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SELECTION OF TENANTS
Naturally, we act in the Landlords
interest, so we are as selective as we can be about prospective tenants.
We
will:
1.
Use a suitable referencing agency who will:
-
CREDIT CHECK
– Checks for financial strength/C C J’s.
-
ELECTORAL ROLL CHECK
– Current/previous addresses verification.
-
FRAUD CHECK –
Cross-referencing against date of birth, full name, current and
previous addresses.
-
AFFORDABILITY CALCULATION –
Confirms income to rent ratio affordability.
-
AUTHENTICATE – Confirms your
tenants identity.
-
RECOMMEND – Confirm in
writing whether they recommend the tenant is suitable or not.
2.
Obtain an advance rental payment and a dilapidations deposit.
3. Prepare the Tenancy Agreement and
relevant Housing Act Notices.
4. Draw up an Inventory of property
contents as a mutual Landlord/Tenant safeguard (if required).*
5. Arrange to check Tenants in to the
property (if required).*
* Chargeable items
if using let only service.
LET ONLY
Thorough vetting and referencing of
tenants, preparation of initial tenancy agreement and notices under the
1988 Housing Act. Fees charged at 80% of one months gross rent. Our fee
for the contract date will be payable in advance and will become due
either on the date of the tenant taking up occupation of the property or
the signing of the tenancy agreement whichever is the earliest.
LET AND
RENT COLLECTION SERVICE
Thorough vetting and referencing of
tenants, preparation of initial tenancy agreement and notices under the
1988 Housing Act, rent collection and monthly accounting. Fees charged
monthly at 8% of the gross rent received. This is subject to an initial
set up fee of £300. You will remain liable for our fees for such time
that the tenant introduced by Moverightnow Ltd. remains as a
tenant.
FULL PROPERTY
MANAGEMENT
To include thorough vetting and
referencing of tenants, preparation of tenancy agreements and notices
under the 1988 Housing Act; rent collection and the physical management
and checking of the property. Fees charged monthly at 10% of the gross
rent received. This is subject to an initial set up fee of £300. You
will remain liable for our fees for such time that the tenant introduced
by Moverightnow Ltd. remains as a tenant.
FULL MANAGEMENT SERVICE
If you will be
living away from the property, or simply prefer not to get involved, we
will:
·
Include a rent guarantee &
legal expenses insurance (free for the initial term of the contract).
·
Look after your property
for you (paying bills, rates, insurances, etc)
·
Make quarterly inspections
in your absence to ensure property maintenance and report back to you.
·
Effect repairs up to an
agreed limit immediately.
·
Under special
instructions, deal with refurbishing and redecoration.
·
Collect the rent and
credit your Bank or other nominated professionals.
·
Liaise with solicitors on
your behalf in the event of any dispute between Landlord and Tenant.
SET UP FEES
For the management, and let and rent
collection service, there is an initial charge of £300.
This charge includes:
-
Obtaining an
advance rental payment and a dilapidations deposit. (At least 1
months rent)
-
Preparing the
tenancy agreement and relevant Housing Act Notices.
-
Drawing up and
agreeing an inventory of property contents.
-
Checking the
tenant into and out of the property.
COMMISSION
CHARGED FOR SALES
In the event of a tenant, or a purchaser
introduced by MoveRightnow Ltd. proceeding to exchange binding contracts
to purchase, fees will be chargeable at the rate of 1.50% of the selling
price.
WHAT ELSE MUST BE
CONSIDERED?
BUILDING SOCIETY/MORTGAGE CONSENT If
your property is mortgaged, you will need to seek approval to the
letting from your mortgagee. This is normally readily given, if sought,
before letting arrangements are too far advanced. A small fee is usually
payable to the lender.
LEASEHOLD PROPERTIES
It is wise to check that your Lease does not contain a covenant
prohibiting letting. You should inform your Superior Landlord of your
intention to let, as it is likely that your lease requires you to do so.
You can check with your solicitor if necessary.
INSURANCE
We recommend that you inform your Insurance Company of your intention to
let at an early stage to ensure that cover for your property and
contents is not prejudiced in any way. Some Insurances Companies
restrict the contents cover on tenanted property, while others will
increase your premium to cover the increased risked. Additionally, it is
essential to ensure that your policy covers third party claims such as
injury caused by a loose fitting carpet. We will be pleased to advise.
INCOME TAX
Unless you are in the letting business and giving service, your rental
profit will be unearned or investment income and may be liable to tax if
you are a resident in the UK. When Moverightnow Ltd. act as either
the rent collecting or managing agents for a Landlord resident abroad,
the Inland Revenue will raise a Non Resident Approval number stating
that the Landlord named has been approved to receive rental income with
no tax deducted. Moverightnow Ltd. will require the approval number
before we can pass on rent without deduction of income tax.
This is not applicable to Landlords who
the Inland Revenue confirm are Crown Servants working and residing
abroad.
Professional help may be required to
calculate rental profits, to ensure that maximum expenditure is claimed
and to consider this profit in relation to any other income or charges
you may have. We recommend that most owners appoint an Accountant and we
will liaise with them on your behalf.
Several items of expenditure may be
allowed as a deduction from the rents we collect, including:
-
Television
rental
-
Insurance of property and contents
-
Repairs
-
Cleaning
-
Maintenance
-
Agents
fees including sundries.
-
Mortgage interest paid gross
-
Accountancy
charges for preparing statements
-
Depreciation of furniture and
fittings (wear and tear). Inland Revenue practise is to allow 10% of
the gross rent receivable. (N.B As legislation is frequently
changing; we suggest you check current figures with your
accountant).
CLEANING
It is the Tenants responsibility to ensure that they leave your property
in the same condition as they found it, fair wear and tear excepted.
Therefore, it is essential that the property is left in clean and tidy
order throughout, prior to the tenants moving in. Should professional
cleaners have to be used to get your property ready for re-occupation,
the cost will come from the Tenants deposit.
GARDEN If
you have a garden attached to your property, under the Terms of the
Tenancy Agreement, the Tenants are obliged to maintain your garden in
good order in accordance with the seasons of the year. It is your
responsibility to leave sufficient tools with which to do the work and
our management department will inspect your property to ensure
compliance.
You might wish to consider employing a
Gardener and this extra cost could be built into the rental.
INVENTORIES.
A detailed inventory is essential for both Landlord and Tenant. It lists
the fixtures and furnishings belonging to the property and should also
include their condition. Tenants are checked into your property against
the inventory and this then forms part of the contract between both
parties
UTILITES
You are advised to arrange for your gas, electricity and water meters to
be read and accounts settled prior to the commencement of the Tenancy.
In addition, you should advise the services that you will not be
responsible from a given date for payment of these accounts.
Where your property is vacant between
tenancies, we will liaise with the services on your behalf and endeavour
to ensure that the supplies are not disconnected.
OTHER EQUIPMENT
Landlords are requested to leave as much
information as possible regarding any appliances including boilers and
how to operate them. Instruction leaflets and guarantees relating to
electrical equipment should also be left, as problems often arise when
machines break down. This is more likely to occur if machines are not
being used properly due to lack of instructions.
DEFINITIONS OF TERMS:
DILAPIDATIONS:
These are works which are required to be carried out to a property, to
bring it up to the standard it was at the commencement of the letting,
fair wear and tear expected. Tenants are responsible for the cost of
these works, if they happened during the period of their occupancy.
DEPOSIT:
The
deposit paid by the Tenant will be placed with the Tenancy Deposit
Scheme, a Government backed scheme to safeguard tenants deposits.
Where we have arranged a let only tenancy for a landlord we will
only transfer the deposit if the landlord has the same or similar
approved registration with a deposit scheme.
TENANCY AGREEMENT:
This is a written contract between the
Landlord and the Tenant which is both legally binding and enforceable.
Although some of the obligations within
the Tenancy Agreement are determined by statute, additional clauses can
be included for the Landlord and Tenant, subject to their legal
enforceability.
The Tenancy agreement will contain such
things as the commencement and expiry date, length of Tenancy, amount
and frequency of rental payments, property address, Landlords’ name and
address and Tenants name and address.
OWNER/OCCUPIERS:
Under Part 1 of Schedule 2 to the Housing Act 1988, owners are
guaranteed possession of their property once a Tenancy has legally
expired.
OBTAINING POSSESSION OF YOUR PROPERTY
At the end of an Assured Shorthold
Tenancy, you have an absolute right to regain possession of your
property, assuming the relevant Housing Act Notice was served correctly.
An Assured Shorthold Tenancy giving at
least two months notice is generally granted for a term of six months
but can continue at the end of the six months on a ‘month to month’
basis if you wish. Alternatively, if all parties are in agreement, a
further fixed term can be granted by issuing a new tenancy agreement. If
you will require possession at the end of the fixed term, you must give
the Tenant two months notice in writing of your intentions, likewise, if
an agreement has been allowed to ‘run on’ after the fixed term has
expired.
If, however, the Tenant refused to
vacate the property, even thought the required notice was given Court
action will have to be taken. The Court must grant possession when you
seek it.
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