Referencing up to two tenants £300 – Credit checks, obtaining references from current and previous landlords & employers in order to establish affordability. Checking immigration and visa status, in order to confirm tenant’s right to rent.
Referencing multiple tenants up to five tenants £500 – same as above, processing application and referencing.
Guarantor Fee Up to three Guarantors £250 – Credit checks, obtaining references to establish affordability, immigration status, preparing deeds of guarantee and terms & conditions of deeds.
Please note (NO VAT ON ALL FEES)
TERMS & CONDITIONS
This Agreement is made between the Landlord of the Property (as named at the end of this agreement) and GOOD NEIGHBOURS ESTATES who agrees to act as agent for the Landlord and is hereinafter referred to as “The Agent”. The purpose of this document is to set out clearly and concisely the extent of the letting and management service offered and the scale of fees charged.
STANDARD MANAGEMENT SERVICE
We provide a property management service to owners (and superior landlords) wishing to let out their property. The standard fee for the management is taken as a percentage of the gross rents due for the period of the tenancy and a set-up fee will normally be levied at the outset for taking references and arranging the tenancy.
The Standard Management Service includes:
1) Advising as to the likely rental income.
2) Advertising and generally marketing the Property.
3) 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.
4) Preparing the Tenancy Agreement necessary for the Landlord to gain protection of the relevant Rent and Housing Act, and renewing the Agreement where necessary, at the end of the Term.
Liaising with a Landlord’s mortgagees where necessary with regard to references and Tenancy Agreement.
5) Taking a deposit from the tenant to be held by the Landlord. It is the Landlord’s responsibility to ensure the deposit is placed in a Government Authorised Tenancy Deposit Scheme. One such scheme is Tenancy Deposit Solutions Ltd (TDSL). Website: www.mydeposits.co.uk
6) Collecting the rent monthly and paying over to our Landlord monthly (normally sent within 15 days of collection) less any fees or expenses due for the period. Payments will be made by direct bank transfer together with a detailed rent statement. A rent guarantee scheme can be arranged for the first 6 months of the tenancy.
7) Arranging with services 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.
8) Co-ordination of repair or maintenance including arranging for tradesmen to attend the Property and obtaining estimates where necessary, supervising works and settling accounts from rents received.
9) Collecting and forwarding Landlord’s mail.
Additional items and other expenses will be charged according to the scale of fees defined below.
Although the aim is to take every care in managing the property, Good Neighbours Estates cannot accept responsibility for non-payment of rent (unless the Landlord has a agreed a rent guarantee scheme, which in this case the rent is guaranteed for the 1st 6 months), damage or other default by tenants, or any associated legal costs incurred in their collection.
An insurance policy is recommended for this eventuality. We would advise you to take out ‘Homelet Specialist Landlord’s Insurance Solutions.’ Please ask us for more details.
Good Neighbours Estates Limited, Registered in England & Wales NO4511465, Registered office: 28 Plumstead High Street, London SE18 1SL
OUR CHARGES AND SERVICES
PLEASE NOTE WE CURRENTLY DO NOT CHARGE VAT
The equivalent of 4 weeks rent
Letting and Standard Management
The equivalent of 3 weeks rent as the letting Fee and 8% of the monthly gross rental income
Tenancy Only: set-up Fee/Renewal
Short Lets (less than 6 months) 15% of the gross rental income for the length of the tenancy.
To check Landlord’s personal inventory: £25.00 + VAT (unfurnished property) £45.00 (furnished)
Standard Inventory provided by Agent: £100.00 + VAT
Gas Safety Inspection
Cost of Inspection
EPC (Energy Performance Certificate)
Cost of EPC
Electrical Safety Test
Cost of Test
Fire Safety Inspection
Cost of Inspection
Redirection of mail overseas:-
Cost of postage
Duplication &Testing of extra Keys:-
Cost of keys
Non-Resident Landlord Tax: (if applicable)
20% of monthly rental
The Landlord confirms that he/she is the sole or joint owner of the Property and that he/she has the right to rent out the Property under the terms of the mortgage or head lease. Where necessary, the Landlord confirms that permission to let has been granted by the mortgagee. The Landlord authorises the Agent to carry out the various duties of property management as detailed previously. The Landlord also agrees that Good Neighbours Estates may take and hold deposits on behalf of the Landlord. It is declared that the Agent may earn and retain commissions on insurance policies issued.
The Landlord agrees to indemnify Good Neighbours Estates against any costs, expenses or liabilities incurred or imposed on Good Neighbours Estates provided that they were incurred on behalf of the Landlord in pursuit of Good Neighbours Estate’s normal duties. To assist Good Neighbours Estate in carrying out their duties effectively, the Landlord agrees to respond promptly with instructions where necessary to any correspondence or requests from the Agent.
The Landlord warrants that the Property is made available in good and rentable condition and that the Property, beds, sofas and all other soft furnishings conform to the current fire safety regulations. The Landlord agrees to make the Agent aware of any ongoing maintenance problems. Subject to a retained maximum expenditure limit (UK landlords: £100, overseas landlord: £200) on any single item or repair, and any other requirements or limits specified by the Landlord, Agent will administer any miscellaneous maintenance work that need to be carried out on the Property (although the administration of major works or refurbishment will incur an additional charge – see Scale of Fees on page 3).
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 he limits specified. The agent endeavours to select competent tradesmen at a reasonable price but is unable to personally guarantee the standard of workmanship, although the Landlord retains the right to pursue any claim 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 cause these to be carried out on the Landlord’s behalf, expenses and administer the necessary inspection and maintenance records.
The Agent would recommend all Landlords take out a comprehensive Homeserve or British Gas Homecare agreement to cover any heating, plumbing and yearly gas safety inspections. This will give both Landlords and tenants peace of mind. As a risk assessment, we would like to draw to your attention that it costs a lot of money to carry out repairs, however, in the long run insurance usually works out cheaper.
Therefore, we would strongly advise you to contact British Gas or Homeserve for more information.
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 received rent gross. In this situation, the Agent also requests that the Landlord appoints an accountant or reserves to the Agent the right to employ a suitably qualified 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 cases, landlord’s tax liability is minimal when all allowable costs are deducted.
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.
The Agent will take meter readings whenever possible at each change of occupation in the Property and inform the service companies (electricity, gas and water) 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 it is not possible for the Agent to do this on the tenant’s or Landlord’s behalf. Regarding mail, Landlord’s 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.
It is essential that Landlord’s provide the agent with a check-in inventory which the agent will have to verify at a cost of £25.00 for an unfurnished property and £45.00 for a furnished property. If a Landlord does not provide us with a check-in inventory the agent will provide a standard inventory for the cost £100.00. The standard inventory will include all removable items in the Property (expect those of negligible value) plus carpets, paintwork, wall coverings, curtains, mirrors, sanitary ware and other articles that, in the opinion of the Agent, need regular checking. Landlords should not leave any articles of exceptional value in the Property without prior arrangement with the Agent. The standard inventory service does not include a full schedule of (condition, colour & decoration of ceilings, walls, doors & door fittings etc.) or photography: this can be prepared at the Landlord’s request. We strongly recommend all Landlords have an inventory, landlords are free to supply us with their own inventory (an insurance policy is recommended to protect furniture and fixtures in the property)
The Standard Management Service includes the preparation of a tenancy agreement in the Agent’s standards 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 enter into further work or correspondence, a fee for this extra work may be requested. It is agreed that the Agent may sign the tenancy agreement (s) on behalf of the Landlord.
Under the Standard Management Service, the Agent will normally carry out inspections whenever necessary. 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 general condition of the Property.
Following the departure of 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.
HOLDING OF FEES & DEPOSITS:
A holding fee is generally taken from a tenant applying to rent a property. The purpose of this fee is to verify the tenant’s serious intent to proceed with the application. The holding fee does not protect the Landlord against loss of rent due to the tenant 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 a larger security fee or deposit to be carried to protect against loss of rents, or insurance undertaken.
Upon signing the tenancy agreement, the Agent takes a dilapidations deposit from the tenant(s) in addition to any rents due. The purpose of the dilapidations deposit is to protect the Landlord against loss of rent or damage to the Property during the tenancy itself. These deposits are transferred to the Landlord who will have to (by law) secure all tenants deposits in a Government Authorised Tenancy Deposit Scheme. Upon registration of the deposit it is mandatory that the Landlord provides the tenant with a copy of the certificate.
One such scheme is Tenancy Deposit Solutions Ltd (TDSL). Their details are:
Tel: 0871 7030552
3rd Floor, Kingfisher House
The agreement may be terminated by either party by way of two months’ 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 the termination of this agreement. Where cancellation of this agreement is unavoidable due to circumstances beyond the control, of either party, the Minimum Fee
will not apply and any pre-payments will be returned to the person entitled to them, less any expenses reasonably incurred to the date of cancellation.
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 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. However, if tenant refuses to leave after termination of tenancy, possession can only be obtain through a court order.
It is the Landlord’s responsibility to inform the agent and the tenant if the property is undergoing a possession order.
SOLE LETTING RIGHTS:
It is agreed that only the Agent may let the Property.
WARNING: You should read and understand these obligations before signing overleaf.
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 safety of furniture and soft furnishings provided. The following regulations apply:
- Furniture and Furnishings (Fire Safety) Regulations 1988
- General Product Safety Regulations 1994
- Gas Safety (Installation and Use) Regulations 1998
- Gas Cooking Appliances (Safety) Regulations 1989
- Electrical Equipment (Safety) Regulations 1994
- Plugs and Sockets (Safety) Regulations 1994
The Landlord confirms that he/she is aware of these obligations and that Good Neighbours Estates has provided sufficient information (via explanatory leaflets available on request) 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 the above Regulations. Good Neighbours Estates shall ensure that all relevant equipment is checked at the beginning of the tenancy or during the tenancy as required. The Landlord agrees to indemnify Good Neighbours Estates against any reasonable expenses or penalties that may be suffered as a result of non-compliance of the Property to fire and appliance safety standards.
It is agreed that any instructions to the Agent from the Landlord regarding termination, proceedings, major repairs, payment, 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 the rate of 1% of the sale price. Currently Vat is not applicable
VALUE ADDED TAX:
Currently no VAT is applicable. However, this is subject to change if applicable.
The Landlord shall be responsible for the Property being adequately insured and that the insurance policy covers the situation where the Property is let. The Agent would normally be responsible for the administration of any claims arising during the period of management where the property is being managed (i.e. this only applies to properties under the full “Standard Management Service”) and subject to an additional charge for major works (see “Maintenance”).
The Landlord undertakes to reimburse the Agent for any claims arising from over payment which may be made by the local authority in respect of housing benefit, or other benefit scheme, paid to or on behalf of the tenant(s) as rent. This undertaking shall remain in force during the currency of the tenancy and up to six years thereafter, whether or not the Agent continues to be engaged to let or manage the Property under this Agreement.
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 will be advised accordingly. A solicitor would then be appointed and instructed by the Landlord (except 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.
ANTI –MONEY LAUNDERING REGULATIONS
Good Neighbours Estates is subject to the money laundering regulations 2007. Hence we will ask you to provide suitable identification.
LETTING ONLY SERVICE /LETTING AND RENT COLLECTION SERVICE:
Where the Landlord does not wish the Agent to undertake full management, the Agent can provide a Letting Service.
The Letting Service includes only parts 1 to 5 of the Standard Management Service as listed on page 1.
The fee for the Letting Service is 4 weeks rent. (No VA T) The fees are payable at the commencement of the Tenancy and will be deducted from monies received by the Agent on the Landlord’s behalf. If the tenant leaves prior to the end of the term of the Tenancy, the Landlord shall not be entitled to reimbursement of any fees paid.
Where the tenancy is renewed or extended to the same tenant (or any person associated with the tenant) originally introduced the Agent, a renewal fee of £100.00 (NO VAT) shall be payable on the renewal date. This only applies to the first 2 renewals; subsequent renewals for the same tenant will be Free. The Agent shall prepare the tenancy agreement, if required, for the new or extended tenancy.
ACCEPTANCE & VARIATION:
The terms & conditions of this Agreement may be varied by the Agent at any times, but only by prior written notification.
*I/we confirm that we have read the attached Agreement and wish the Agent to undertake the letting, rent collection and management. I/we also confirm that we are the sole/joint owners of the Property and that our mortgage provider is aware we have/are about to let the Property known as:
Our goal is to provide excellent service to our customers but we do recognise that things do go wrong occasionally. We take all complaints we receive seriously and aim to resolve all our customers’ problems promptly. To ensure that we provide the kind of service you expect we welcome your feedback. We will record and analyse your comments to make sure we continually improve the service we offer.
What will happen if you complain?
We will acknowledge your complaint within 5 working days of receipt if we are able to investigate and finalise your complaint within this period, we will provide you with our final response together with this acknowledgement.
Where we are unable to finalise your complaint within 5 working days we will provide you with a final response within 4 weeks of receiving the complaint. In the event that we are unable to provide you with our final response we will provide you with a holding response that will explain why we are not in a position to resolve the complaint and when we will next contact you.
If after 8 weeks we are unable to provide you with our final response we will provide you with a holding response that will explain why we are not yet in a position to resolve the complaint and when we will be able to provide you with our final response. At this stage if you are dissatisfied with the delay, and you are an eligible complainant, you may refer the complaint to the Ombudsman and we will provide you with the The Property Ombudsman service leaflet that will provide you with details on how to refer a complaint to them.
Where we provide you with our final response and you are not satisfied with this you may, if you are an eligible complainant, refer this to the The Property Ombudsman service. The Ombudsman service leaflet will be attached to our final response.
An eligible complainant refers to a private policyholder, a business with a group annual turnover of less than £1 million, a charity with an annual income of less than £1 million or a trustee of a trust with a net asset value of less than £1 million. The Ombudsman service only considers complaints from eligible complainants.
Most customer complaints can be resolved quickly but occasionally more detailed enquiries and investigations are needed and in most instances we will provide you with an acknowledgement and final response in a shorter time frame than that specified above, which are the maximum time frames in which we will respond.
The Property Ombudsman
Milford House 43-55 Milford Street, Salisbury, Wiltshire SP1 2BP
Tel: 01722333306 Fax: 01722332296