Looking After Your Property Safety Legislation & the Landlord Guidance Notes for Landlords Renting a Property We have a quantity of different types of properties on our books at any given time, which may range from bedsits to large houses. We ensure that rents are commensurate with the type of property, the area in which it is situated and the condition of the furnishings and decorations. We will be happy to discuss your requirements and offer you a selection of suitable properties. The Management Service The Letting Market in London The London Rental Market has for some time been very buoyant, with sustained demand for all types of property ensuring high rents. The legislation introduced by the 1996 Housing Act has also helped by strengthening the legal position of the landlord. It is therefore now an excellent time to be letting. You may have decided to let your house or flat in order to realise value from an asset that may have otherwise remained unused, or you may have purchased property to take advantage of an investment which currently yields an impressive combination of high annual income and accelerating capital growth, as London property values continue to rise. Either way, you will have to decide whether to look after the property yourself, or use the services of a professional property manager. The Brian Lack Management Service Brian Lack & Co have been established in London for over 30 years. Unlike some agents we have always given a high priority to lettings and management and have staff who are solely concerned with this side of our business. We currently have well over one hundred properties under management. Our objective when we manage your property is to reduce to a minimum the time and effort you have to put in, while at the same time keeping you fully informed of all matters of importance. You can be confident that your property is well looked after, and we take care of the problems. Return to top Looking After Your Property It is easy to under-estimate the amount of work involved in supervising a tenancy. The duties we routinely perform for our management clients include: Ensuring full compliance with the Landlord's statutory obligations Collection of rent and following-up late payers Notifying all utility companies that you are no longer responsible for their accounts and that the tenants are registered with them Inspecting and organising repairs Liaising with the local council regarding council tax and securing any discounts which may apply Payment of necessary bills on your behalf eg. contents insurance, service charges and mortgage Organising inventories at the start and finish of a tenancy Assessing dilapidations arising during the tenancy and obtaining compensation on behalf of the Landlord as necessary Regular inspection of the property Dealing with freeholders on matters arising from the tenancy Generally acting as an intermediary for the Landlord and Tenant to ensure that the tenancy runs smoothly. Return to top Safety Legislation & The Landlord Not all landlords are fully aware of their specific responsibilities in law under three important statutes. These are: The Gas Safety (Installation and Use) Regulations 1994 These require the Landlord to ensure that all gas appliances are maintained in good order and that an annual safety check is carried out. Certificates must be obtained. Furniture and Furnishings (Fire) (Safety) Regulations 1986 These set out detailed requirements for fire resistant upholstered furniture in all rented accommodation. Special conditions apply to different types of furniture. Electrical Equipment (Safety) Regulations 1994 These require annual inspection of the electrical installation and appliances to ensure safe operation. It is essential that these requirements are complied with, since failure to do so can leave the Landlord liable to criminal prosecution. At Brian Lack & Co we have systems in place to ensure the necessary checks are performed at the proper time. We also have arrangements with qualified CORGI gas installation engineers and NICEIC approved electricians, so that all work is done to a high standard and at a competitive rate. Brian Lack & Co will also advise you on exactly what obligations exist under the tenancy agreement. This becomes especially important if Tenants seek to vary the terms of agreement, for instance by leaving early. Perhaps most vital of all, Brian Lack & Co will make sure that the necessary notices are served on the tenants at the appropriate time so that possession of the property can be regained at the end of the contract without expensive legal complications. We can also provide helpful practical advice on the tax aspects of letting property in the U.K. including, if requested, the production of year end accounts for submission to the Inland Revenue. If you would like to learn more about the management service and our very competitive terms, please contact the Management Department on: 0207 472 5700 Return to top Guidance Notes for Landlords Brian Lack & Company Brian Lack & Company is an independent Estate Agent practising mainly in North West London with offices in St Johns Wood and West Hampstead. Our lettings department has been established for over 25 years. Our current portfolio includes nearly 500 properties and existing tenants include major international corporations and national embassies. Unlike many agents, we have experienced specialist staff concerned only with the letting of property; we also have a thriving management department. As a company, we give a high priority to the lettings side of our business and it is currently expanding rapidly. We believe this success is based on the quality of service we provide to our clients, helping them achieve an excellent return on their investment year on year combined with the security of knowing their property is in safe hands. Lettings Service As your letting agent Brian Lack & Company will undertake to do the following: 1. Inspect the property and advise on marketing. 2. Advise on an appropriate market value for letting. 3. Seek and introduce a tenant for the property. 4. Take up references as appropriate. These will normally include employer, bank and previous landlord references. 5. If the client is happy with the tenant, prepare contracts (our standard tenancy contract has been prepared with solicitor's advice to ensure that the client's interests are protected). 6. Collect from the tenant the first instalment of rent due under the tenancy, and the deposit. 7. Arrange for the signing of contracts and the release of keys to the tenant. 8. Obtain, if required, licence to sublet from the freeholder. 9. Serve the statutory certificate of gas safety (or, if no current certificate is available, arrange for a gas safety inspection, to be paid for by the client). 10. Serve a legally effective notice (if an assured shorthold) at the appropriate point in the tenancy that will enable the client to enforce possession following expiry of the contract. 11. Indemnify the client against any Stamp Duty costs that may arise in the event that the contract needs to be produced in legal proceedings. This could amount to £305.00 12. In addition, and for no extra charge, Brian Lack & Company will, if the client wishes, issue rent demands prior to the due date, collect rent from the tenant and monitor the payment position throughout the tenancy, following up any arrears problems should they arise. (This service does not extend to instituting legal proceedings: for further details on this please enquire.) Terms of Business a) If, for whatever reason, no tenancy is concluded then no fee is payable. b) If the tenancy does proceed, Brian Lack Company will charge commission for the services 1-12 detailed in "Lettings Service" of 10% plus VAT of the total rent due for the full contracted term of the tenancy. The commission is payable at the commencement of the tenancy. c) If the tenancy is ended by the tenant before the full term specified in the contract under the terms of our standard agreement the tenant will in most cases be liable to make good to the landlord the part of commission paid that relates to the unexpired portion of the term. If this does not apply, Brian Lack & Company will offer a credit. d) If there is a renewal of the tenancy further commission will be charged at the rate of 10% plus VAT of the total rent due for the full term of the renewal, the commission to be payable at the commencement of the renewal period. This will apply whether the renewal agreement is on the same terms and conditions as the original contract, or different and with the original tenant, or with any associated party of the original tenant (whether the associated party be a subsidiary/associate company or organisation, an individual within an associated company or organisation, or a party introduced by the original tenant). e) In the event that a sale is agreed with the tenant or an associated party during or after the tenancy, Brian Lack & Company will be entitled to a commission of 2.5% of the sale price plus VAT. f) For administrative and legal reasons the original of each tenancy agreement will be signed by Brian Lack & Company on the client's behalf, after a draft agreement has had client's approval. g) Although Brian Lack & Company will endeavour to ensure that suitable tenants are found, we cannot be held responsible for any breach of contract by the tenant. Full Management Service If you choose to adopt our full Management Service, you will have the benefit of all the services 1-12 detailed under “Letting Service” on page 1 and in addition Brian Lack Company will undertake to do the following: 1) Arrange with an independent inventory clerk for the preparation of an inventory of contents and condition at the outset of the tenancy and for the checking out of the inventory when the tenant vacates. 2) Arrange gas and electrical inspections with qualified contractors to ensure full statutory compliance. 3) If appropriate, arrange for the property to be professionally cleaned prior to the tenancy. 4) Pay (where requested) all regular outgoings such as service charges, ground rents, insurance premiums, utility and local authority charges if applicable. 5) Arrange for estimates, repair works and purchases as needed throughout the tenancy. 6) Give clients the benefit of the cheaper rates and charges we enjoy from our regular suppliers and engineers, as a major customer. 7) Check that al1 bills are fully justified, ensuring, for example with utility and council tax bills, that the client only pays when he or she is strictly liable. 8) Deal where necessary with queries from freeholders, superior landlords, and owners of neighbouring properties. 9) Carry out regular inspections of the property. 10) Handle negotiations with outgoing tenants over deposit deductions in case of damage, loss or other dilapidations. 11) Act as intermediary between client and tenant throughout the tenancy. Terms & Conditions 1. For the full Management Service, Brian Lack & Company will charge a management fee of 5% plus VAT of each rental installment as it is received from the tenant. This is additional to the letting commission detailed above. 2. When managing, Brian Lack & Company must be responsible for the collection of rent on the client's behalf. This is because as far as possible all fees and expenses arising will be paid by Brian Lack & Company out of rents received. 3. From rents or other funds received Brian Lack & Company will maintain a reserve of £400.00 as a float against costs and emergency repairs that may need to be carried out on the client's behalf. 4. Brian Lack & Company will have authority to organise purchases or repair works where these amount to £200.00 or less without consultation with the client. Where the cost exceeds £200.00 the client will be consulted. 5. In cases of outright emergency where the client cannot immediately be contacted, Brian Lack & Company will have authority to organise repair works at greater cost than £200.00, where they consider this to be in the best interests of the client. 6. The costs of all inventories, keys, purchases, repairs etc organised by Brian Lack & Company on the client’s behalf will be the client's liability and will usually be paid from rents as they are received. In the event of unusual expenditure the landlord may be required to provide supplemental funds before Brian Lack & Company can commit on their behalf. 7. The management service does not apply to periods when the property is not let. Advice on Preparing Your Property for Letting It is the landlords responsibility to ensure that the property is well maintained throughout. Prior to the commencement of the tenancy the landlord should see that the structure, plumbing, wiring and roof etc of the property are in good order, that the furniture complies with Furniture and Furnishings (Fire) (Safety) Regulations 1993, that the gas appliances comply with the Gas Safety (Installation and Use) Regulations 1994 as amended in 1996 and that electrical appliances comply with the Electrical Equipment (Safety) Regulations 1994. The standard of property required by prospective tenants is high and therefore when preparing a property for letting Brian Lack & Company would suggest the following: 1. That the decor should be of a fashionable and pleasing nature. 2. That the carpets should be in good condition and as plain as possible. 3. That the kitchen should be equipped with a washing machine and a dishwasher where possible. If the property is being let furnished then all the basic kitchen utensils should be provided. 4. Furniture should be co-ordinated throughout and of as good a standard as possible and should comply with current legislation. 5. Bed linen (for each bed) and towels should be considered. 6. Prior to letting the property, it is essential that all utilities i.e. gas, electricity and telephone are connected and that all appliances are in working order. 7. If the tenant is to maintain the garden, then all garden tools will need to be provided. Up until the commencement of the Tenancy it is the landlords duty to see that the garden is clean and in good order. 8. The landlord is responsible for ensuring that that the property is clean and tidy throughout (including windows) prior to the commencement of the tenancy. 9. All gas appliances must be checked at least once a year by a registered Corgi engineer to ensure safe operation. Records of all work undertaken must be retained and made available to the tenant prior to occupation. 10. Immediately prior to the commencement of the tenancy we strongly advise that an independent inventory clerk be engaged to inspect the property and prepare a report of its condition and full contents. How Brian Lack & Company Can Help We fully appreciate how time consuming it can be for a client to prepare a new investment property for letting. This is especially true now, when most landlords have demanding full time jobs of their own to attend to and many live a considerable distance from their rental property. Some of the tasks involved - cleaning, gas inspection and inventory - are covered by our full Management Service (see above) and you may decide to engage us on that basis. However, that can still leave a heavy burden in terms of purchasing, furnishing, decoration and engagement of suppliers and workmen. For this reason, Brian Lack & Company also offer a pre-letting Furnishing and Preparation Service, covering all aspects of making a property presentable for an initial letting. Our standard fee is 10% plus VAT of the total cost of items purchased and works carried out. Alternatively, we are happy to negotiate a flat fee. As an additional service, we will also carry out inspections of the property on request for those clients who do not already have this benefit under the terms of the full Management Service. A fee of £40.00 plus VAT per inspection visit will be charged and a report supplied to the client. General Notes Consent for Lettings Prior to commencement of any tenancy, the landlord should ensure that consent for letting has been granted by all applicable authorities, such as Freeholders, mortgagees and banks. Taxation Income from letting a UK property is subject to UK income tax, even if the landlord is an overseas resident. This includes companies registered overseas. Under the Inland Revenue's Non-Resident landlords scheme overseas landlords can gain approval to receive their rents with no deduction of tax at source. The procedure is straightforward and we can supply the necessary forms. Without such approval the collecting agent is bound by law to deduct tax at basic rate and forward this to the Inland Revenue. Where the tenant pays rent directly to an overseas landlord, the law applies to the tenant as it does to the collecting agent. Unless the landlord has formal approval from the Revenue, the tenant is in most cases obliged to account to the Revenue for tax at basic rate on the rent paid. (Please note that if instructed Brian Lack & Company will prepare an income and expenditure account in respect of rental income for submission to the Inland Revenue for a fee of £200.00 plus VAT per property for each tax year.) The Assured Shorthold Tenancy The Assured Shorthold Tenancy was introduced in the 1988 Housing Act to encourage the private letting sector and modified in the 1996 Act. Our standard form tenancy agreement is designed to create an Assured Shorthold Tenancy for lettings to individuals though certain types of tenancy are excluded from this legislation. The merit of the Assured Shorthold Tenancy is that the landlord will obtain possession either at the end of the contracted period, or after six months (whichever is longer). An order for possession can also be granted before the end of the contracted period in circumstances such as serious tenant default. Please note that in al1 cases a court order is required before a tenant can be forced to leave. Emergency Repairs for Non-Management Properties It is recommended that, when the landlord is managing the property himself, the tenant be provided with names of service engineers to be contacted in case of emergency. Ideally these should be supplied in the form of a folder also containing full operating instructions and guarantee cards for all the appliances in the property. It should be made clear to tenants whether or not they have authority to arrange repairs at their own discretion, or whether they are expected to contact the landlord where possible. Brian Lack & Company will arrange repairs in the case of non-management properties where circumstances make this imperative, but in all such cases an attendance fee will be charged. Insurance It is the landlords responsibility to ensure that all contents are adequately insured throughout the term of the tenancy, and for any vacant period consult their insurers/brokers to ascertain if any additional cover is required or if security measures need to be taken. Rental Remittance It should be noted that, where Brian Lack & Company collect rent on the client's behalf, a period of five to eight working days must be allowed for between receipt of rent from the tenant and onward transfer to the client. This is because of the need for tenants’ cheques to be cleared by the bank and to allow for administration time. The sum forwarded to the client will be net of any commission, fees and other liabilities arising. Rent Arrears Brian Lack & Company cannot be held responsible for any tenant's breach of contract or non-payment of rent, or any costs incurred in obtaining such payment. The landlord is responsible for any legal costs arising from non-payment or other breach, including the cost of possession proceedings. Return to top