Tenant's Fees and Costs
From 1st June 2019, agents are no longer allowed to charge adminstration fees to any private tenants. We have since changed our tenants fee structure to bring it in line with the new legislations. These are now our updated policies regarding all tenant's fees and costs:
- To reserve any property after viewing we will require a holding deposit of 1 weeks rent per property.
- You will be required to leave a deposit of up to 5 weeks rent which will be registered at the Tenancy deposit scheme.
- If you wish to make any changes to the tenancy an administration charge of £50 is payable.
- Charges of two weeks rent are payable to negotiate an early termination of your tenancy with the Landlord.
- We do not cut keys for tenants.
- Late rent payments, which are more than 14 days overdue, incur an interest charge of 3% over the bank of england base rate.
Landlords Fees and Costs
Letting a property is a serious business, whether you are an experienced investor landlord or a private individual letting your property for the first time.
Letting your property demands careful planning and you need a professional agent that you can trust, one who will look after interests and at the same time make being a landlord as stress free as possible. At Paul & Co. we never forget that the landlord is our client and we use our knowledge and expertise to ensure that our service meets your needs.
The first stage towards putting your property up for let is usually to meet with us at the property for a market appraisal during this meeting we can discuss which level of service is best suited to your needs. Properties vary, as do the needs of each landlord, so we will be able to advise you the best course of action to maximise the rental and minimise the time taken to achieve it.
We offer three different levels of service, tailored to suit the individual needs of our clients, brief details of which are:
Letting Only Service: 10%
Advertise and promote the property until a suitable tenant has been found.
Accompany all prospective tenants on viewings
Obtain a full, comprehensive and independent reference report, including previous landlord references, employment history and credit check.
Prepare the tenancy agreement.
Collect the first months rent in advance and a security deposit of not less than six weeks (four weeks for unfurnished properties).
If the tenancy is an AST then we are members of The Deposit Protection Service
Arrange for an independent Inventory Clerk to prepare an itemised inventory of contents and report on condition.
Take meter readings and arrange for utilities (except telecom and satellite) to be transferred into your tenants name.
Letting and Rent Collection Service: 10%
In addition to the above, this service also includes:
Collection of the monthly rent and paying it into your nominated account. We say it takes approximately 10 days for the monies to be credited to your account but in most cases it is much sooner.
Submitting accounts to your accountant if required and dealing with HM Customs & Excise in regards to your tax payments.
If the tenancy is a Non AST then we can hold the security deposit as stakeholder.
30% handling charge applicable if we are instructed to carryout or supervise any works on the property.
3 Star Management Service: POA
In addition to the previous services this covers all the day to day issues plus the maintenance of the property. This service is ideal for landlords who are out of the country. We will be the first point of contact for the tenant
We will attend the property on a quarterly basis and report to you with our findings.
At the end of the tenancy we shall Check the tenant out and arrange for the return of the deposit, subject to any deductions for damages or cleaning.
* Please note that the 3 Star management service is no longer available
The Legal Position
The Housing Act 1988 (as amended by the Housing Act 1996 and the new Housing Act 2004)
The new acts have brought fundamental changes to the law governing the letting of residential property to individuals. Many of the changes have made the market more attractive to Landlords by making it easier to let at market rent and recover possession when necessary. The new Act specifies the types of tenancy and whilst there are several types, it is likely your property will be an Assured Shorthold Tenancy (AST), a Common Law Tenancy or a Company Let.
Listed below is a very brief guide to some of the regulations you as a landlord will be responsible for – this should not be taken as a detailed interpretation of the complete regulations.
In April 2007 the laws relating to the holding of deposits changed, which means all properties let under an AST have to have the deposits protected. Essentially there are two types of protection. If you would like access to the deposit, then it must be insured. An insurance policy can be bought from one of the Governments recognised insurers. The second option does not give you access to the deposit but it is lodged in an interest bearing account at one of the Governments protection agencies. We are members of the Deposit Protection Service.
Gas Safety (Installation and Use) Regulations 1998
This covers all gas appliances, flues, meters and associated pipe work. The property has to be inspected on an annual basis by a qualified Corgi registered engineer who will issue you with a certificate.
The Electrical Equipment (Safety) Regulations 1994 & Part B of Building Regulations January 2005
These regulations apply to all persons, who in the course of business, let accommodation which contains electrical equipment. Trading Standards are concerned that a Landlord must be able to demonstrate that electrical appliances are safe before a property is let. While there is no legal requirement to provide an Electrical Safety Report we strongly recommend that you do, as without one it would be very hard to prove your innocence should one of your tenants injure themselves on any equipment supplied by you.
Furniture and Furnishings (Fire) (Safety) Regulations 1988 Amendment Regulations 1989 & 1993
This act covers all upholstery and upholstered furniture supplied by the landlord in a rented property and includes beds, sofas, chairs, pillows, headboards, mattresses, beanbags etc.
Furniture manufactured between 1950 and 1990 can not be supplied to a tenant unless it has been professionally re-upholstered with conforming materials – fire retardant spray is not acceptable for example.
N.B. Landlords should note that the maximum penalty for non compliance with these regulations is a fine of £5,000 or 6 months imprisonment.
Energy Performance Certificates (E.P.C.’s)
With effect from 1st October 2008, all rental properties with a new or renewed tenancy in England and Wales will be required to have an E.P.C.
An E.P.C. look’s similar to the energy label found on most domestic appliances and gives prospective tenants an idea of the energy efficiency of your property. Rated on a scale of A to G (where A being the most efficient). Current running costs for heating, hot water and lighting will also be shown on the certificate, together with a list of recommended energy saving improvements.
You as the landlord will have a legal obligation to obtain an E.P.C. prior to marketing and once you obtained one it will be valid for 5 years.
Procedures for handling Client Money
Paul Estate Agents will hold all client money in their dedicated client account, which is currently held with Wembley High Road Barclays Bank.
We are registered members of the Property Redress Scheme and Client Money Protect (CMP) Scheme.