Letting Terms and Conditions
SERVICES
Our Letting Only service includes marketing your property, taking prospective tenants for viewing, arranging references and credit checks through an independent referencing company, preparation of the tenancy agreement and legal notices in accordance with relevant Housing Acts and other legislation. We can also arrange the preparation of inventories and checking in/out of tenants. The charges levied are separate to the standard fee and are dependent on the size of your property. Please refer to the Additional Services schedule for information.
Under the Letting Only Service, the landlord is responsible for collecting subsequent rental payments from the tenant. However, London Move Ltd will assist where possible in the setting up of a suitable arrangement between the landlord and tenant. The landlord is responsible for ensuring compliance with the Tenancy Deposit Protection (TDP) legislation 6th April 2007.
Upon finding a suitable tenant, you will be charged an 8% plus VAT Letting fee. This is calculated on the gross amount of the rental for the duration of the tenancy agreement and shall be deducted from the advance rent received. Any outstanding balance must be settled within 5 working days of the moving in date. A further 7% plus VAT fee will be charged if the tenancy is extended second period and for any subsequent renewals
LANDLORDS RESPONSIBLITIES
(i) Energy Performance Certificates (EPC) 1st October 2008
a) From October 2008 it will be a legal requirement to provide an Energy Performance Certificate (EPC) valid for ten years to all tenants in England and Wales the landlord will need to provide an EPC prior to the commencement of any tenancy
b) If London Move Ltd are not in possession of a valid EPC prior to the commencement of a tenancy, we reserve the right to appoint an accredited Energy Assessor to produce a certificate. The landlord is liable for all charges and will be levied accordingly
(ii) The Gas Safety (Installation & Use) Regulations 1994
a) To ensure that all gas appliances are in compliance with the above, a CORGI registered engineer must conduct an annual inspection and maintain a service record. Either the landlord or London Move Ltd can arrange the inspection, but a copy of the valid engineer's certificate must be obtained prior to the commencement of the tenancy
b) If London Move Ltd are not in possession of a valid certificate prior to the commencement of tenancy and annually thereafter, we reserve the right to appoint a CORGI registered engineer to inspect all gas appliances and their installations and carry out any remedial works where necessary. The landlord is liable for all charges and will be levied accordingly
(iii) Fire & Furnishings (Fire) (Safety) Regulations 1988 (Amended 1993)
a) To ensure that the furniture and soft furnishings supplied in the property are in compliance with the above. It is worth noting that furniture manufactured prior to 1950 is not covered by the regulations because the defective materials that are now prohibited (in particular, unsafe types of foam filling) were not in use at the time. Soft furnishings that do not comply should be removed from the premises prior to the commencement of the tenancy. Accordingly, any furniture purchased for the property after the date of the agreement will also comply with regulations for the duration of the tenancy
b) London Move Ltd can arrange for soft furnishings to be checked and certified prior to the commencement of the tenancy. The landlord is liable for all charges and will be levied accordingly
(iv) The Management of Houses in Multiple Occupation (England) Regulations 2006
The above act requires mandatory electrical inspections for a house in multiple occupation (HMO). This is defined as accommodation occupied by three or more persons forming more than a single household; in other words three or more unrelated persons. Under s6(3) where a landlord is letting a property to three or more sharers he must
(1) ensure that every fixed electrical installation is inspected and tested at intervals not exceeding five years by a person qualified to undertake such inspections and testing;
(2) Obtain a certificate from the person conducting that test, specifying the results of the test; and
(3) supply that certificate to the local housing authority within 7 days of receiving
a request in writing for it from that authority
(a) If London Move Ltd are not in possession of a valid electrical inspection certificate prior to the commencement of a tenancy, we reserve the right to appoint an NICEIC Registered Engineer to produce a certificate. The landlord is liable for all charges and will be levied accordingly
(vi) The Electrical Equipment (Safety) Regulations 1994
a) To ensure that all electrical appliances and circuits are in compliance with above, a NICEIC registered engineer must conduct an annual inspection. Either the landlord or London Move Ltd can arrange the inspection, but a copy of the valid engineer's certificate must be obtained prior to the commencement of the tenancy
b) If London Move Ltd are not in possession of a valid certificate prior to the commencement of tenancy and annually thereafter, we reserve the right to appoint a NICEIC registered engineer to inspect all electrical appliances and carry out any remedial works where necessary. The landlord is liable for all charges and will be levied accordingly
(vii) Landlord Rental Taxation (section 42A Income & Corporation Taxes Act 1988 supported by the Taxation of Income from Land (Non-resident) Regulations 1995 (Finance Act 1995) the landlord hereby warrants that he shall comply with the above legislation and shall provide relevant evidence of compliance when requested by London Move Ltd or any regulatory body
GENERAL CONDITIONS
(i) In all instances there is a minimum fee payable of £500 plus VAT
(ii) The refund of fees is calculated on a pro-rata basis subject to a minimum period of six months providing the property is re-let by London Move Ltd
(iii) If a tenant or any person associated with the tenant introduced by London Move Ltd an unconditional exchange of contracts for the sale of the property, a fee of 2% plus VAT will immediately become payable to London Move Ltd
(iv) The landlord authorises London Move Ltd to erect an agency board at the property in compliance with Local Authority Rules and Regulations
(v) The landlord may terminate this agreement in writing no later than seven days before the endorsement of the tenancy agreement. A charge of £250 plus VAT is payable upon cancellation
(vi) Neither the landlord nor the tenant shall be entitled to any interest accrued on either rent or deposit held by London Move Ltd
(vii) Charges for checking in and checking out tenants, preparation of inventories, property visits, gas Inspections and electrical tests are separate to our fee structure and will be levied accordingly
(viii) Whilst the property is not let and unoccupied, the landlord is responsible for all matters relating to the property
(ix) The landlord hereby grants London Move Ltd authority to sign the tenancy agreement and legal notices on the landlord's behalf
(x) London Move Ltd reserve the right to instruct professional cleaners at the landlord's expense should the property in our opinion is deemed not clean to a professional standard prior to the commencement of the tenancy. It is essential that the landlord has ensured that the property is professionally cleaned prior to a tenants occupation of the property. All machine, appliances and heating/water systems should be in excellent working order and recently serviced
(xi) London Move Ltd can accept no responsibility in relation to their standard form tenancy agreement or other agreements in respect of "security of tenure" that may be conferred on or attached to any tenant or any other person and excludes all liability thereof. The landlord should seek advice from his solicitor in this respect
(xii) The landlord shall supply a full set of keys and all relevant access details of the property to London Move Ltd
Property Mangement Terms and Conditions
1. The Start of the Tenancy
We advise all Landlords that for tenancies, in order to proceed successfully should consist of the following elements:-
i) Referencing (including guarantors when necessary)
ii) Inventory in place (signed by tenants)
iii) Current Safety Certificates for gas and electrical items
iv) Informing utilities companies at the start and end of tenancy of new tenants details and last meter readings. We shall do the same on checking tenants out of the property
v) 'Special Arrangements Sheet' signed by Landlord and Tenants
vi) CNR number or a completed confirmation of Landlord residency form
vii) Completed Property Management Information Form
viii) Agreed Reserve fund (essential for maintenance)
ix) A full set of keys held
x) Frequent communication with the tenants and Landlord concerning the management of the property
xi) A current Tenancy Agreement in place either supplied by London Move Ltd or by Landlord
xii) Written authorisation if London Move Ltd are to sign the tenancy agreement on the landlords behalf
2. Referencing
a) Referencing of all prospective tenants and guarantors, including either a credit check or bank reference and as appropriate, references from employer, accountant, solicitor, previous Landlord and a personal reference
3. Inventory
a) It is compulsory that an inventory is in place in order to accurately measure and assess the condition of the property at the commencement and end of tenancy
b) All tenants are required to raise any comments and sign the inventory at the point of check in or return the document to our office with 14 days. If a signed inventory and any supporting documents are not in our office within the specified period, it will inferred that the tenants are in agreement with the inventory and it's content
4. The Gas Safety (Installation & Use) Regulations 1994
a) To ensure that all gas appliances are in compliance with the above, a CORGI registered engineer must conduct an annual inspection and maintain a service record. Either the landlord or London Move Ltd can arrange the inspection, but a copy of the valid engineer's certificate must be obtained prior to the commencement of the tenancy
b) If London Move Ltd are not in possession of a valid certificate prior to the commencement of tenancy and annually thereafter, we reserve the right to appoint a CORGI registered engineer to inspect all gas appliances and their installations and carry out any remedial works where necessary. The landlord is liable for all charges and will be levied accordingly
5. The Management of Houses in Multiple Occupation (England) Regulations 2006
The above act requires mandatory electrical inspections for a house in multiple occupation (HMO). This is defined as accommodation occupied by three or more persons forming more than a single household; in other words three or more unrelated persons. Under s6(3) where a landlord is letting a property to three or more sharers he must
(1) ensure that every fixed electrical installation is inspected and tested at intervals not exceeding five years by a person qualified to undertake such inspections and testing;
(2) Obtain a certificate from the person conducting that test, specifying the results of the test; and
(3) supply that certificate to the local housing authority within 7 days of receiving
a request in writing for it from that authority
(a) If London Move Ltd are not in possession of a valid electrical inspection certificate prior to the commencement of a tenancy, we reserve the right to appoint an NICEIC registered engineer to produce a certificate. The landlord is liable for all charges and will be levied accordingly
6. The Electrical Equipment (Safety) Regulations 1994
a) To ensure that all electrical appliances and circuits are in compliance with above, a NICEIC registered engineer must conduct an annual inspection. Either the landlord or London Move Ltd can arrange the inspection, but a copy of the valid engineer's certificate must be obtained prior to the commencement of the tenancy
b) If London Move Ltd are not in possession of a valid certificate prior to the commencement of tenancy and annually thereafter, we reserve the right to appoint a NICEIC registered engineer to inspect all electrical appliances and carry out any remedial works where necessary. The landlord is liable for all charges and will be levied accordingly
7. Fire & Furnishings (Fire) (Safety) Regulations 1988 (Amended 1993)
a) To ensure that the furniture and soft furnishings supplied in the property are in compliance with the above. It is worth noting that furniture manufactured prior to 1950 is not covered by the regulations because the defective materials that are now prohibited (in particular, unsafe types of foam filling) were not in use at the time. Soft furnishings that do not comply should be removed from the premises prior to the commencement of the tenancy. Accordingly, any furniture purchased for the property after the date of the agreement will also comply with regulations for the duration of the tenancy
b) London Move Ltd can arrange for soft furnishings to be checked and certified prior to the commencement of the tenancy
8. Energy Performance Certificates (EPC) 1st October 2008
a) From October 2008 it will be a legal requirement to provide an Energy Performance Certificate (EPC) valid for ten years to all tenants in England and Wales. The landlord will need to provide an EPC prior to the commencement of any tenancy
b) If London Move Ltd are not in possession of a valid EPC prior to the commencement of a tenancy, we reserve the right to appoint an accredited Energy Assessor to produce a certificate. The landlord is liable for all charges and will be levied accordingly
9. Buildings and contents insurance
The landlord is responsible to ensure that adequate cover is in place to protect his property and contents. The relevant insurance companies must be notified of the letting, failure to do so may result in voidance of cover. Tenants will arrange additional cover for their possessions if required. London Move Ltd will not be held liable for the adequacy of any insurance cover arranged
10. Utilities
London Move Ltd requires details of the relevant utility companies whom shall be notified at the commencement and termination of tenancy. London Move Ltd will not accept liability for any disputes arising over utility bills and payments
11. Correspondence & Communication
a) Frequent contact throughout the tenancy with landlords and tenants using all available communiqué to maintain effective property management
b) Tenants receive a welcome letter introducing London Move Ltd and other helpful information including a 'Tenant Information Sheet' at the commencement of a tenancy
c) We shall endeavour to perform courtesy calls to landlord (monthly) and tenant (quarterly) with a view to establishing the progress of tenancy and identify any potential issues
d) We place a huge emphasis on communication with landlord and tenant and therefore, drastically reducing the likelihood of problems arising with the tenancy
12. Property Visits
a) We shall visit the property approximately every four months or when requested by the landlord and conduct a summary report of the general condition of the property unless prevented by the tenant from doing so. Should this be the case we shall advise you.
b) It should be understood that the report intends only to provide a superficial assessment and that our findings do not constitute a structural survey or inventory check
13. Rent Demand
a) Issue Standing Order Mandate to tenants on completion of references to meet second and subsequent rent payments (Tenants are required to cancel their own Standing Order Mandate at the end of a tenancy, we are not authorised to do this)
b) Our charges and related fees will be deducted in the first instance, from the initial rent received and then from any ensuing rent payments. Similarly, any landlord expenditure will be deducted from rents received
c) Pay ground rent, service charge and any other authorised disbursements on behalf of landlord
d) Credit landlord funds into a nominated UK bank account via BACS transfer
e) Send statement and accompanying documents to landlord per month including a detailed breakdown of income and expenditure
f) At our earliest opportunity, notify by way of written correspondence (letter or email) to landlord and tenant confirming late/outstanding rent
g) We will also attempt to contact tenant and landlord by telephone soon after the discovery of rent arrears
h) London Move Ltd, as mediator will respond to queries from landlords and tenants regarding rent and attempt to resolve any issues amicably. London Move Ltd will reserve the right to cease mediation if a dispute arises or if legal action seems imminent
14. Deposit's
a) The Deposit will be received and held by London Move Ltd as stake holders in accordance with the Tenancy Deposit Protection Scheme April 2007 within a designated client account. London Move Ltd has secured membership with TDS (The Dispute Service) who have been approved to run one of the Governments Tenancy Deposit schemes
b) Neither the landlord nor the tenant will be entitled to any interest which accrues on the deposit
15. Overseas Agents - Finance Act 1955
a) Under section 42A Income & Corporation Taxes Act 1988 supported by the Taxation of Income from Land (Non-resident) Regulations 1995 (Finance Act 1995) if the landlord is not paying tax as a non-resident, therefore residing abroad, he is liable to pay income tax in the United Kingdom from any rental income received
b) Overseas landlords need to provide a CNR number, issued by the Inland Revenue to confirm that they are responsible for their own tax payments. If multi landlords, each one must obtain a separate number
c) Without the exemption granted by the Inland Revenue, we are legally bound to deduct tax from all rental income if we believe that the Landlord's permanent residence is outside the UK. Until a declaration is signed and completed confirming principal residency in the UK, we would retain a portion of rent for payment to the Inland Revenue. Please sign the attached declaration confirming permanent residency in the UK, this must be completed by the landlord and if multi ownership, by each landlord prior to any formal instruction of London Move Ltd to proceed with the management of your property
16. Property Maintenance
a) London Move Ltd will attend to routine repairs and maintenance of the property and its contents. For this purpose, we suggest that the minimum sum of £350 is held as a reserve fund. The reserve fund amount is in keeping with current industry practice and is considered sufficient for regular maintenance work
b) The reserve fund shall be automatically topped up from the rental income if it is utilised for the purpose of payment of maintenance works, any unused reserve fund at the termination of our contract shall be re-paid to the landlord in full, unless any outstanding costs or fees are owed to London Move Ltd
c) We shall not commit contractors to any works exceeding the reserve fund and will only proceed with estimates greater than this amount on the landlord's approval and when there are sufficient funds available to pay the relevant contractor
d) Exceptions will be made in an emergency, where legally obliged to proceed or where the property is likely to suffer immediate deterioration causing the Landlord to incur further and unnecessary costs. Charge for overseeing works will be in accordance with our schedule of fees
17. Contractors
a) All sub-contractors will have public liability insurance and we able to provide on request copies of relevant qualifications and proof of continued professional development
b) All contractors will be required to sign a 'Code of Conduct' confirming they will comply with strict procedures throughout the duration of their contractual with relationship with London Move Ltd. (Copies of this document can be supplied on request)
c) Landlords reserve the right to use their own contractors providing that proof of public liability insurance can be supplied together with any other relevant documentation
18. Keys
a) Preferably we shall hold one complete set of keys at our office for the use of contactors or in an emergency. All keys in our custody are subject to a strict adherence policy
b) In the event that coded keys are misplaced whist in the custody of London Move Ltd, we shall accept responsibility for the cutting of new keys, but shall not be held liable for the change of any locks
19. Data Protection Act 1998 (Crime & Taxation)
a) All information regarding tenancies is stored on a specialised database; access limited to London Move Ltd staff only
b) We will not share or knowingly pass on landlord or tenant information for personal gain or profit unless prior consent is given in writing
c) In accordance with the above Act, personal data can be disclosed for the following purposes:-
i) Prevention or detection of crime
ii) The apprehension or prosecution of offender
iii) The assessment or collection of any tax or duty of any imposition of a similar nature
20. Renewals
a) Both landlord and tenant will be notified two months prior to the expiry of tenancy
b) London Move Ltd will negotiate new terms for renewal if relevant
c) We shall either issue a new tenancy agreement or an addendum to the original contract
21. End of Tenancies
a) In the event of termination tenancy, we shall arrange for an inventory check out
b) A copy of the check out report will be provided to landlord and tenant
c) Upon satisfactory conclusion of all formalities, we shall await the landlord's new instructions
22. Permission and Consent
The landlord confirms that:
a) Mortgagees have granted permission to let
b) If leasehold, the necessary consent has been obtained and that the lease extends beyond the term of the proposed sub letting
c) Has provided us with details of any restrictive covenants, which may affect the tenancy
23. Security of Tenure
London Move Ltd can accept no responsibility in relation to their or any other tenancy agreements in respect of "security of tenure" that may be conferred on or attached to any tenant or any other person and excludes all liability thereof. The landlord should seek advice from his solicitor in this respect
24. Legal Proceedings
London Move Ltd is not responsible for any legal measures for the recovery of rent or possession of the property. Appearances before any court or tribunal will be by special arrangement and a fee for any such arrangement will be levied at £250 plus vat per day. London Move Ltd will not accept service of legal proceedings on the landlords' behalf
25. Vacant Property
Whilst the property is unoccupied, the landlord is responsible for all matters relating to the property. London Move Ltd can manage a vacant property subject to separate negotiation and charge.
26. Financial and Tax Management
While we are not accountants or tax experts, we are able to offer advice on legal requirements for letting and taxation. Landlords have two forms of taxes that they should be particularly aware of
a) Capital Gains Tax - landlords face a risk of being exposed to Capital gains Tax, we would recommend that you take professional advice. Exemptions from Capital Gains Tax might be available to those landlords who are non resident, have let out a former home for less than three years or let out a former home when forced to work abroad
b) Income Tax - Is payable on the net income from property letting regardless of place of residence. It is the landlords responsibility to inform the Inland Revenue of letting income whether they are resident or non resident
The income that the landlord is liable to pay tax on is the gross income minus expenses incurred whilst the property is let
Allowable expenses are as follows:-
h) Loan interest
i) Costs of services included in the rent (cleaning etc)
j) Agents fees
k) Costs of repairs, redecoration and renovation
l) Accounting and legal costs
m) Ground rent and insurance
For furnished properties, the Inland Revenue will allow a deduction for wear and tear of furniture, fixtures and fittings
