularly
- Dishwasher – ensure rinse aid and salt are kept topped up
- Oven/Cooker – check that the timer or automatic function is not set
YOUR RESPONSIBILITIES
During your Tenancy you are responsible for the upkeep and maintenance of the property. This includes:
- Replacing glass which has been broken by your action or negligence
- Changing fuses, light bulbs
- Repairing any damage to appliances caused by misuse
- Keeping drains and guttering free of obstruction
- Keeping the property sufficiently ventilated to ensure condensation does not build up in problem areas
- Forwarding any of the Landlord’s mail to his Agent
- Maintaining the garden in accordance with the terms of the Tenancy Agreement
- Ensuring that windows and doors are always securely locked when the property is unattended and any burglar alarm is set
- Taking the necessary steps to prevent freezing of the water and heating systems, particularly if you are absent from the property during the winter months
- Paying of any bills incurred from calling out emergency companies not approved by the Landlord or his Agent?
- Reporting to the Landlord or his managing Agent any problems that may arise so remedial action can be taken quickly to minimise the damage
- In leasehold properties (mainly flats and maisonettes) the Tenant is bound to the rules and regulations of the Head Lease or any Resident Association.
Please note that whilst a degree of ‘wear and tear’ (deterioration through normal usage) is to be expected, any damage to the property or the Landlord’s belongings will be the Tenant’s liability. For the avoidance of doubt ‘wear and tear’ does not embrace dirt or dust that was not in a property prior to the tenancy.
TV LICENCE
Television sets are not normally provided in rented accommodation. The Tenant is responsible for paying the licence fee in respect of the use of any television set in the property during the tenancy.
PETS
Animals are only allowed with the express permission of the Landlord. However, this may not always be granted or if permission is granted, an additional deposit as security against any related damage to the Property is usually sought.
LINEN
Even in furnished properties, linen is not provided in rented accommodation. You will need to supply your own bed linen and towels.
INSURANCE
During the course of the tenancy the Landlord’s contents only are insured for forcible entry, theft and water/fire damage caused through a system fault or failure. You must therefore insure your own belongings.
SUBSTITUTION OF TENANT
It is possible to make a substitution of one Tenant for another during a tenancy; however it is subject to approval from the Landlord. If approved, we will prepare additional paperwork for the substitution and carry out a full credit check on the new Tenant. The fees for our administration costs for substitutions are £100 plus vat (£117.50) per person. There will be no new inventory check in and the new Tenant must acknowledge and take on the full responsibility of the current condition of the property and any existing damage which may have occurred. The new Tenant pays the outgoing Tenant their share of the deposit (no monies are distributed by Green Locations) and should keep back a proportion of monies in case of any existing damage in the house which will need to be paid for at the end of the tenancy.
Should you wish to discuss any of the above, or have any further queries, please do not hesitate to contact us.
Should you wish to discuss any of the above, or have any further queries, please do not hesitate to contact us.