TRANSFER OF RENTS
As part of the Rent Collection and Fully Managed service, the Tenant will pay the rent directly to our account, we will allow three days for this to be received to our account when it falls within a bank holiday period and weekends. Rent monies are released to you via bank transfer. Please then allow (up to) 7 days for us to transfer this money to you; however, we always endeavour to transfer monies immediately. Please note that Late Payment Charges recovered from tenants are due to D&N Property Management to cover additional administration costs. Landlords reserve the right to charge interest, to the tenant (as per the tenancy agreement), on overdue rent. We will do everything in our power to ensure a standing order is set up; however, we cannot do this on a tenant’s behalf and it is entirely their responsibility.
LANDLORD-TENANT DISPUTES
If any immediately irresolvable matters arise, court action may be required to remove your tenant, and/or recover losses. In this instance, you will be liable for all related costs. D&N Property Management is not responsible for tenants who fail to pay rent, or those tenants who breach any of the terms of the tenancy agreement.
We undertake extensive credit and reference checks to ensure that you are provided with all the relevant information for you to make a sound choice of tenant.
Unfortunately, it may be necessary to attend court to resolve an issue. If this situation arises, D&N Property Management is willing to attend court on your behalf at an additional charge of £250.00 per day (payable in advance), upon written request.
INSURANCE
Insurance on the property or rent guarantee is your responsibility.
Building Insurance
You will require buildings insurance that does cover your property for letting out. If you have a standard household policy this will be void when letting the property.
Contents Cover
Your contents are not insured unless again you do have a landlords contents policy. This is to cover your contents against fire & theft, which includes theft by tenants on leaving your property. This does not cover your tenants contents which is their responsibility to insure
If you need help and advice on insurance we can recommend an adviser for you.
Rent Guarantee
We would strongly recommend that all landlords obtain Rent Guarantee insurance but is not mandatory. D&N Property Management reserves the right to pass your details onto our preferred insurers for this type of insurance unless you choose to opt out.
INVENTORIES AND SCHEDULE OF CONDITION
The cost of providing an inventory is NOT included. D&N Property Management accepts no responsibility for the condition of the property either at the beginning, during, or end of the tenancy. D&N Property Management can arrange for a third party to perform an inventory to increase the chances of winning a deposit dispute at the end of the tenancy.
If you opt for our Fully Managed package, we will inspect the property every 4 months and provide both you and the tenant with an inspection report highlighting any issues of concern if necessary.
REPAIRS (FULLY MANAGED SERVICE ONLY)
In the case of any of these occurrences, we will act as per your instruction. Please note that if an emergency and/or urgent repair occurs (e.g. boiler breakdown), this would need to be dealt with within the Housing Act guidelines. If we cannot contact you within 24 hours via the contact methods provided, we will have no alternative but to instruct repairs and invoice you for those costs to ensure you remain within your legal obligations. If you hold relevant insurance and have submitted the policy details to us, we can (with an endorsed authority disclosure form) make a claim to the insurance company to undertake repairs on your behalf.
If we are required to attend an emergency at the property, we will charge a fee of £45.00 per visit.
TENANCY DEPOSIT PROTECTION
All deposits received by landlords and/or their agents must be sent in full to an approved deposit protection scheme. We will protect the deposit with My Deposits under our account, the cost of registration is £50 (included with the full management service).
If you require us to produce a claim upon termination of the Tenancy, we will apply reasonable charges, or we will provide you with the authority to deal with it yourself. We will provide you with a copy of our response prior to being sent to the arbitrator. We accept no responsibility if the claim is unsuccessful.
If you wish to register the deposit yourself we will require your Landlord ID, deposit registration certificate and prescribed information. If you fail to protect it within 14 days from the date of receiving it, the tenant may take legal action against you in the county court. D&N Property Management has no liability for any loss or proceedings suffered if you fail to comply.
INCORRECT INFORMATION
If the landlord provides any information which proves to be dishonest and/or incorrect and causing D&N Property Management to suffer loss or legal proceedings, the landlord agrees to reimburse and/or compensate D&N Property Management for all related costs and/or losses suffered. Statutory rights of all parties remain unaffected.
CONSENT TO LET
If you have a mortgage for the property you intend to let out (and isn’t expressly a buy-to-let mortgage), you must obtain a letter of consent from your mortgage lender. This is a standard practice and should be readily available, although you may be liable for a fee. If you fail to do this and breach the terms of the mortgage you may liable for a range of other costs and legal actions so check the terms and conditions of your mortgage carefully. Further, if the property is leasehold, it may be required to obtain consent from the leaseholder that they agree to you letting out the said property.
By signing this agreement you confirm that you have consent from all parties involved to
let the property.
LEGIONELLA RISK ASSESSMENTS
The Health & Safety Executive (HSE) amended its Approved Code of Practice to state that Landlords should obtain Legionella Risk Assessments on their properties.
More information can be found at http://www.hse.gov.uk/legionnaires/ or upon request.
RELEVANT INSURANCE
It is our policy that all our landlords hold Buildings, Contents and Public Liability insurance for each property. D&N Property Management reserves the right to pass your details onto our preferred insurers for this type of insurance and others that may be of interest to you unless you choose to opt out.
FURNITURE AND FURNISHING SAFETY REGULATIONS 1993
Any furniture provided by the landlord must comply with these regulations. Your local trading standards office can provide additional information on the regulations if you require. By signing this Agreement, you confirm that any furniture supplied is compliant with the above named Regulations.
GAS SAFETY (INSTALLATION AND USE) REGULATIONS 1998
Landlords must have all gas appliances checked annually by a qualified person, obtain records of work carried out on the appliances, and obtain a gas safety certificate (GSC). If the landlord chooses to obtain this independently, D&N Property Management will not be liable for any inaccuracies or failings resulting in loss or injury to any occupants or visitors to the property
FEES
A schedule of our fees to Landlords can be found at the beginning of this document. The set-up will be deducted from the first month’s rent along with any other fees/costs that have been incurred by D&N Property Management in arranging this tenancy, for example inventory & gas safety certificate costs.
Please note that we charge a minimum fee of £80.00 per calendar month, regardless of the rent charged or received.
If a tenant fails to pay rent our management fee will be due when the funds are received from the Tenant, Rent Guarantee insurance policy or via Deposit deductions (if the rent is received by any other way, our fee will still be due).
ELECTRICAL SAFETY REGULATIONS
The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020.
The Ministry for Housing, Communities and Local Government (MHCLG) introduced legislation for landlords in England to make it a mandatory requirement to have electrical safety checks carried out in their properties. These electrical safety checks are to be carried out at intervals of no more than 5 years by a qualified and competent person. A copy of the electrical report must be supplied to the tenant
To protect yourself, we would strongly recommend appointing an NICEIC approved contractor to; conduct a Electrical Installation Condition Report (valid for 5 years) & Portable Appliance Test (PAT) immediately; visually inspect the property every 12 months; conduct a PAT every 12 months.
COMPLETING THE TENANCY AGREEMENT
The provision of a tenancy agreement is included within our fee. If you wish to add any reasonable amendments or special clauses, D&N Property Management will provide this at a charge of £36.00 for up to 3 amendments. Any terms added by the landlord or his nominated person that are in breach of the Unfair Contract Terms Act 1977 will not be the responsibility of D&N Property Management. If additions are made, the landlord must sign a disclaimer form for the amended clauses.
TENANCY RENEWALS
D&N Property Management will automatically renew the tenancy for you unless you instruct not to do so, no less than 1 calendar month before the expiry of the current tenancy. If you signed up to a special offer, this will revert to our current rate after the original fixed term.
We charge a renewal fee of £225.00 to the landlord.
PREPARATION OF THE PROPERTY
The pre-tenancy condition of the property is wholly the landlord’s responsibility. D&N Property Management can aid in the organisation of additional services such as professional cleaning, repairs etc. A charge of 10% of the invoice (up to a maximum of £150 per invoice) for these works will be levied and deducted from the first month’s rent paid by the tenant.
TAX
D&N Property Management accept no responsibility whatsoever for paying tax of any kind
on any proceeds from rental income or sale of property. Once funds are transferred, the
landlord must then arrange for their own tax liability arrangements.
TAX OVERSEAS LANDLORDS
If you live abroad for 6 months or more per year, you’re classed as a ‘non-resident landlord’ by HM Revenue and Customs (HMRC) - even if you’re a UK resident for tax purposes. We will require you to complete Non-resident landlord: application to have UK rental income without deduction of UK tax - individuals (NRL1)
If you have not applied for this, we will deduct Tax due on your rental income which could work out more expensive than you submitting your own tax returns with allowable expenses
HMRC Link
HERE
WATER ACT 2003 AND UTILITIES
The Flood and Water Management Act 2010 allows tenants renting the property for longer than 6 months to apply for a water meter without express written consent from the landlord or agent. The landlord or tenant can change the utility accounts at the said property whenever they so wish, without prior consent from D&N Property Management. The Act also allows water suppliers to reserve the right to pursue the landlord for a tenant’s unpaid water bills if they have not been informed of a change of account holder.
EMPTY PROPERTIES
Please note that we will only inspect an empty property if we continue to receive a Management Fee. If we are not in receipt of a professional fee, we cannot render professional services.
The cost of this service will start at £35 per visit, an exact figure can be provided upon request.
TERMINATION OF CONTRACT
One months’ written notice must be given if for any reason either party, landlord or agent, should wish to terminate the contract. If the landlord is in breach of contract or fails to provide requested information, the full term’s management fee will become payable immediately and the contract will be terminated immediately. The minimum fully managed term is equal the duration of the initial tenancy agreement, unless otherwise stated.
RENT ARREARS AND PROPERTY CHARGE
Although it is our responsibility to chase rent arrears, we will not be held responsible for rent arrears under any circumstances. We may instruct a third party legal specialist to obtain the correct written notices to evict the tenant and recover losses. Fees for this will be payable by the landlord upfront and added to the debt to be repaid to the landlord by the tenant. Any service, maintenance or other charges raised by the tenant, landlord or any other party will not be the liability of D&N Property Management.
DATA PROTECTION REGULATIONS 2018
The GDPR sets out seven principles for the lawful processing of personal data. Processing includes he collection, organisation, structuring, storage, alteration, consultation, use, communication, combination, restriction, erasure or destruction of personal data. Broadly, the seven principles are:
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Lawfulness, fairness and transparency
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Purpose limitation
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Data minimisation
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Accuracy
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Storage limitation
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Integrity and confidentiality (security)
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Accountability
HMRC will ask for a list of our Landlords and Tenants on a reporting basis as and when requested and under GDPR rules we do have to report information.
MONEY LAUDERING
Money laundering offences: Under the Proceeds of Crime Act 2002 there are three principal money laundering offences.
Concealing criminal property: Criminal property is property that a person knows, or suspects, to be the proceeds of any criminal activity. It is a criminal offence to conceal, disguise, convert or transfer criminal property – clearly money laundering is included in those definitions.
Arranging: This happens when a person becomes involved in a process that they know or suspect will enable someone else to acquire, retain, use or control criminal property (where that other person also knew or suspected that the property derived from criminal activity).
Acquiring, using or possessing: It is a criminal offence for a person to acquire, use or possess any property when that person knows or suspects that the property is the proceeds of criminal activity.
Our duty under the act is to report any of the above activities we suspect.
Your duty is to declare your investment income to HMRC which can be done via your self-assessment or accountants.
We are required to keep evidence of identification for at least five years after the relationship with the customer has ended.
PROPERTY PURCHASE
In the event that the Tenant purchases the Property (or properties), it will be deemed that D&N Property Management or its partner company (HS Estate Agents) has introduced the buyer and as such a fee will be due, the fee due will be 1% (plus VAT) of the final sale price.
In the event that a Purchaser is introduced to the Property (or properties) by D&N Property Management (or its partner company HS Estate Agents), or a Purchaser has entered negotiations about the Property (or properties) with D&N Property Management (or its partner company HS Estate Agents), at any point whilst instructed, and subsequently contracts for sale of the Property (or properties) are exchanged with the Purchaser, D&N Property Management (or its partner company HS Estate Agents) will be due a fee of 1% (plus VAT) of the final sale price.
COOLING-OFF PERIOD
You have the right to cancel this agreement at any point within the first 14 days although any expenses incurred, such as purchasing an item at your request, will be chargeable.
