LETTING YOUR PROPERTY
Renting your property may be a necessity or an attractive commercial proposition, either way professional advice is always essential.
Barnett Richards specialises in the Letting and Management of residential property and can offer the sound professional advice you need. We take pride in our careful selection of Tenants and have links with major companies within the United Kingdom and have a close working relationship with the local community including: London Borough of Redbridge and Epping County Council, ensuring efficient and professional referencing of all tenants. Jeff Barnett insists that all staff continue to follow his father's policy. “Never accept a tenant that you would not
want to live in your home”
It is simple but strict rules like this that set us apart from all other agents.
If you are moving or going abroad for a period, letting your home can provide a rental income to cover or subsidise your mortgage and other outgoings whilst you still benefit from capital appreciation in the value of your property. Renting your property is your best protection from
inflation. We presently have a large demand for all types of property throughout the East London and Essex area.
Being ‘HOMELET’ agents we are able to offer the following services: -
➢ Guaranteed rent schemes
➢ Full legal cover
➢ Buildings and contents insurance
Property Licencing is mandatory in most circumstances. We can assist with the application and
processing for a fee of £199 Plus VAT.
The following brochure outlines our Terms and Conditions.
LEASEHOLD PROPERTY: Prior to letting Leasehold premises one
should ensure that the lease permits a sub-let and that written consent or a license is obtained
If a property is subject to a mortgage we advise you to obtain
permission to sub-let from the mortgagees. They will usually want sight of the contract to be used and we will of course provide copies of the Assured Shorthold Tenancy Agreement Contract and Notices to Quit.
We strongly advise that you contact your broker and/or your Insurers
and notify them of your intention to let the premises as most household policies do not cover furnished Lets.
Barnett Richards offer assistance for both building and contents cover, additionally there are products covering legal assistance and rent.
OVERSEAS LANDLORDS – Under the Finance Act 1995 landlords must apply for an exemption certificate to be issued to the agent permitting rent to be paid to the landlord without deduction for tax. Only the landlord can make the application which, if granted, will be issued
directly to Barnett Richards Estate Agents. Application forms may be obtained from Barnett Richards upon request.
Until an exemption certificate is received, Barnett Richards Estate Agents are legally obliged to withhold tax at the basic rate from the net rental income. Where Barnett Richards Estate Agents are not instructed to process rent payments landlords have duty of care to advise their tenants to make this deduction. For further information, telephone the Inland Revenue, financial intermediaries and claims office.
We strongly advise that you appoint an accountant/tax advisor regarding
your tax liability.
(Stamp Act 1891 & Finance Act 1999)
The £5,000 threshold applies to tenancies executed after 28 March 2000. The Stamp Act 1891 requires that stamp duty is payable on all tenancy agreements, leases and conveyances. Such documents need to be stamped if they are to be produced and legally accepted by a court. The
finance Act 1999 introduced new rates of stamp duty and new measures that may affect how stamp duty is collected and enforced. The standard rate of stamp duty for short tenancies and
leases (i.e. up to and including 7 years) is 1% of the total rent payable under the agreement, subject to a £5 minimum duty, and rounded up to the nearest multiple of £5. However, the following types of tenancy documents are excluded from the 1% rate (i.e. they only attract the minimum £5 stamp duty):
❖ Tenancies of furnished property (i.e. a flat or a house) let for less than one year;
❖ The Counterpart (provided that the counterpart copy of the agreement is signed by the tenant
❖ The Duplicate copy (provided that there is evidence that duty has been paid on the other
❖ No stamp duty will be payable if all the following conditions apply:
❖ The agreement is for less than 7 years (or of indefinite term i.e. periodic)
❖ The average annual rent, or total rent of the period, if under a year, is £5000 or less, and
❖ The premium is £60,000 or less (provided that the document contains a certificate of value).
Legally, all documents should be presented for stamping and the duty paid within 30 days of execution.
There is a fixed duty of £5 on a furnished letting of a house or apartment that is let for less than one year if the rent payable in that period is more than £5000 (for this reason, residential lettings are often agreed for a term of ‘one year less one day’). If the rent is £5000 or less, no stamp duty is due. If the term is between one year and seven years, then stamp duty becomes payable at the standard short tenancy rate i.e. 1%).
No responsibility is accepted by Barnett Richards in respect of any loss and/or damage caused by any defect in the domestic appliances. It is your responsibility to ensure a PAT test is made on all appliances prior to the property being let and that this is repeated annually. However, we are able to arrange for this to be carried out on your behalf.
GAS APPLIANCES AND BOILERS
Must be covered by a current certificate issued by a Gas Safe registered company and renewed annually. Failure to comply is a criminal offence.
Landlords should ensure that the electrical installation (fixed wiring, etc) is safe to use. The Landlord and Tenant Act 1985 require Landlords to ensure the electrical installation is safe when the tenancy begins, and that it is maintained in a safe condition throughout that tenancy. Failure to comply is a criminal offence.
If Landlords provide any electrical appliances (cookers, kettles, toasters, washing machines,
immersion heaters, etc) as part of the tenancy, the Electrical Equipment (Safety) Regulations
1994 require them to ensure the appliances are safe to use when first supplied. Each time the
property is re-let, it will be classed as supplying to that tenant for the first time.
SAFETY SOFT FURNISHINGS
Must comply with fire safety regulations. Failure to comply is a criminal offence.
Barnett Richards will not be held responsible for collecting and forwarding mail. We advise that a postal divert is set up with the Post Office. Barnett Richards will hold any stray letters when brought to our attention for a reasonable period of time i.e. up to one month.
Barnett Richards will inspect the property and advise of a current market rent. The rent quoted by us is exclusive of domestic services, for which you are not responsible (i.e. telephone, electricity, gas).
All advertisements local, national, internet and detail sheets are
included in our fees unless otherwise stated.
Employers, bank references, and previous landlord references (if
applicable) will be taken up on all applicants and are made available for inspection before an contracts are finalised except in cases where tenants claim Housing Benefit. Prior to referencing a
meeting between the Landlord and Tenant(s) can be arranged if sodesired to ensure you are completely satisfied with the proposed occupants.
We recommend a full inventory of furniture and effects should be
prepared before a tenant takes occupation, copies are presented and signed by all parties on the day of occupation and on the departure of tenants upon termination of the tenancy agreement.
Where loss of, or damage to, furnishings and/or effects or excessive deterioration has taken placethe cost of repair, replacement or cleaning can be deducted from the deposit monies. Barnett
Richards will not be held responsible for testing electrical equipment or appliances. Although we will compile a brief summary of furniture and effects, a full inventory can be arranged for a
Only you, the Landlord, may sign off the gas, electricity and telephone
prior to the tenants taking occupation. However, we will usually assist ingoing tenants with the transfer of the services.
These will be prepared in accordance with the Housing Act 1988
and Assured Shorthold Tenancy Agreement will always be used.
DEPOSIT AND RENT
Prior to the tenants taking up occupation we will collect one months rent in advance and one month rent as a deposit, unless otherwise agreed with the Landlord. On a let only/non management basis the Agents responsibilities cease when the tenants have the keys at the start of
the tenancy. Rents are sent to the landlord, or deposited at a pre-arranged bank account usually within five days after the rent cheque or standing order has cleared. We do not hold damage/dilapidation deposit for the term of the contract.
As part of the Housing Act 2004 the Government has introduced Tenancy Deposit Protection for all assured shorthold tenancies (ASTs) in England and Wales where a deposit is taken. The legislation ensures that tenants, who have paid a deposit to a landlord or letting agent and are entitled to receive all or part of it back at the end of that tenancy, actually do so. The legislation covers virtually all new AST contracts through which private landlords let property in England and Wales. However, the following will not need to be registered with a tenancy deposit
● Resident landlords (those living in the property), landlords of properties with rent of over 25,000 a year, company lets, student accommodation let directly by universities or colleges.
Deposits taken before 6 April 2007 do not need to be protected by a scheme such as The DPS. However, as an existing tenancy is renewed and a landlord agrees a new fixed-term tenancy, the initial deposit taken must then be lodged with a tenancy deposit protection scheme. Barnett Richards will organize the Security of the deposit on your behalf for a small fee.
Whilst every effort will be made by Barnett Richards to collect rent and ensure that the tenancy agreements are adhered to, the Landlord will be responsible to initiate and settle the cost of any legal action recommended by Barnett Richards should this prove necessary. We would recommend that you instruct your own Solicitor in all instances. We have a well-proven system of vetting tenants and an excellent track record, which greatly reduces any risk of such problems.
Where instructed we will pay any current out goings such as insurance premiums,service/maintenance charges, ground rent etc., and will endeavour to query any obvious discrepancies, although it must be understood we will pay without question such demands and accounts which appear in order should sufficient funds be available.
REPAIRS REPLACEMENTS AND INSPECTIONS:
We will investigate any request for repairs or maintenance brought to our
attention by the tenant and will arrange for the work to be carried out, in any emergency or in any case where repairs are less than £500.00. In all other cases estimates will be obtained and made available for approval.
Periodic inspections will be carried out on the premises whilst under our
Management. However it should be appreciated that any such inspection can only extend to apparent and obvious defects and would not amount in any way to a structural survey of the property. We cannot accept responsibility for hidden un-detected defects. During periods of un-occupation Barnett Richards will, where instructed continue to manage the property for a fee to be agreed separately. During these periods of un-occupation we may find it necessary to employ a gardener and/or domestic cleaner at the Landlord’s expense. The Landlord agrees to indemnify Barnett Richards, as your agents, against any reasonable charges imposed or incurred whilst on your behalf in the pursuit of our normal duties.
We promise to try to be less expensive than anyother agent without
compromising on our service.
On Barnett Richards finding a suitable tenant(s) and upon commencement of the tenancy agreement, our commission will be charged as follows:-
Introduction of a new tenant:- 10% of the contract rent., payable in advance for the term and chargeable annually, as long as the tenants introduced by us occupy the property.
Introduction & Management Service:- We will deduct 15% from the monthly rent received.
Selling Fee:- Should the tenant agree to purchase the property at any time in the future, we will reduce our normal selling fee of 3% to 1% provided that the account is settled within 10 days of legal completion.
All fees are subject to VAT at the current rate.
In some instances we are able to offer a reduced, fixed introduction and management fee. This will be discussed at the time of our initial market appraisal and prior to the signing of the
marketing agreement. If you are unable to attend the market appraisal or our offices,
In the event of the tenants introduced by Barnett Richards, extending or renewing the tenancy agreement or purchasing the property, by way of negotiation with the Landlord, his agent or Barnett Richards, commission is payable as laid out above.
a) All fees are payable at the commencement of the term which will be deducted from monies received from the tenant prior to the occupation of the said premises. Any difference owing to the Landlord will be settled within 5 days and any difference due from the Landlord will
be deducted from subsequent rent payments.
b) Fees are not reimbursed if the tenant(s) vacate the property before the end of the term, and the agent cannot be held responsible. Under Management Letting Contract, the unused portion of the management charge is reimbursed.