A landlordís guide to residential lettings with Frank Harris and Company

We offer two levels of service to residential landlords:

1. Let & rent collection service – this includes the marketing of the property, appropriate advertising, the introduction of a suitable tenant, the taking up of references and negotiating the terms of the tenancy between the prospective tenant and the landlord.

We collect the initial funds (the rent and the security deposit), hold the deposit (as stakeholder) throughout the term, draw up the tenancy agreement document and arrange the inventory.

Additionally, we will receive the rent on behalf of the landlord, demand the rent in absence of payment, forward net rents to the landlord as well as preparing and submitting regular statements to the landlord and/or their accountant.

2. Letting and Management Service – this includes all of the services listed above. In addition we will:

  • Pay out, from the rent received, when instructed, any outgoings such as ground rent, service charge
  • Deal with any day-to-day maintenance matters including minor repairs
  • Undertake inspections of the property

Fees

Rent collection: 12% of rent (Including VAT)

  • Collect and remit the monthly rent received
  • Deduct commission and other works
  • Pursue non-payment of rent and provide advice on rent arrears actions
  • Make any HMRC deduction and provide tenant with the NRL8 (if relevant)

Fully managed: 19.2% of rent (Including VAT)

  • Collect and remit the monthly rent received
  • Pursue non-payment of rent and provide advice on rent arrears actions
  • Deduct commission and other works
  • Advise all relevant utility providers of changes
  • Undertake two inspection visits per annum and notify landlord of the outcome
  • Arrange routine repairs and instruct approved contractors (providing two quotes)
  • Hold keys throughout the tenancy term
  • Make any HMRC deduction and provide tenant with the NRL8 (if relevant)

Additional fees and charges (irrespective of level of service):

  • Preparation of an Inventory and Schedule of Condition
    • Cost will depend of the size and style of the Premises. Estimates will be given upon request. The cost is purely that of the inventory clerk and Frank Harris & Company do not take a commission on this
  • Preparation of our standard Tenancy Agreement usually being for a fixed Term of twelve months or less
    • £180.00 including VAT for a new Tenancy and £84.00 including VAT for a Memorandum of Agreement prepared for a extending a Tenancy including a Rent review
  • Preparation of a Deed of Variation during the Tenancy
    • £84.00 including VAT
  • Checking and making any alterations requested by the Landlord's solicitor to our standard Tenancy Agreement
    • £90.00 including VAT per hour or part of an hour
  • Services of Notices to Terminate a Tenancy when Frank Harris & Company are not managing the Premises
    • £90.00 including VAT
  • Visits during a void period using our care-taking service
    • £90.00 including VAT
  • Instructing contractors during a void period or if Frank Harris & Company are not managing the Premises
    • 10% of the contractor's net invoice plus VAT payable in advance together with the cost of the contractor. This service is only offered if Frank Harris & Company have written instructions from the Landlord and hold sufficient cleared funds to cover the cost of the work plus our fees
  • Supervising any work that is required before the commencement of the Tenancy to bring a Property up to the standard to allow it to be rented, whether commercially or legally
    • 10% plus VAT of the total cost of any work in excess of £500.00. Should Frank Harris & Company provide estimates or quotations for any pre-Tenancy works and the Landlord then decides to deal with these himself a fee of £90.00 including VAT will be payable
  • Supervising the partial or total refurbishment of a Property or carrying out works in excess of £500.00 whether during or after the Tenancy
    • 10% plus VAT of the total cost of the work but subject to a minimum fee of £240.00 including VAT
  • Making an insurance claim on the Landlord's behalf including meeting and negotiating with insurance assessors and organising quotations and supervising subsequent work
    • 10% of the work but subject to a minimum fee of £240.00 including VAT
  • Tax retention and completion of the documentation required by the Centre for Non Residents
    • £102.00 including VAT for each quarter
  • Informal deposit dispute adjudication where Frank Harris & Company do not manage the Property
    • £90.00 including VAT whether successful or not. Frank Harris & Company do not pass onto the Landlord the charges made by the TDS for belonging to such a scheme but any interest earned on the deposit monies will be retained by Frank Harris & Company
  • Preparation of documentation for County Court proceedings or TDS adjudication
    • £90.00 including VAT. Attendance at court or any tribunal on the Landlord's behalf will be charged at £90.00 including VAT per hour.
  • Provision of duplicate statements to the Landlord or the Landlord's accountant
    • £72.00 including VAT per statement or £120.00 including VAT for all statements covering a tax year
  • The cost of advertisements in specialist publications, preparation of brochures detailing the particulars of the Property including photographs (where applicable) will be subject to an additional charge. Full details will be provided on request.
  • Frank Harris & Company will take on lettings of two months or more. Where the Tenancy is for a period of four months or less, Frank Harris & Company will charge a fee equivalent to 15% plus VAT of the rent received for the full agreed rental term for the letting plus rent collection service only. Frank Harris & Company will collect the rent at the commencement of the Tenancy by way of deduction from the initial rents.

Some basic information about residential lettings

Tenancy Agreement – Our experienced lettings staff are able to advise landlords about the different types of tenancy and the legal aspects of a typical tenancy agreement.

Deposit – A deposit (usually equivalent to 6 weeks rent) is taken from the tenant prior to the start of a tenancy. This is to cover breakages, missing items and any damage over and above normal wear and tear. We hold the deposit as stakeholders throughout the term of the tenancy and refund it to the Tenant (less any deductions) after the end of the Tenancy. All deposits taken on an Assured Shorthold Tenancy are held according to the terms of the Tenant Deposit Scheme.

References – We apply for references on all prospective tenants.

Inventory – We will instruct an independent inventory company to draw up an inventory, conduct a check-in of the tenant at the start of a tenancy as well as a check-out at the end. The landlord pays for the drawing up of the inventory document and the check-in while the tenant pays for the check-out (usually this is taken from the deposit). Without a proper inventory it is very difficult to make any kind of claim against the deposit for damages, breakages or missing items.

Tax – Income tax is payable on rental income arising from a property in the UK. It is the responsibility of a landlord to declare their income when completing their annual tax return. Non-resident landlords should apply to the HM Revenue & Customs for an exemption certificate in order for us to make payments of rent without withholding any against possible tax due. Further information is available by speaking to one of our members of staff or by contacting the HMRC directly here www.hmrc.gov.uk/cnr/nr_landlords.htm

Insurance – It is the landlord’s responsibility to insure their property and the contents during a tenancy. A landlord should always inform their insurers that the property is to be let, as this may affect the cover and/or premium. Contents insurance for let properties is obtainable from specialist insurers. Leasehold properties usually include the buildings insurance as part of the service charge, but we would advise all landlords to check with the freeholder/superior landlord or block management company.

The Fire and Furnishings (Fire) (Safety) Regulations 1988 and (Fire Safety Amendments 1993 Regulations – this legislation stipulates it is an offence to furnish a let property with furniture and furnishings which do not comply with these regulations.

The Gas Safety (Installation and Use) Regulations 1994 and as amended 1998 – It is the landlord’s responsibility to maintain the gas appliances (if any) at a property. It is also a requirement that a safety check is carried out prior to any tenancy and annually thereafter for as long as the property remains let. We will not let a property until we are in receipt of a copy of a current landlord’s Gas Safety Record. A copy of this should be left in the property as well.

Decorations – We would recommend that a property should be offered in good condition and any decorations required are carried out prior to marketing. As an extra service we are able to assist landlords if necessary. Please contact a member of the Lettings department for further information about this.

Frank Harris & Company is an ARLA Licenced Member (www.arla.co.uk)
Client Money Protection (CMP) provided by ARLA
Independent Redress provided by OS:P
Regulated by RICS

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Search for property to
buy or rent in central London
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Bloomsbury
City
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