Landlords Information
Landlords Information
INTRODUCTION
Thank you for looking at our website. This brochure has been designed to help you understand the key points regarding the letting of your home or your investment property. We are able to offer a full range of services to all respective Landlords. As we are well aware Landlords’ requests may vary and we are only too happy to meet your requirements.
Our premises are conveniently situated within the very heart of Reading’s bustling and expanding town centre. We are also able to offer information and services relating to sales and purchasing of investment properties giving Jon Rosi Management a commanding place in the letting market.
We are aware that not everybody can be held to normal working office hours. It is our aim to go beyond these hours and give Landlords and tenant’s information and services second to none.
Our advice and knowledge is always available. If you do have any further queries or questions please feel free to contact our office.
Telephone: 0118 9511011
Email: email@jonrosi.co.uk
Website: www.jonrosi.co.uk
SERVICES WE PROVIDE:
We offer three levels of letting and management. The type of service you choose should be determined by your situation and exactly how much involvement you wish to have in the management of your property.
If you are unsure of which service meets your requirements advice is at hand.
LETTING ONLY - An Introductory Service:
Our fee is 9.6% inclusive of VAT (8% plus VAT) of the gross rental over the period of the tenancy. The fee will be deducted from the first monies collected by the agency and the balance forwarded to the Landlord.
For this service we will:
1. Consult and advise you on rental value and acknowledge your request of tenant.
2. Advise you on current legislation and Landlord’s obligations.
3. Market and advertise your property which will include listing it on four of the UK’s largest property portals being Rightmove, Zoopla, Primelocation and On-the-Market.
4. Liaise and organise all viewings whilst accompanying all prospective tenants at the property.
5. Fully reference all tenants and carry out Right to Rent Checks along with caring out verification checks on the passport and visa supplied to validate them for authenticity (Subject to an additional charge) .
6. Collect the first month’s rent and holding deposit (equivalent to 5 weeks rent) prior to tenancy commencement.
7. Organise and prepare an inventory of the property. (Subject to an additional charge).
8. Organise a check-in against the inventory at the property and audible test smoke alarms and, if applicable, carbon monoxide alarms (Subject to an additional charge).
9. Take meter readings on Check-In and inform the relevant utility companies. (Subject to information provided).
10. Set up monthly Standing Order rental payments from the tenants to the Landlord’s bank account.
11. Prepare the Tenancy Agreement & associated required prescribed paperwork. If using our Tenancy Agreement this will incur an additional charge of £120.00 inclusive of VAT (£100.00 + VAT) for both landlords and tenants copies.
12. Arrange and organise the Tenancy Agreement and associated prescribed paperwork to be signed by the tenants whilst overseen by a member of our staff and at our offices.
LETTING AND RENTAL COLLECTION SERVICE:
Our fee is 12% inclusive of VAT (10% plus VAT) of the gross monthly rent collected and deducted monthly.
This service is initially set up in the same manner and with the same procedures as with the LETTING ONLY service. This enables the Landlord to manage his own property whilst alleviating the responsibility of rent collection. Rentals will be collected via Jon Rosi Management on a monthly basis and paid over to the Landlord along with a monthly statement.
FULL MANAGEMENT SERVICE:
Our fee is 14.4% inclusive of VAT (12% plus VAT) of the gross monthly rent collected and deducted monthly.
This service is also initially set up in the same manner and with similar procedures as in LETTING ONLY and LETTING AND RENTAL COLLECTION SERVICE. Full management is the complete package allowing Landlords to take advantage of all our services along with our skills in tenant and property management. It is highly recommended for Landlords going overseas or living long distances from the property in question. Local Landlords with more than one property may wish to choose this option, certainly if the property has been purchased for long-term investment.
Additional full management and services are:
1. A property inspection and report will be initially carried out after the first three months of the tenant’s occupation, with subsequent six monthly inspections thereafter and to be determined by the length of the tenancy.
2. Repairs and maintenance organised and undertaken on behalf of and with the Landlord’s authority. (Landlords are able to nominate preferred contractors or allow us to appoint contractors on their behalf.)
3. Liaise and organise with Landlords and Tenants for the renewal and extensions of Tenancy Agreements.
4. Communicate with Landlords and Tenants regarding all aspects in connection with the property let.
Please note if our agency is acting for you under our Letting and Rental or Full Management Service, the start date of the tenancy will generally indicate the rent due date which is the date that funds should leave the tenant’s account. Whilst we will endeavour to pay all rental monies to you promptly please be aware that due to bank clearance times, accounting the money as a guide may take up to 14 days (to allow for weekends and bank holidays) from the original rent due date. However you may find that these rental funds are cleared sooner depending on which bank your account is held with.
REFERENCING TENANTS:
It is fair to say that most landlords will not want to grant a tenancy to a tenant until the tenant (and guarantor if applicable) have been fully referenced. As the landlords letting agent we will undertake that the tenants (and guarantors if applicable) are fully referenced which will include a credit score, previous landlord’s reference (if applicable) and employment verification. Further to this we will also carry out additional checks to ensure that the identification supplied ie passports and visas are verified for their authenticity.
Our charge for referencing each tenant, occupant and guarantor (if applicable) will be £60.00 including VAT (£50.00 plus VAT).
For example if a tenancy is to have two tenants and one guarantor the referencing charge will be 3 times £60.00 totalling £180.00.
TENANCY AGREEMENTS:
One of the most important things with regards to letting your property is the Tenancy Agreement and in most cases this would be an Assured Shorthold Tenancy. We would advise Landlords to use a 12 month Tenancy Agreement incorporating a break clause for either party, at the 6 month point. This should give reasonable flexibility to Landlord and tenant alike should either party’s circumstances change. Within our Tenancy Agreement the tenant is able to give one month’s notice. However, it is law that Landlords must give tenants at least 2 month’s written notice if they wish to seek possession of their property. We pay for our tenancies under licence and they are updated from time to time and are currently up-to-date with the 1988 Housing Act as amended in 1996 and 2004. Landlords have the right to supply their own Tenancy Agreements or have a solicitor draw one up on their behalf.
The cost for our Tenancy Agreement is £120.00 inclusive of VAT (£100.00 plus VAT).
NOTICES
It may be necessary or requested by the landlord that certain Notices have to be served on the tenant. Most commonly this would be giving the tenant notice that the landlord requires possession, possibly so the landlord can move back in to the property or wants to sell the property. Usually for this purpose the Notice to be served is a Section 21 Notice. If a landlord requires our agency to draft and serve a Section 21 Notice by hand then the charge will be £60.00 inclusive of VAT (£50.00 plus VAT). However if the Notice being served on the tenant is relating to rental arrears then no charge will be made by our agency for serving the Section 21 Notice.
RIGHT TO RENT LAW
As of the 1st February 2016 it became law that all Landlords must carry out checks on their tenants to ensure that they have a right to reside in the UK. Checks must include, but not limited to, taking copies of passports, identity cards and driving licences along with copies of Visas, if applicable. If the tenant is not a United Kingdom National, Swiss National or a National of EEA (European Economic Area) then they will require a Visa to reside in the UK. Copies of the tenant’s identification and Visas must be taken prior to the commencement of the tenancy but within 28 days of the start date of the tenancy. Copies of the tenant’s identification must be kept for at least 12 months after the end of tenancy. Further information regarding the Right to Rent Law can be found at www.gov.uk
DEPOSITS:
It is usual for our agency to request that the Tenant pays a deposit against the property they are renting. From 1st June 2019 it became law that a landlord or agent cannot receive a deposit to be more than the equivalent of five weeks rent for tenancies where the rent does not exceed £50,000.00 per annum and a maximum of 6 weeks deposit if the annual rent exceeds £50,000.00 per annum.
From the 6th April 2007, a law took effect concerning the way deposits can be held. There are heavy penalties to Landlords who do not comply with the deposit schemes and/or their terms and conditions. There are currently only three recognised ways of holding deposits.
Please find these listed below:
1. The Dispute Service (TDS). www.tenancydepositscheme.com
2. The Deposit Protection Service (TDPS). www.depositprotection.com
3. Tenancy Deposit Solutions Ltd (TDSL). www.mydeposits.co.uk
Please use the website address as detailed above for further information concerning the schemes. Jon Rosi Management reserves the right to use any one of the three schemes listed above and are happy to offer advice with regard to this.
Jon Rosi Management currently use The Dispute Service (TDS).
As a member agent there is a charge associated to log or amend or renew each deposit with this scheme. Due to the fluctuating annual charges from The Dispute Service the associated cost could vary, although currently we have been informed that this will not exceed £21.60 inclusive of VAT (£18.00 plus VAT) for each property deposit.
Should you choose our Letting Only Service – Then there will be a charge to lodge or amend or renew the deposit with The TDS Scheme of £24.00 inclusive of VAT (£20.00 plus VAT) for each Tenancy Agreement that is put in place.
Should you choose our Letting and Rental or Full Management Service; then there will be a charge to lodge or amend or renew the deposit with The TDS Scheme of £18.00 inclusive of VAT (£15.00 plus VAT) for each Tenancy Agreement that is put in place.
Please be aware that TDS may change their fee structure on an annual basis and therefore our agency reserves the right to alter the fee structure accordingly. Every landlord will be charged a fee on an annual basis for the tenants deposit to be held by The TDS.
INVENTORIES & CONDITION REPORTS:
As a Landlord you may be asking yourself if an Inventory & Condition Report is really necessary. We would highly recommend that all properties to be let have a current and up-to-date professional Inventory & Condition Report prior to the tenancy commencement. Whether the property is furnished or unfurnished it is still recommended that an Inventory & Condition Report is available and that the report contains a full listing and detailed account of the property’s fixtures, fittings, appliances, flooring and general condition including cleanliness. The Inventory & Condition Report can then be used at the end of the tenancy to determine whether any dilapidations and charges can be requested from the tenant’s holding deposit. In the event of the tenant querying any deductions, the Inventory & Condition Report can be used as supporting evidence. However, fair wear and tear must be taken into consideration. Without an Inventory & Condition Report it is highly unlikely that any of the government approved deposit schemes would award in favour of the landlord in the event of a dispute regarding dilapidations.
Tenants will be initially checked in against the Inventory on the commencement date of the tenancy and at this point smoke alarm and, if applicable, carbon monoxide alarms will be audibly tested and meter readings will be taken (please be advised that due to health and safety reasons only accessible meters will be read and external water meters under heavy coverings may not be able to be checked). It is then imperative that the tenants are checked out of the property and a report compiled at the end of the tenancy. The check-in and check-out will be carried out at the landlord’s cost as listed below.
The charges below include our agency organising the Inventory & Condition Report and the cost of reproducing the Inventory & Condition Report.
Inventory & Condition Report preparation charges:
Studio/1 Bedroom property £120.00 inclusive of VAT (£100.00 plus VAT)
2 Bedroom property £144.00 inclusive of VAT (£120.00 plus VAT)
3 Bedroom property £168.00 inclusive of VAT (£140.00 plus VAT)
4 Bedroom property £192.00 inclusive of VAT (£160.00 plus VAT)
5 Bedroom property £216.00 inclusive of VAT (£180.00 plus VAT)
Check-In charges:
Studio/1 Bedroom property £120.00 inclusive of VAT (£100.00 plus VAT)
2 Bedroom property £144.00 inclusive of VAT (£120.00 plus VAT)
3 Bedroom property £168.00 inclusive of VAT (£140.00 plus VAT)
4 Bedroom property £192.00 inclusive of VAT (£160.00 plus VAT)
5 Bedroom property £216.00 inclusive of VAT (£180.00 plus VAT)
The charges below include our agency organising the check-out and, if applicable, our costs for compiling a report and supporting evidence if the tenants dispute any charges or deductions that have to be sent to the deposit scheme and the independent case handler for their resolve.
Check-Out charges:
Studio/1 Bedroom property £120.00 inclusive of VAT (£100.00 plus VAT)
2 Bedroom property £144.00 inclusive of VAT (£120.00 plus VAT)
3 Bedroom property £168.00 inclusive of VAT (£140.00 plus VAT)
4 Bedroom property £192.00 inclusive of VAT (£160.00 plus VAT)
5 Bedroom property £216.00 inclusive of VAT (£180.00 plus VAT)
Note: The above charges are based upon the property being in reasonable decorative order, with a reasonable amount of contents, ie ornaments, linen, kitchen contents, etc. Exceptions to this are executive properties with more than two reception rooms and properties exceeding five bedrooms, which are quoted by separate negotiation.
We reserve the right to sub-instruct external inventory clerks. Inventories will be subject to a £72.00 inclusive of VAT (£60.00 plus VAT) updating and re-type fee, if required, and if using an existing inventory/condition report for a following tenancy.
FURNISHED OR UNFURNISHED:
It is entirely up to the individual Landlord if he wishes to furnish a property to let. You may find that there is not a great deal of difference in rental prices achieved for furnished or unfurnished properties. However, we have found that there seems to be a slightly higher demand for furnished properties in general. If you are in doubt as to whether you should furnish a property and to what level of furniture, please consult our office as we will be only too pleased to offer our advice.
FURNITURE AND FURNISHINGS (FIRE) (SAFETY) REGULATIONS 1988:
All furniture in this country bought new after 1989 should comply with current Fire and Furnishing Regulations. If you have any doubt regarding furniture compliance and you have no certification to its compliance, we recommend it is removed from the property. Breach of the regulations carries heavy penalties to the Landlord such as a fine of up to £5,000; a six-month imprisonment; or both. Look for the kite mark or labels of compliance on the following items, which must comply:
· Beds, headboards, mattresses, sofa beds and futons.
· Nursery furniture.
· Garden furniture (which is suitable for use in a dwelling).
· Sofas, chairs, including dining chairs if padded.
· Scatter cushions and seat pads.
· Loose and stretch covers for furniture.
· Any other soft filled items of furniture or furnishings.
Regulations Do Not apply to carpets and curtains or furniture made before 1950.
ENERGY PERFORMANCE CERTIFICATES (EPCs)
Energy performance certificates (EPCs) will provide prospective tenants with an assessment of the properties energy consumption rating. It is now law that any prospective tenant/purchaser should be given a copy of an EPC relating to the property. Under current legislation the EPC will be valid for ten years. (However if significant changes to the energy performance of the property are made, a new certificate will have to be obtained.) Failure to supply an EPC to a prospective tenant may lead to prosecution by the Trading Standards Department of the Council and can currently incur a fine of £200.00. From April 2018 it became law that a property must have a minimum E rating to be able to let it out and can carry a fine of up to £4000 for breaches to this law. However some properties may be able to apply for exemption to this rule if they meet certain criteria. It is the landlord’s responsibility to ensure that an EPC is available. If you would like our agency to organise a Licensed Domestic Energy Assessor to carry out an EPC we can do so at a cost of £102.00 inclusive of VAT (£85.00 plus VAT). The charge for the EPC includes organising access for the EPC surveyor and reproduction of the EPC’s for potential applicants and tenants.
THE GAS SAFETY (INSTALLATION AND USE) REGULATIONS 1994
It is law that Landlords are required to supply a Gas Safety certificate for all gas appliances connected with the property to be or already let. These are known within the trade as CP12’s and must be issued by a Gas Safe Registered Contractor. These must be carried out annually thereafter for as long as the property is let and copies given to the tenants.
SMOKE ALARM AND CARBON MONOXIDE ALARMS LAW AND LEGISLATION (ENGLAND) REGULATIONS 2015:
As of the 1st October 2015 landlords must supply smoke alarm and carbon monoxide alarms in rented premises.
The law states a smoke alarm is equipped on each storey of the premises on which there is a room used wholly or partly as living accommodation;
A carbon monoxide alarm is equipped in any room of the premises which is used wholly or partly as living accommodation and contains a solid fuel burning combustion appliance (for example but not limited to open fire places and wood burning stoves).
It is then required that checks are made by or on behalf of the landlord to ensure that each prescribed alarm is in proper working order on the day the tenancy begins for all tenancies starting after 1st October 2015.
ELECTRICAL ITEMS:
It is becoming more common for tenants to expect Landlords to provide white goods when letting a property. White goods usually consist of a cooker (gas or electric), fridge/freezer and a washing machine. Although this is not a necessity to secure a let, we feel it gives the property an advantage. You may or may not decide to leave further electric appliances e.g. vacuum cleaner, iron or microwave etc.
THE ELECRICAL SAFETY STANDARDS IN THE PRIVATE RENTED SECTOR (ENGLAND) REGULATIONS 2020
From the 1st July 2020 all landlords of private rented property will be legally required to have an Electrical Installation Condition Report (EICR) carried out on their property. The EICR will usually be valid for a 5 year period unless the report advises that the property should be re-inspected and a new EICR carried out sooner. Following the report if any additional inspection or remedial works are required within the report then these must be carried out within 28 days, or sooner, if stated within the report. Copies of the EICR report are required to be given to all tenants or prospective tenants within 28 days. A Local Housing Authority can impose a financial penalty of up to £30,000 on a landlord for failure to comply and breaches in the legislation.
More information in regards to this can be found at: http://www.legislation.gov.uk/ukdsi/2020/9780111191934
Our agency is more than happy to arrange a quote from a qualified contractor to carry out an EICR for our landlords, however there will be a charge of £30 including vat (£25 plus vat) for this service.
It is further recommended that all electrical appliances supplied to the property are tested under the Portable Appliance Test (PAT test) and this is done on a regular basis, although houses that form a licenced House in Multi Occupation (HMO), this is a mandatory requirement.
HOUSES IN MULTI OCCUPATION (HMO):
Under the changes in the Housing Act, the term “House in Multiple Occupancy (HMO)” is defined in Section 254 and 257 of the Housing Act 2004 and again amended in 2018. There are several types of HMO’s recognised and from 1 October 2018 any landlord who lets a property to 5 or more people – from 2 or more separate households – must be licensed by their local housing authority. We would advise that you look at Reading Borough Council’s website at www.reading.gov.uk to establish if your property falls under the HMO criteria. Your property may require licensing and/or also meet certain legislation compliance, (i.e. smoke alarms, electrical tests, emergency lighting, fire doors etc). Failure to meet these requirements may result in substantial fines and prosecution. Whilst Jon Rosi Management are able to offer advice and assistance with regards to HMO’s we cannot be held liable for landlords that do not meet all criteria set out in the HMO guidelines.
MORTGAGED PROPERTIES:
If the property is mortgaged or has a charge over it, you will normally have to request in writing permission from the lender to enable you to let the property. Banks and building societies may vary in the stipulations. If any information is needed from our agency we are only too pleased to help.
CONSOLIDATED TAX REPORTS:
At the end of the Financial Year, i.e. 5th April, we can generate what we call a Consolidated Tax Report (CTR). The CTR will not only show what rental incomes have been received on your managed property, it will also show and categorise all outgoing expenses handled by our agency over that tax year. The CTR will not show any payments made by you as the Landlord that have not been handled through our Agency which may be tax deductible. We advise that you seek advice from a qualified accountant or financial advisor concerning all matters relating to tax as our report is only designed to show you the monetary transactions that we have dealt with on your behalf.
The charge for the Consolidated Tax Report is £48.00 inclusive of VAT (£40.00 plus VAT).
OVERSEAS LANDLORDS:
If you are going abroad and will be classed as an Overseas Landlord under the Finance Act 2011, the Landlord or person or agent for the Landlord collecting the rent is duty bound to pay the tax on a quarterly charge direct to HMRC. Tax is currently calculated at 20% of the income. Landlords can apply for an exemption certificate and only when the agent collecting the rent receives written confirmation direct from HMRC can the said agent pay all rentals to the Landlord without deduction. All persons party to ownership must apply separately including husband and wife. This does not exempt you from tax, and HMRC will require the Landlord to submit an annual or quarterly statement of income and expenditure and net tax liability.
If you think you will be regarded as an Overseas Landlord please contact our office or your accountant. Information regarding this can be found on the government link below:
https://www.gov.uk/government/collections/non-resident-landlords-forms
INSURANCE:
Adequate cover must be in force for both buildings and contents insurance prior to the beginning of a Tenancy Agreement and kept up throughout the term of let. Landlords MUST ensure that their insurance agents are aware that the property is let. Contents and buildings cover must be assessed accordingly. If you would like quotes for contents and building cover we would be only too pleased to put you in touch with an insurance company who specialise in Landlords insurance.
RENT GUARANTEE AND LEGAL COVER:
As a Landlord you may have concerns if a tenant should default on their rental payments or in extreme circumstances you have to seek possession through the courts. Whilst as an Agency we will do our best in referencing the proposed tenants, this cannot guarantee that the tenant would always be in a position to meet the rental payments. Even the best of tenants could fall on hard times. In fact most rent defaults are due to an inability to pay when circumstances change, rather than a refusal to pay. Reasons can include unavoidable events like loss of a job, relationship breakdown, or long term sickness. Whilst you may be sympathetic to the situation, as a Landlord you may still need the money to pay your mortgage. If you are going to have concerns regarding this we are able to obtain a quote for an insurance policy to cover for rent guarantee and/or legal costs incurred in evicting a tenant as a result of non-payment. These products and policies may be more affordable than you may initially think. Please speak to a member of staff for more information.
Please Note:
We have shown our commission rates and charges both inclusive and exclusive of VAT in order to offer clarity and to assist you, if necessary, when comparing other agents’ fees.
All figures quoted maybe subject to change.
MEMBERSHIP AND CLIENT MONEY PROTECTION:
Jon Rosi Management Ltd is a licensed National Association of Estate Agents (NAEA) agent membership number M0046327 and has client money protection with Propertymark scheme reference C0011781 we are also a subscribed member of The Property Ombudsman scheme membership number N02578.
The Propertymark Accounting, Conduct and Membership Rules can be found here : https://www.propertymark.co.uk/working-in-the-industry/member-requirements/.
SUMMARY:
This brochure has been designed as a guideline for information only. It is our intention at Jon Rosi Management to offer Landlords a choice on how your property is let. Should you decide to instruct us with the letting or management of your property we will do our utmost to provide the best possible service we can to give you peace of mind. We value all business and take nothing for granted. Please do contact our office if you require any further information. We look forward to your valued instruction.
