RESIDENTIAL LETTINGS TERMS & CONDITIONS FOR LANDLORDS

Landlords Obligations:

 

The landlord must have both title and power to enter into an agreement with Kompas Homes Ltd:

It is essential that Kompas Homes Ltd is informed as to the status of the landlord, i.e. whether the landlord is the owner/occupier or resident landlord (within the definition of the Rents Act) or whether the landlord holds the property as an investment. This information is required in order that the landlord is protected as far as possible.

Authority for Kompas Homes Ltd to let the property must be given in writing from all joint owners who should be named in the tenancy agreement.

 

If the property is Lease hold, any intended let should be permitted under the terms of your Head Lease; if a license is required from a superior landlord or managing agent, it must be available to Kompas Homes Ltd prior to the commencement of the tenancy. Furthermore, a copy of said Head Lease will be submitted prior to letting, as it may contain clauses which must be incorporated in a tenancy agreement.

 

It is the landlord’s responsibility to ensure that they have adequate insurance cover for both Building and Contents (including Public Liability) for the full period of tenancy, or any extensions thereof and for any period where the property is vacant. The landlord should also notify their insurers that the property is to be let: failure to do so may invalidate an existing policy for any future insurance claim.

 

In accordance with the Gas Safety Installation and User Regulations 1994 and 1996, the landlord must ensure that all gas installation, pipe works, fuels and appliances are checked for safety at least once a year by British Gas or a qualified Corgi-registered gas engineer. A record of each inspection must be retained and a Certificate of Satisfaction must be available for inspection by the tenant or relevant authority.

 

In accordance with the Electrical Equipment (Safety) Regulations 1994, the landlord must ensure that electrical equipment supplied as part of a let must comply with the regulations and be ‘safe’ and of no risk or injury to human or animal. Safety checks must be carried out annually and can be provided by Kompas Homes Ltd upon request in conjunction with Gas Safety and Sort Furnishing checks.

 

The landlord must ensure that all furniture supplied in a furnished let complies with the Fire & Furnishings (Fire Safety) Regulations 1988 as amended 1993. Furniture must pass ‘ignitability’, ‘cigarette’ and ‘match’ test. All furniture must carry a permanent label denoting that the furniture is fire resistant. All furniture that is non-compliant must be removed from the property and/or replaced prior to let. Kompas Homes Ltd will be happy to advise to ensure the property meets these required standards. You also agree to indemnify Kompas Homes Ltd against any breach of these regulations.

 

If there is any burglar alarm system, then clear instructions must be given to Kompas Homes Ltd prior to instruction if we are to market the property. During a tenancy, it is usual for the landlord to maintain an alarm system and therefore suitable arrangements should be made to continue with any maintenance contract throughout the term of the tenancy. If the alarm system is linked to a central monitoring system/police station then the tenant and Kompas Homes Ltd must be informed of the password. It is for the tenant to pay for any call out charges during the tenancy arising from accidental activation of the alarm (other than a confirmed technical fault) and to pay re-setting the alarm system when necessary.

 

The landlord must meet all rental hire payments and hire purchase payments for the period of the tenancy.

 

Payments such as ground rent and service charges on leasehold properties remain the responsibility of the landlord at all times.

 

Prior to commencement of the tenancy, all utility charges i.e. telephone, gas, electricity, council tax, water rates and service charges payable by the landlord must be paid up to the commencement date of the tenancy. Electrical key meters must not be in debit and the electricity key must be left in the possession of Kompas Homes Ltd prior to the tenancy sign-up. During ‘void’ periods or between lets, the responsibility for maintenance and payment of all the utilities converts back to the landlord where the property is not managed. It is your responsibility to take over the relevant supplies on the last day of the occupation; otherwise you risk termination of the supply.

 

The landlord agrees to supply Kompas Homes Ltd with a minimum of one complete set of keys, together with any security access codes and remote control devise, to carry out property viewings. Once a let is agreed, the landlord will supply additional complete set of keys for each tenant named on the tenancy agreement.

 

In the event of the landlord being unavailable or uncontactable whilst abroad prior to tenancy, it will be necessary to give Kompas Homes Ltd written authority in advance to approve the references and to sign the tenancy agreement on the landlords behalf.

 

 

TAX IMPLICATIONS

Income tax is payable on all rental income arising from the property in the UK regardless of the residential status of the landlord. Landlord domicile in the UK should include details of their income and expenditure from the let property when completing an income tax return in the usual manner.

 

Under the Finance Act 1995, all residential lettings agents are obliged to advice the Inland Revenue of all let arranged for a non-resident landlord for UK tax purposes. It is the responsibility of the letting agent, on behalf of the landlord, for the payment of any tax which arises from letting.

 

The non-resident landlord authorizes Kompas Homes Ltd to make sufficient deduction from rental income to meet any income tax demands at the basic rate to cover this liability. Non-resident landlord can, however, apply to the Inland Revenue to register for tax self-assessment. An Inland Revenue form can be supplied, on request, Kompas Homes Ltd: registration is relatively straightforward. If granted, the Inland Revenue will issue you with an exemption certificate: thus removing the obligation on the part of Kompas Homes Ltd to retain tax at source from rental income.

 

CERTIFICATES

Gas & Electric Certificates

£125.00

Gas Certificate

£55.00

Electric Certificate

£80.00

EPC Certificate

£75.00

 

 

 

 

 

 

 

Kompas Homes Ltd does not undertake to submit tax returns on a landlord’s behalf and recommend that you appoint a suitable qualified accountant to handle your tax affairs.

 

LANDLORDS INSURANCE

Kompas Homes Ltd can act as an introducer to specialist forms of rent and legal protection insurance that will cover you in such eventualities. Our staff will supply further information and obtain quotations on your behalf on request.

 

LEGAL STEPS

Should any breach of tenancy agreement or rent arrears be brought to our attention, you will be informed immediately. Thereafter, should you require legal assistance to resolve the matter; you will be responsible for all costs involved. Kompas Homes Ltd accepts no responsibility to undertake legal action on your behalf: the tenancy rests between yourself and the tenant(s). We will be happy to recommend the appropriate services of a solicitor.

 

 

AVAILABLE SERVICES

 

 

1.            TENANT INTRODUCTION

Kompas Homes Ltd will provide a free rental valuation of your property and advice as to the current rental value we feel can be achieved. We will further advice you of any requirements necessary to achieve the optimum rent.

 

Kompas Homes Ltd will arrange for prospective tenant, accompanied by a member of staff at all times, to view the property.

Having found a tenant(s), Kompas Homes Ltd will apply for the necessary financial and personal references to determine the suitability for the tenancy. Liability will not be accepted by Kompas Homes Ltd for any tenants accepted by the landlord without full reference passes.

 

Kompas Homes Ltd advises that you have a detailed Inventory Report of the property complied, its contents and the condition therein and Kompas Homes Ltd will be happy to instruct and Independent Inventory Company to compile this report on behalf of the landlord. Kompas Homes Ltd will also arrange for the Inventory Company to attend a ‘check in’ with the tenants and at this time the tenants will be asked to sign a ‘schedule of condition’ confirming the status of the Inventory Report. Charges for this service will be relevant to the size and content of the property (details available on request). Kompas Homes Ltd cannot accept liability for an error or omission on the part of the Inventory Company. It is normal practice for the landlord to pay for the preparation of the Inventory Report.

 

Kompas Homes Ltd will prepare the appropriate Tenancy Agreement and any relevant statutory forms where applicable, unless otherwise instructed, thereafter supervise and co-ordinate the documentation until such time as the Agreement has been signed and an exchange have been affected. Where ever possible, Kompas Homes Ltd enter into contracts that come under the Housing Act 1988 and tenancies are drawn up under the guidelines for Assured Shorthold Tenancies. Company lets do not fall into this category; in this case a license is granted. If you are at all unsure about legal issues concerned with letting, we advise you to consult a solicitor.

 

 

 

 

Kompas Homes Ltd will advise the Tenant(s) of their obligations in relation to the Tenancy Agreement.

Kompas Homes Ltd will obtain from the Tenant a Security Deposit (normally 1 month rent) against possible dilapidations.  Amended schedule 10 of the Housing Act 2004, effective from 6 April 2007, requires all the Landlords and Agents taking deposits for the Assured Shorthold Tenancy in England and Wales to safeguard them with a Government-authorised tenant deposit protection scheme. Further details on Tenancy Deposit Protection Scheme can be found on www.depositprotection.com.

 

Kompas Homes Ltd will notify the utility services (gas/electricity/council tax/water) of the change of subscriber at the beginning of the Tenancy. Kompas Homes Ltd cannot be held responsible for any failure of the various services to comply with Kompas Homes Ltd written requests.

 

Two month prior to the end of the tenancy Kompas Homes Ltd will check whether the landlord and tenant(s) wish to enter into a new extended Tenancy Agreement.

 

 

FEES

Administration fee

Equal to 2/4 of monthly rent (+ VAT)

Tenancy Renewal fee

£50.00

Tenancy Agreement duplicate

£25.00

 

 

 

 

 

 

 

 

2.            FULL MANAGEMENT SERVICES

 

In addition to all the services provided by the Introduction of Tenant Service as above, the Full Management Service offers the following:

Kompas Homes Ltd will arrange the collection of rental monies in accordance with the terms of the Tenancy Agreement. The collection of rent does not include taking legal action on your behalf for the recovery of late or non-payment of rent. In the event of non-payment of rent, you will be notified at the earliest opportunity.

 

Kompas Homes Ltd will prepare and submit regular Statement of Account to the Landlord or appointed representative and pay the net monies to the Landlord (See ‘Where Rent is to be Paid’). The date of payment cannot be guaranteed but should fall approximately 3 to 5 days after the rent date due.

Kompas Homes Ltd will investigate any rent arrears and keep the Landlord fully appraised for any problems. Kompas Homes Ltd will serve the relevant notice i.e. Section 8. Kompas Homes Ltd can assist in instructing a solicitor. Please note that all associated costs would be payable by the landlord.

 

Kompas Homes Ltd will not be liable for non-payment of the rent during the agreed Tenancy or held responsible for any damage that may have been occurred during the Tenancy Agreement Period.

The Landlord has a statutory responsibility for the upkeep of the property pursuant to Section II of the Landlord and Tenant Act 1985. Kompas Homes Ltd agree to look after day-to-day maintenance, repairs and servicing of appliances, assuming there are available funds from the rental monies received on behalf of the landlord. However should the total rent for the term be paid in advance at the commencement of the Tenancy, Amended schedule 10 of the Housing Act 2004, requires Agency taking deposit (usually equivalent of one per calendar month’s deposit) held for any contingencies, which may occur during the Assured Shorthold Tenancy in England and Wales to safeguard them with a Government-authorised tenant deposit protection scheme. Wherever practical, Kompas Homes Ltd will obtain approval prior to any works being undertaken but will proceed with works up to a cost of £150 in any one month, or in emergency, to protect the interests of the Landlord, without prior consultation. In all other cases we will obtain written estimates for major repairs or maintenance for consideration and approval by the landlord prior to commencement of such works. Any professional fees incurred in conjunction with said works must be paid by the Landlord.

 

If the landlord fails to comply with any of the terms and conditions of the tenancy and/or management agreement and such failure if capable of remedy is not remedied within 14 days of receipt of a written notice of such failure the Managing Agent may terminate this agreement without further notice and the landlord shall be Liable to pay the Managing Agent a fee equivalent to 10% of the gross income of the remaining term of any tenancy agreement under management subject to minimum term of one year from the commencement date of management.

 

The landlord will not appoint any other managing agent otherwise derogate from this agreement BUT may at any time, if so required, giving two months notice, may terminate this agreement on payment of 10% of the gross rental income due on the remaining term of any tenancy agreement under the management subject to minimum term of one year from commencement of management Kompas Homes Ltd will make three-monthly visit to the property providing the property is within a reasonable distance from our office, to carry out general inspections. Please contact our property management department if more frequent visits are required.

 

Kompas Homes Ltd strongly recommends that Landlords make arrangements to have their post redirected by the post office. Kompas Homes Ltd are unable to provide a forwarding post service and cannot assume responsibility for items for mail delivered to the property during tenancy.

 

At the end of the Tenancy Agreement, Kompas Homes Ltd can arrange for the Inventory to be checked by the Inventory Company and, if necessary, for Schedule of Dilapidation’s to be prepared. Kompas Homes Ltd will then negotiate and agree Dilapidation’s on behalf of the Landlord and make the appropriate deductions from the Tenant’s deposit.

 

Kompas Homes Ltd management fees do not include supervision of the property when it is not let. Specific instruction by the landlord to make periodic visits to the property will incur a fee of £40.00 + VAT per visit.

 

FEES

Administration fee

Equal to 2/4 of monthly rent (+ VAT)

Management fee

10% of each gross monthly rent (+VAT)

Tenancy Renewal fee

£50.00

Tenancy Agreement duplicate

£25.00

 

 

By | 2018-01-10T12:08:35+00:00 January 9th, 2018|