| Landlords
brochure and terms and conditions |
| At Home Base Property Rentals our aim is to get the best possible return
in rental income for your property and the best possible tenants.
We provide a personalised service to suit our Landlord either on a managed basis or purely an introduction to tenants basis. If you are looking to let any style or size of property we can help you. Anything from a studio flat up to a large detached house. We can give advice on making your property very attractive to prospective tenants. Professional, Corporate or Executive tenants can be very particular and expect a high standard of property. We provide peace of mind for all of our landlords by providing a “Rent Guarantee Scheme” that will pay the rent for up to three months or until the end of the current agreement if shorter, payments being made if the tenant is more than one month in arrears. We also offer the option of a separate “Legal Insurance” that will pay the legal fees in the event of the need to regain possession of your property. We offer an optional Rent Guarantee scheme. We like our tenants to fit the following criteria for your investment
property: To help maintain these standards we use Equifax Credit rating agency for our comprehensive referencing services. They run a credit check on each tenant searching details of their last three years addresses while checking employment and previous landlord details. However, to keep your options open we do not exclude people just because they are on Housing Benefit or Social Security. If references through Equifax are acceptable, then we will accept them. Often this is with the additional protection of a guarantor, which offers our landlords all round protection. Some of our best and longest standing tenants are on benefits. Please note that as a landlord it would infringe upon the individual rights if you were to exclude housing benefit tenants specifically. HEALTH WARNING!!!!!! It is inevitable that tenants will not treat
your property exactly as they would if it were their own. Also, some
people’s standards of cleanliness and care for the property and
its contents will be inferior to your own expectations. You must expect
to have to clean and sometimes redecorate after tenants have vacated.
However, the cost of some or all of this is usually covered by the tenants
deposit. |
The Landlords Investment
Guide |
(Terms & Conditions) |
| Initial Instruction To Let At our initial consultation and viewing of the property we will provide you with our professional advice and, following your completing of our “Authority To Let” the property, we will immediately start marketing. We ask that you initially let us have the property on a sole agency basis as we find multi-agency properties are inconvenient, liaison with other agents is often hazardous or non-existent. We will ask you to provide two sets of labelled keys to enable us to carry out efficient marketing. Access for viewing may be made by prior arrangement or by use of a key. Flexibility of viewing times is essential in order to allow us to market your property efficiently. All prospective tenants will be accompanied to the property for viewing. Compiling The Inventory A full Inventory and Condition Statement of all items in the property should be compiled and gas and electric meter readings should be taken at this time. If carpets have recently been shampooed or walls have recently been repainted, please add this to the Statement. At the time a new tenancy commences, the tenant will sign one copy of the Inventory & Condition Statement prior to the collection of keys, and will then have the opportunity to complete, and amend if necessary, a second copy, which must be returned within 7 days of the start of the tenancy agreement. Alternatively, we can prepare an inventory for you at our standard charge. Advertising The Property The property will be promoted as and when necessary by advertising through the local press our mailing list and the Internet. We also have a constant stream of enquiries from prospective tenants coming into the office and via our website links. Finding a Tenant This depends upon local market conditions and the quality and appeal of the property itself. In our experience this can vary from a few days to a few weeks. Prospective Tenants We will make comprehensive enquiries to establish the suitability of a prospective tenant. This includes taking up references Once complete the Tenancy Agreement will be compiled, completed and endorsed on your behalf. When necessary we will modify or make provisions for special clauses. Once the tenancy agreement has been completed we will forward you a copy of the Tenancy agreement and contact both the council and water companies, advising them of the change of occupant. It will be the responsibility of the tenants to advise all other services i.e. gas, electricity and telephone etc. The landlord will be responsible and does not hold the agent liable for any unpaid bills left by the tenant. However, it is not usual for the utility companies to hold landlords responsible for such outstanding bills. The tenancy agreement that we use is based on the Association of Residential Letting Agents (ARLA) format and every attempt has been made to make the language easy to understand. We also consider that it should be adequate to meet the requirements of laws relating to fair contracts and any European directives on human rights. Please note that we are not members of ARLA at this time. Collecting of Rents At the signing and exchange of contracts (The Assured Shorthold Tenancy Agreement) the tenant/s must pay either one calendar months rent or the balance of the rent to the end of the month plus full months rent as a deposit. We then collect the rent from the first (1st) of each calendar month. Please note that all tenants agreements are drawn up on a Joint and Several basis. This means that they are all fully responsible and liable fully for any arrears or debts arising, this includes all guarantors who read and sign the agreements. For each property two agreements are prepared, an original and a counterpart, the latter being held by Home Base. We will arrange for any stamp duty to be paid on your behalf when necessary. Home Base holds the deposit as a stakeholder and it does not belong to the landlord. It remains the property of the tenants and they are entitled to any interest that is earned. We place these funds in a separate Tenants Deposit Holding non-interest bearing account. The funds will only be released back to the tenant at the end of their tenancy, or deductions made from it, with the agreement of both parties. In the case of introduction only cases we accept the deposit as agents for the Landlord and then pass the deposit onto you. However, you should note that it is likely that next year that all deposits will have to be held by a third party as stakeholder. If the tenant falls into arrears we will carry out a procedure in order to attempt to obtain the unpaid rental. If this is not successful and the tenant falls into arrears of more than one calendar month and you have the optional Rent Guarantee with payments up to date, we will fund that months rent outstanding, usually within 10 working days of the arrears arising. We will continue to chase the tenant for payment. The Rent Guarantee will pay up to three months rent in this way. Please note that if the tenant is funding some or all of the rent via Housing Benefit then there may be some delay in the first payment due to the sometimes prolonged application process. Housing benefit is always paid at least four weeks in arrears and is paid four weekly (13 payments a year), this makes for irregular payments of rent to our landlords. This also complicates the rent guarantee which will not be paid for housing benefit tenants until they are at least two months in arrears. Management Fee Upon introduction of and/or arranging a tenancy an administration fee (see Schedule of charges) becomes payable. We will deduct this fee from the 1st month’s rent. No commission will be charged on the month’s rent from which the administration fee is deducted. Thereafter a management fee at the agreed percentage of the gross monthly
rent is payable. (see Schedule of Charges). For Landlords who place
more than one property with us there is a reduced charging scale on
the additional/extra properties. If a special deal is negotiated with
you then you will have this confirmed in a separate letter. Landlord Payments Upon the signing and exchange of the Tenancy Agreements by both parties, the landlord will receive a statement from the Agent. Where the Landlord’s account details are available, net rent will be automatically transferred into the Landlord’s chosen bank account within seven working days of receipt of cash payments or clearance of the cheque, if payment is made by cheque. Each month, upon receipt of the rent, we prepare and forward to you a detailed statement. Where bank account details are provided, funds will be deposited into your account, otherwise a cheque will be attached and mailed. Please note that we bank at Barclays. Any bank transfers into a Barclays account will clear immediately. However, funds transferred to other banks can take between two and seven days to appear in your account. Repairs & Maintenance We will normally act on repairs according to your instruction and approval .We can arrange for repairs to be carried out by our recommended trades people at our request. On occasions it will be necessary to act without your approval. We will in the case of an emergency, instruct contractors to carry out repairs. We will maintain a complete record of maintenance carried out to your property for future reference. Repairs carried out on your behalf are paid for from the rental income received from your property unless otherwise instructed and a copy will be attached to your rental statement for your records. Many of our repairs and general maintenance are carried out by R&H Property Services our in house partners, who will carry out most repairs. If they are unable or unqualified then they will call in the relevant experts. R&H Property Services are not VAT registered at this time. Property Inspections The agent will carry out a mid-term inspection (after 3 months) and notify you of the outcome if there are any problems. This inspection is an opportunity for the tenant to advise us of any specific requests or maintenance issues as well as the agent checking that the property is in order . If the Landlord requests an additional property visit a fee will be charged. (see Schedule of Charges). Please note that these inspections are not property surveys, they are simply a report on the general appearance and condition of the property. End of The Tenancy The vacating tenant may choose to either return their keys to the Agent/ Landlord or meet at the property at a prior arranged date and time for a final inspection to be carried out. At this time the landlord may or may not choose to be present. We will contact you to discuss the final inspection and any deductions from the tenants deposit that are necessary. If the agent does not agree with the Landlord’s decision for any specific deduction, the Agent will not be liable to represent the Landlord and any further negotiations must be directly between the Landlord and Tenant. A tenancy can only end if either party has given the appropriate notice and it has been given in the prescribed form. Once an Assured Shorthold tenancy is in place you are guaranteed that the tenant will be in possession for the whole duration of the initial period (usually six months). The tenants are also guaranteed security of knowing they cannot be removed during that period unless they breach the agreement. If you want the tenants to leave at the end of the initial period (usually six months) you must give a full two months notice of your requirement for possession. This means that you must be careful about the date on which notice is given. Each tenancy has a different start date and it is this that determines when notice must be given. If the start date was the 15th of the month then giving notice on 15th or after will delay the repossession of the property. Giving notice on the 14th however, will ensure that the two months notice starts immediately. In theory you are also entitled to the same period of notice from your tenants during the initial period. However, they can give the keys in before noon on the last day of the initial period and walk away unscathed. At the end of the initial period you have two further choices. You can renew the agreement for a further fixed period or you can do nothing and the tenancy reverts automatically to what is known as a “Statutory Periodic Tenancy”. Under this you must give the tenants two full months notice in the prescribed format and they must give you one full months notice. Ending The Landlord/Agent Agreement If at any time the Landlord or Agent should wish to end this agreement to manage your property we shall be entitled to full commission based on the gross rent, for a period of 6 months, or the same period of notice from the date of your written instruction unless the tenancy terminates earlier than the six month notice period. The Landlord authorises the monthly deduction of fees, where the Agent is collecting the rent on behalf of the landlord, upon receipt of the tenant paying their rent. At the Agent’s discretion the above fees may be changed by giving one month’s written notice to the Landlord or the Landlord’s representative. In the event that a tenant introduced to you by the agent negotiates the purchase of the property which he/she is renting or had been renting the agent shall charge a fee, which will be an agreed percentage of the negotiated purchase price. The fee is payable upon completion whether or not negotiations have been carried out by the agent. If the property is sold during the course of a tenancy the Landlord will be obliged to ensure that the purchaser will continue with the Agents agreement or pay the appropriate six months commission. Vacant Properties If at any time the property is vacant , the services as detailed above are not provided. If repairs are necessary during this time, to cover expenses, a float must be paid by the landlord to the Agent. In this case a fee of 15% of the net invoices submitted for payment will be payable to the Agent. To carry out regular checks on the property during such vacancies a fee equivalent to the normal inspection fee will be levied for each visit required. Tax Implications Please note that rental income is classed as taxable by the Inland Revenue. The onus is on you to declare it. If the Revenue ask us for details of rent payments received on your behalf, then we must tell them. It is important to check with your accountant in respect to actual deductions. However, mortgage interest as well as other expenses against the property can be claimed as a tax deduction. This can include repairs, management fees and other service charges, insurance premiums etc. We can offer an accountancy service if you wish. Mortgage If your property is mortgaged, prior to letting, permission should be obtained from the lender to let your property. If you fail to obtain their agreement this will usually be a breach of your mortgage conditions. It will be your responsibility to inform us of any special requirements from the lender that are related to our duties as the Agent. Similarly, you should notify us of any other covenants or restrictions pertaining to the property. Insurance You should advise your insurance company and confirm that letting the property does not invalidate the policy. Any policy requirements relevant to our management of the property should be disclosed to us as soon as possible. If your current insurer is not happy to extend your cover, we are able to arrange for cover for legal and rent protection as well as buildings and contents in association with Key Financial Decisions LTD our in house Insurance Brokers. FICO If you will be or are currently living overseas it will be necessary for you to complete an NRL1 form, Exemption certificate from the Inland Revenue. This will enable you to collect gross rent and then lodge your own tax return. Until such time that a FICO number is given by the Inland Revenue, we are compelled to deduct overseas landlords tax at 22% from all payments made to you. However, if you are a non-tax payer you will be able to claim this back through your tax return. Leasehold Properties If your property is leasehold it may be necessary for you to obtain permission from the freeholder to sub-let. Warranties & Service Contracts We must be informed of all warranties and service contracts pertaining to the property in order to eliminate any unnecessary expenditure to you. Finally The landlord fully indemnifies the Agent against all costs, claims, damages and expenses and other payments made pursuant to this authority or arising out of any breach or non-observance or non performance by the Agent and/or the landlord or such Statutory obligations or Regulations, Rules and Orders. The Landlord undertakes to ratify whatever the Agent shall do in the performance of their management service and to indemnify them against all costs, claims, payments and expenses incurred by them.
Legal and Other Requirements
Gas & Safety Regulations A tenant will not be allowed to move into a property that does not have a current Landlord’s Gas Safety Certificate. The annual testing of gas appliances and a gas safety check is compulsory. We insist on arranging this for you on an annual basis. We cannot allow landlords to make their own arrangements as we have a legal responsibility to ensure they are carried out within the required time scale. Smoke Alarms We require all properties to have a minimum of 1 operational fire alarm per floor. We also strongly recommend a carbon monoxide detector where gas appliances are present. Furniture & Furnishings The landlord must provide, in accordance with the Furniture and Furnishings (Fire) (safety) Regulations 1988, all furnishings must comply and any non-compliant items removed. All furnishings that are of the upholstered nature i.e. sofas, divans etc. must be of a fire resistant material and hold a fire safety label. The fire safety label will ensure that the product has passed a match & cigarette resistance test. Without this label the furniture or fittings are legally unacceptable. Electrical Appliances In the near future it is highly likely that annual safety tests for electrical appliances and electrical safety checks will be compulsory. We strongly recommend this as both the Landlord and Agent are liable in the event of accident or injury. Again, we can arrange this service for you. WARNING!!! If an appliance or household wiring is unsafe and kills or injures someone then you will be held legally responsible. INTRODUCTION SERVICE If you wish to manage your property yourself we are able to offer a choice of introduction only services which are as follows: STANDARD INTRODUCTION SERVICE We will advertise the property, carry out viewings and take up references on those short-listed. We will then serve the necessary Notice and prepare the tenancy agreement. We will obtain the tenant’s signatures to the documentation , collect the initial move-in funds, including deposit and then forward the documentation to you after exchange and signature. You will thereafter manage the property. Our fees will be deducted from the sums paid by the tenant and the balance will be forwarded to you. GOLD INTRODUCTION SERVICE We are now pleased to offer a new “Gold” Introduction Service
to Landlords. This service includes all benefits of the Standard Introduction
Service with the valuable addition of Rent Guarantee Cover for the first
four months of the new tenancy. Should you wish to continue the Rent
Guarantee Policy after the expiry of the first three months , the cost
will be equivalent to 3% of the calendar monthly rent. If you have taken advantage of our “Gold” Introduction Service you can make a claim on the Rent Guarantee scheme, which is fully under written by Home Base Property Rentals. Should the tenants fall just one month in arrears we will pay that rent to you within 10 working days of your claim in writing. Please note that for housing benefit tenants this is increased to 2 months. We cover the rent for three months with this scheme. In the event of not finding tenants for the property or you arranging a tenancy yourself without our assistance - no charge would be made. We do however ask that you inform us immediately should you agree to a tenancy privately without our assistance. Rent Collection Service We also offer a rent collection service with no other attached services, for your convenience. Other Services We will on your direction carry out the following: Video Record of Property Charges as in Schedule of charges. Please note that these terms and conditions and charges are subject to change at anytime. If you want an up to date version then please ask for a copy. Any agreed variation from the standard terms will be notified in a
separate letter addressed to the Landlord. |