Letting Terms

Definitions:

The Landlord “the sole/joint owners of the property named on the instruction form at the end of the Terms & Conditions.

The Agent “referring to the partnership trading as iPropertyuk

The Property “together with fixtures furniture appliances and effects

The Tenant “any tenant or tenants of the Property introduced by iPropertyuk

The Tenancy “the period that the Tenant remains in occupation of the property

When instructing iPropertyuk to act as Letting/Management agent the following terms and conditions are agreed to by the Landlord of the Property. 

Landlords

We understand that letting your property, especially for the first time, can be a stressful experience. With this in mind, our most important consideration is providing you with the best possible service and the right tenant for your property. We never forget that the property is your most important asset, and we can confidently assure you that by instructing us as your agent, your property will be in good hands. On tenant’s selection, this is drawn from a continually updated register, all prospective tenants are thoroughly referenced and credit checked. In some cases, we will also require a guarantor.

Landlords are reminded that they have statutory obligations to maintain their properties in good and tenantable order. If the Landlord does not have preferred contractors the Agent can advise and instruct tradesmen that have proved reliable to date. If iPropertyuk is managing the property under a Full Management agreement, the normal procedure will be for the Agent to obtain an estimate for Landlords approval.  However, to obtain a detailed estimate, it could be necessary for the tradesman to attend the property and a call-out charge may be incurred. In the event of an emergency, where the property is found to be insecure or at risk of imminent or future damage or could potentially cause harm to a tenant then the The agent is allowed to authorise the necessary work. The Agent will pay invoices for any works authorised from rents received. The Landlord must ensure that the building & contents insurance cover is adequate and that the policy covers furnished lettings. Please note that many household insurance policies do not provide such cover.

Insurance

Landlords remain responsible for Building Insurance and Contents Insurance on the furniture or fittings that they leave in the property and MUST inform their INSURANCE COMPANY that the property is going to be let. The tenants are responsible for arranging insurance on any personal effects that they take into the property. If you experience problems with your current Insurance Company we can arrange Building and Contents Insurance on your behalf with companies specialising in Policies for Landlords

Gas Safety

You are required by law to have a ‘Landlords Gas Safety Certificate’.  This is an annual inspection primarily designed to ensure that all gas appliances are safe and are not emitting carbon monoxide. This should not be confused with a service contract, as they are entirely different. iPropertyuk will not arrange the letting of your property without arranging the inspection or seeing the sight of your Gas Safety Certificate.

EPC

It is a legal requirement to have an energy performance certificate (EPC) under UK law if you are letting a property. The company will not market sales properties which do not have a valid energy performance certificate.

Smoke Alarm and Carbon Monoxide Alarms

Under The Smoke and Carbon Monoxide Alarm (England) Regulations 2015 all Landlords are required from 1 October 2015 to have at least one smoke alarm installed on every storey of their properties and a carbon monoxide alarm in any room containing a solid fuel burning appliance (e.g. a coal fire, wood-burning stove).  After that, the landlord must make sure the alarms are in working order at the start of each new tenancy.

The requirements will be enforced by local authorities who can impose a fine of up to £5,000 where a landlord fails to comply with a remedial notice.

The Electric Equipment (Safety) / Plugs & Sockets (Safety) Regulations 1994

For general let properties there is no current obligation to obtain an electrical certificate for wiring, appliances or plugs and sockets.

*(However Landlords offering a property to three or more tenants all living within the property at the same time should refer to their Local Authority Environmental Health Officer, who will advise them of the more stringent electrical and fire safety regulation required).

Building Regulations – Part ‘P’ Electrical Safety In Dwellings

Although an electrical certificate is not required for general let property*, The Landlord and Tenant Act 1985, does infer on landlords, a responsibility to take reasonable steps to make sure they let their property in a safe condition, and to maintain any defects promptly.

Furthermore, since 2005, all domestic electrical installation works or any electrical repairs or maintenance must be carried out by a Government ‘Approved’ contractor. i.e. a registered electrical contractor.

It is also recommended that all portable electrical appliances be tested before each tenancy. This called a P.A.T. test and can quickly be carried out.

 

Inventory/Check-In

We recommend that all landlords have a professional inventory for their tenancy and where necessary a Check-In. iPropertyuk uses an independent inventory company and will book this on request.

Inventory charge: £150-£240 inc VAT dependant on the number of bedrooms and/or size of the property and outbuildings. Please ask for further details.

All checkouts are paid for by the landlords and the cost of this is either paid in advance or deducted from last month’s rent.

PLEASE NOTE:

IF YOU DECIDE TO PROCEED WITH LETTING YOUR PROPERTY WITHOUT HAVING AN INVENTORY,  THEN YOU MAY NOT BE ABLE TO MAKE A CLAIM ON THE DEPOSIT FOR ANY DAMAGES UPON THE TENANT VACATING. THIS ALSO INCLUDES MY DEPOSIT AND OUR RENT GUARANTEE INSURANCE COMPANY’S AS THEY REQUIRE A PROOF OF INVENTORY TO PROCESS ANY CLAIMS AGAINST THE DAMAGE.

Keys

We ask that you supply enough keys for all tenants plus an additional set when we are instructed to manage the property on your behalf.

Deposit

At iPropertyuk, we take a 5 weeks dilapidation deposit unless negotiated otherwise.  We are happy to register this for you under MyDeposit Schemes. If you wish to register the deposit monies yourself you must supply iPropertyuk with your landlord registration number before the contracts being drawn up as this information needs to be added.

Renewing the tenancy

During month 10 iPropertyuk will write to you and the tenant asking for your and their intentions.  At this time, if you wish to extend, we will assess the current market trends.  Once the renewal has been agreed, contracts will be drawn up and sent out to all parties for signature and return. Renewal fee applies.

Tax Self – Assessment                                

All tax that is due from rental income must be declared to the Inland Revenue even if the landlord is resident in the U.K. or overseas. (Landlords responsibility)

Overseas Residents

When letting property and collecting rents for non-UK resident landlords (NRL) i.e. landlords living overseas, the Agent is obliged by the Income Tax Act 2007 and the Taxation of Income from Land (Non-Residents) Regulations 1995 to deduct tax (at the basic tax rate) to cover any tax liability unless the Landlord has been authorised in writing by HM Revenue and Customs (HMRC) to receive rent gross.  In this situation, the Agent also requests that the Landlord appoints an accountant or reserves to the Agent the right to employ a suitably qualified accountant to manage correspondence with the Inland Revenue.  A standard annual charge will be made for this work and the Agent may charge reasonable administration expenses for further work requested by the Landlord, the Landlord’s accountant or the HMRC in connection with such tax liabilities.  In many cases, a landlord’s tax liability is minimal when all allowable costs are deducted. 

 

Anti-Money Laundering

As with all Estate Agents, iPropertyuk is subject to the Money Laundering Regulations 2017. This means that we have to obtain and hold identification and proof of address for all customers. Additionally, we are also required to establish whether there are any beneficial owners on whose behalf the transaction or activity is taking place, hence, we would request you to identify anyone who you would consider to be a beneficial owner. Where appropriate, the source or destination of funds may also be requested. Without this information, we will be unable to proceed with any work on your behalf.

Below is a list of acceptable identity documents. We require sight of all original or certified documents. Subject to your circumstances, iPropertyuk may liaise with you for further/other documentation.

Individual identity documents

iPropertyuk requires one document from List A and one document from List B.

LIST A	LIST B
CURRENT SIGNED PASSPORT VALID UK DRIVING LICENCE EEA MEMBER STATE IDENTITY CARD	UK/EU/EEA Drivers Licence (if UK Drivers Licence not used as ID) Must be valid, not expired. Photo only. Full or provisional.

Bank, Building Society or Credit Union Statement
Dated with 3 months. Must include account number and show recent activity. No general correspondence.

Credit Card Statement
Dated within 3 months. Must include account number and show recent activity. No general correspondence.

UK, EU, EEA Mortgage statement
Dated within 12 months. Must show account number. No general correspondence.

Utility Bill
Dated within 6 months E.g. Gas, electricity, water. Must show address for service and/or account number. No general correspondence.

Telephone Bill
Dated within 6 months E.g. Landline or mobile pay monthly (excluding pay as you go). Must show address for service and/or account number. No general correspondence.

Council Tax
Dated within 12 months. Must show address for service and/or account number. No general correspondence.

Tenancy Agreement
Dated with 12 months. Must state full name and full property address. Issued by local council, housing association, solicitor or reputable letting agent.

Benefits Entitlement Letter
Dated within 12 months. Issued by DWP or Jobcentre plus. Must confirm benefit payable at time of issue. E.g. Pension, disability, single parent, housing etc.

HMRC Tax Notification
Dated with 6 months. Must state national insurance number and tax calculation. No general correspondence.

Home or Motor Insurance Certificate
Dated within 12 months. Must state insured address or registered address for vehicle and policy number. No general correspondence.

UK solicitors letter confirming house purchase/land registration
Dated with 3 months. Must state full name of new proprietor and full property address.

NHS Medical Card or letter from GP confirming registration
Dated within 3 months. Must state the individual’s date of birth and NHS number. No general correspondence.

Official confirmation of Electoral Register entry or official poll card
Dated within 12 months. Must state full name and full address. No general correspondence.

Police Registration Certificate
Dated within 12 months. Must state the full residential address of the individual.

 

Client Money Protection

 iProperyuk is a member of the Client Money Protection provided by CMP.

What is a Client Money Protection scheme?

It is a legal requirement for letting agents join a Client Money Protection Scheme for the benefit of their clients, typically tenants and landlords, to safeguard money they hold on their clients’ behalf. If the owners of the business steal or misappropriate any of this money there is a route of redress against the letting agent by contacting the Scheme and claiming against the Scheme. If a genuine claim is accepted by the Scheme, the Scheme will recompense the landlord or tenant and seek recovery from the letting agent or its owners.

A Client Money Protection scheme does not act on behalf of the letting agent. It is an independent membership body that provides the protection of client money whilst held by its members and the Scheme insures its liability for the payment of any claims

OUR SERVICES:

LET ONLY SERVICE (6%)

The most difficult and time-consuming part of being a landlord is finding a tenant and making sure everything is in place practically and legally, to cover both you and them. Our Let Only service takes care of all that detail on your behalf, leaving you to manage your tenant once they have moved in.

What does Let only service include?

This is our most cost-effective option, as long as you have the time to be a hands-on landlord once your tenant is living in the property. They will contact you directly with any questions while they’re there and it will be your responsibility to respond promptly. A summary of our Let Only service:

• Preparation for letting with advice and guidance on legal requirements;
• Marketing on the major marketing portals, our bespoke website and social media;
• Viewings with potential tenants, always conducted by us;
• Full tenant reference checks;
• Pre-tenancy checks before move-in;
• Move-in process, rent and deposit collection, property inventory, utility supplier updates.

If you think the Let Only service is the option for you, please don’t hesitate to contact us to discuss it in more detail. It’s important to know exactly how much of the tenancy will be your responsibility and how much WE will manage for you.

What does the Let Only service cost?

We charge a one-off fee of 6% of one-year gross rent to include the tenant application and set up costs. This would be payable each time we secure a new tenant for you.

For more information, or to discuss the Let Only service in more detail, please contact us.

Fully Managed Service (10%)

This is our fully inclusive service, which includes: marketing the property; carrying out viewings; and the introduction and vetting of a prospective tenant. This proving satisfactory, we will then go ahead and prepare the tenancy agreement and other associated legal documentation.

The tenant will then be checked into the property. During the tenancy, we carry out periodic inspection visits. Should these bring to light any maintenance issues, we will (within the confines of our Management Agreement) recommend, oversee and account for any necessary repairs.

Collecting and processing rental payments is also part of the service. This will be credited automatically to the Landlord’s nominated bank account. Towards the end of the tenancy, we will liaise with the tenant, and renew the tenancy agreement or arrange to check them out as applicable. Should the tenant leave the property after the lease has expired, we will find another tenant free of charge (some fees may apply)