Fees and terms and condition | Homefinders

Fees and terms and condition

TERMS AND CONDITIONS
RESIDENTIAL LETTINGS AND MANAGEMENT

PART 1   Commission and Fees Summary

1.1 Letting: 8% of rent reserved plus VAT

1.2 Management Service (includes the letting fee)

1.2.1    Value : 10% plus VAT of the total rent reserved (standard management with 1 inspections a year, free rent guarantee for the first six months only)
1.2.2    Premium : 12% plus VAT of the total rent reserved (free rent guarantee  for the first 6 12 months with free legal expenses cover,  free emergency cover* for the first year, 4 hours of free maintenance every year, 2  inspections a year)
1.2.3    Premium plus:15% plus VAT of the total Service reserved (includes  free emergency cover*, free rent guarantee with legal  expenses cover, 6 hours of free maintenance every year, 3  inspections a year, On Time rent payment)
*subject to separate terms and condition, operated by our sister company Scotchwell

1.3 Short lets: 22% of the total rent plus VAT. (any lets less than 6 months)

 

PART 2   Payment terms

2.1 Extension/ renewal of tenancy is calculated as per above clauses 1.1, 1.2.1, 1.2.2, 1.2.3 and 1.3 whether negotiated by us or not.

2.2 Our commission becomes payable for payment when a tenant introduced to you by Homefinders enters into occupation of the property or any other property owned by You, whether negotiated by us or not, and is subject to the following terms;

2.3 Our fee is calculated as a percentage (see 1.1, 1.2.1, 1.2.2, 1.2.3, 1.3) of the total rent reserved under the terms of the tenancy Agreement and is payable in full at the commencement of the Tenancy for Letting (1.1) and on a monthly basis for Management Services (1.2.1, 1.2.2, 1.2.3, 1.3) until the end of tenancy.

2.4 If we are not employed to collect the rent during the tenancy we will collect our fee from initial sums paid to us by the Tenant. When a tenancy is being extended or renewed, whether by us or not, we will send you an invoice for settlement within 7 days.

2.5 Our fees are payable for the whole length of the time that the Tenant remains in occupation of the property, whether or not we deal with the renewal of any tenancy agreement.

2.6 If we initially manage the property but stop managing for any reason then the full letting fee is payable while the tenant remains in the property whether we deal with renewals or not. In addition to the letting fee, all the discounted or free offers will be payable at full costs during the year when free or discounted offers taken up. Full charges of all the expenses are added at the end of this terms and condition.

2.7 Abortive Tenancies: Should you withdraw from any proposed tenancy we will charge an administration fee of £250.00, provided that everything agreed with acceptable references or Insurance guarantee.

 

Part 3 Pre Instruction Requirements

We can only accept your instructions on the basis that the following conditions have been met.

3.1       Fire & Furnishings regulations: You must ensure that all furnishings supplied conform to the Furniture and Furnishing (Fire) (Safety) Regulations 1988 and you will indemnify us should a breach of these regulations occur.

3.2       Gas Regulations: The landlord must ensure that the gas supply and all gas appliances and fittings provided are safe and properly serviced and comply with the Gas Safety (Installation and Use) Regulations 1994. A Gas Certificate will be required before the commencement of the Tenancy. A properly qualified engineer should then carry out a safety check on a yearly basis thereafter. If we do not have the gas safety certificate a day before the tenancy start day we will get it done and charge you. Our gas engineers charge £60. You will indemnity us should a breach of these regulations occur during the tenancy.

3.3       Electrical Equipment and Wiring: You must ensure that all electrical equipment provided and any wiring or plugs or sockets in the property are safe and properly serviced. Portable equipment must comply with the Electrical Equipment (Safety) Regulations 1994 and a Safety check should then be carried out on a yearly basis thereafter by a properly qualified engineer. You will indemnify us should a breach of these regulations occur during the tenancy

3.4       House in Multiple Occupations (HMO): With the new regulations any property that is occupied by unrelated individuals is considered HMO. HMO properties must comply with HMO regulations. Some of those HMO’s will need to be licensed. If the property is not licensed where it should have been and/or it does not comply with regulations you will indemnify us against any breach.

3.5       Tenancy Deposit Scheme: From April 2007 all tenancy deposits must be protected, if it is not protected you will be liable to pay three times the deposit to the tenant and will not be able to start any court action to evict the tenant should you need to do so. If we are managing the property we protect the deposit through The Dispute Services Ltd. If we are not managing, you can use Tenancy Deposit Solutions Ltd – www.mydeposits.co.uk, or Deposit Protection Service www.depositprotectionservice.com . It is also vitally important to have a proper schedule of conditions and inventory done.

3.6       Energy Performance Certificate:  Since October 2008 every property that is on the market has to have Energy Performance Certificate (EPC). It will cost you £65 and will be valid for 10 years. We will get this done if you authorise us or if it is not ready before the tenant moves in.

3.7       Proof of ownership: As a regulated agency by NAEA and ARLA we will require a proof of ownership before we can sign up a tenancy for your property.

3.8       Mortgage: I/We am/are aware that if the Property is mortgaged it is my responsibility to notify the mortgagee of my/our intention to let.

3.9       Leasehold properties: I/We have been advised that if I/we hold a lease to the Property, then the freeholders consent may be required under the terms of the lease.

3.10     Insurance: I/We have been advised that I/We must insure the Property and any contents belonging to me/us and notify the insurers of the intended letting.

 

PART 4     Descriptions of Services

4.1 Letting Service Included in our letting service are the following. We will:

4.1.1    Carry out an initial inspection of the property and provide our opinion of   expected         rental value, furnishings and other pertinent matters.

4.1.2    Advertise the property as necessary or appropriate.

4.1.3    Arrange appointments for prospective tenants to view the property and accompany them where necessary or advisable.

4.1.4    Introduce prospective tenants.

4.1.5    Take up references on prospective tenants for your approval if they are not                  accepted on rent guarantee.

4.1.6    Instruct properly qualified engineers to carry out gas and electrical safety checks when requested by you or where you have failed to do so, the cost to be debited to your account.

4.1.7    Prepare, execute (if necessary) and complete the tenancy agreement together with appropriate legal notices.

4.1.8    Collect the first months rent and Deposit from the Tenant. Deposit is then transferred to the landlord and it is landlords responsibility to protect the deposit according to new rules starting from 6th April 2007. (Landlord must provide a proof of membership of a deposit protection scheme before we hand over the deposit)

4.1.9    Extend or renew tenancies and execute any Extension of Tenancy Agreement on your behalf.

4.1.10 Instruct professional inventory agent. If you do not want us to do the inventory, please specify at the end of this form.

4.2    Management Service

4.2.1    In addition to the letting service described above in 4.1 we will:

4.2.2    Deposit; Hold the Deposit as stakeholder during the tenancy. There will be one off £25 (plus VAT) charge to hold the deposit under the Tenancy Deposit Protection.

            If tenancy deposit is paid by any local authority, their deposit will be held by us and can only be used for tenant damages. It cannot be used for rent arrears (except in Waltham Forest) or fair wear and tear. Any deposit taken by us will be protected by The Dispute Services. If at the end of tenancy a dispute arises and it cannot be resolved by negotiation, it will be decided by the Dispute Services. There will be £45 charge for getting all the paperwork ready and representing you in this instance.

4.2.3    Rent Collection; Demand and make reasonable efforts to collect the rent from the Tenant, short of    issuing court proceedings. Tenant is contractually responsible for all rental payments. While we cannot guarantee rental payments, we will use our standard Rent Chase procedure to attempt to recover any outstanding rent. Full details of our standard procedure are available on request from Homefinders at any time.

4.2.4    Rent Payments; Transfer the rent, net of disbursements, directly to a nominated bank account. Payments are made every Monday for the rent collected previous week as cleared funds and it takes 2/3 working days to reach your account. When payments are made we send a text message and email with statement attached.

            We upload all your statements to a secure site within our website where you can view all past and present statements and print them whenever you require. You can also view all the details we have on yourself, your property and your tenant.

4.2.5    Tenancy Agreement; we will use our own standard tenancy agreement unless otherwise instructed. If you want to add any special clauses we will do it once instructed in writing. Homefinders will be authorized to sign the tenancy agreements and notices on behalf of the landlord.

4.2.6    Inventories; Arrange for the preparation of an inventory and schedule of conditions by an independent professional inventory clerk. It is your responsibility to satisfy yourself as to the accuracy of the inventory. Homefinders cannot accept responsibility for any claim arising out of an omission or error on the part of the inventory clerk. Inventory charges are shown in the additional services section below.

4.2.7    Outgoing; Pay your regular outgoing for the property out of available funds held by us including bills for ground rent, service charge, water charges and maintenance charges but to exclude mortgage payments, buildings insurance and contents insurance (Except if building insurance and contents insurance is done through us).
You must instruct the relevant authorities to forward the bills to us for payment and although we will do our best to query any obvious discrepancies it must be understood that we are entitled to accept and pay without question demands and accounts that appear to be in order. All payments made by us will incur an admin fee of 10% plus VAT.

4.2.8    Termination of agreement; this agreement may be terminated either when the property is vacated by the tenant we found or with one months notice then the landlord will be liable to pay full letting fee and the full costs of  any free offers for that year.

4.2.9    Repairs; Deal with day to day repair/maintenance matters. We will always endeavor to inform you of the repair/maintenance issues by text, email or post and get your approval before we do any work, except in an emergency we may go ahead and do the work if we cannot contact you. Any work organized and paid by us will incur a 10% plus VAT charge of the net cost. In matters of urgency where there is no heating, hot water etc if we cannot contact you for a sensible amount of time, we retain the right to send someone to repair it.

4.2.10  Property Visits; Carry out visits to the property according to the management service taken up. These visits will include non-expert investigation of apparent damage or defects that are noticed or brought to our attention by the Tenants. It should be appreciated that these visits can only extend to apparent and obvious defects and would not in any way amount to a structural survey of the property.

4.2.11  Check In/Out; Arrange for a professional inventory clerk or Property manager to prepare a schedule of dilapidation  at the end of the Tenancy. We will negotiate and agree dilapidation with yourself and the tenant as Stakeholder and make appropriate deductions from the Tenants Deposit once it is agreed. Check in is included in the management fee and check out is paid by the tenant.

4.2.12  Courts and Tribunals; Appearances before The Rent Officer, Rent Assessment Committee, the County Court or any other court or tribunal or attending your solicitor will be charged £75 per attendance. All Section 21 evictions are charged at a fixed price of £500 including all court expenses and court appearances if necessary. We will only do the Court papers with Section 8 evictions, and the cost will be £150.

4.2.13  Housing Benefit: In the event that the Tenant is a Housing Benefit claimant or commences claiming benefit during the course of the tenancy, the Landlord confirms that he will immediately repay any monies paid to him by Homefinders that are subsequently reclaimed by the relevant Local Authority or other benefit agency. The Landlord will indemnify Homefinders in respect of any matter arising out of any such repayment claim. Any tenants through local authority schemes like rent deposit schemes will be Housing benefit tenants. Our agreement with Local Authorities is that we will manage the properties to their standard. Therefore if you want to manage the property yourself for any reason our charges will stay the same.

4.2.15 Handyman Service: you can use our handyman free of charge 4 hours for Premium and 6 hours for Premium plus  a year. Any use of pre-let free handyman service counts towards the first years free service. You will have to pay for the material bought, and the time starts from the time handyman arrives at the property and includes any trip to buy material. It has to be used min 2 hourly blocks. If you do not use it on the first year then it will roll over to the second year, but then it must be used on the second year. It will not roll over to 3rd year

4.2.16 Rent Guarantee and Legal Expenses*: We offer rent guarantee and legal expenses cover to all our landlords free of charge from 6 months upwards. This is subject to tenant status. If tenant is not accepted for the cover, we will not accept the tenant unless you authorize us otherwise. If rent guarantee is taken and we have to make a claim, we will make and manage the claim on your behalf. There will be £125 fee to make and manage the claims and if necessary to appear at the court         
            *subject to separate terms and condition
4.2.17  Emergency cover for plumbing, drainage and electrical work*: We offer Scotchwell emergency cover for plumbing drainage and electrical works.
           *subject to separate terms and condition

 

PART 5  General Information

5.1      Tenancy Agreements; Unless we receive written instructions to the contrary we will use our standard form of Tenancy Agreement. Draft copies are available on request for inspection by you and your building society or solicitor.

5.2      Refund of Fees; If a tenancy is terminated by operation of a break clause, we will refund to you the appropriate proportion of the fees on a proportion basis. If a tenancy is terminated by mutual agreement between you and the tenant or through default by the Tenant, then none of the fees will be refunded. Our part of the fee should be deducted from tenant’s deposit.

5.3      Instruction of Solicitors; You will be advised of any rent arrears or breaches of the tenancy, which come to our attention. However, if it is necessary for a solicitor to take action, you will be responsible for instruction of your own solicitor and for all fees involved.

5.4      Overseas Landlords and Tax; If you are resident overseas or taxed as such we require you to complete Inland Revenue form NRL1 - "Application to Receive U.K. Rental with No Tax Deducted". The form is available from Homefinders and will be forwarded to The Inland Revenue upon completion. If The Inland Revenue refuse or fail to issue us with an exemption certificate, we will be legally obliged to deduct 25% of the net rental income and remit the same to The Inland Revenue. You agree to indemnify Homefinders against all payment of tax, interest thereon and penalties levied in connection with your tax affairs.

5.5      Interest; No interest will accrue for your benefit on deposits, retention, tax reserves, rents or any other sum held by us on your behalf.

5.6      Indemnity; You will agree to indemnify us against all costs, claims and expenses properly incurred by us on your behalf.

5.7      Void Periods; Our management service does not include provision of any services or supervision of the property when it is not let.

 

Part 6      Definitions

In these terms and conditions the following expressions shall have the following meanings:-

  • "Homefinders" is the trading name for Sun Estate Property Management Ltd) and its successors in title or assigns.
  • "You" or "the Landlord"- The Landlord named in the instruction letter or his successors in title or assigns.
  • "The Property"- The property specified in the instruction letter or any part thereof.
  • "The Tenant"- Any Tenant or Tenants of the Property from time to time introduced by Homefinders or if the Tenant is more than one person then this expression shall be read and construed accordingly and will include any person who was within this definition who remains in occupation of the Property and if appropriate any employee of the Tenant or any person residing in or occupying the Property as licensee of the Tenant.    
  • "Tenancy"- the entire period that the Tenant remains in occupation of the Property including the Initial Letting Period and any extension, period of holding over, or new tenancy.
  • "Initial Letting Period"- shall mean the full length of the term of any tenancy entered into and for the purpose of calculation of fees due hereunder shall not take into account any termination clause or right to terminate any tenancy (whether or not the same is exercised) or any earlier forfeiture surrender termination or repudiation of same save as expressly otherwise agreed.
  • "Rent" or "Rent Reserved"- shall include all rents payable during the Tenancy and any sum taken as a Premium or consideration for the grant, extension or renewal of it.  

 

 

1. I/We am/are resident / non-resident in the UK for Tax purposes.*
If you are non resident for UK Tax purposes then you will need to get exemption certificate from Inland Revenue. If you go to http://www.hmrc.gov.uk/cnr/nrl1.pdf   and make an application to to receive your rent without tax deduction. Our agent reference number is NA25812.

2. I wish to use Homefinders online (this is a secure website where you can see all your past statements, present balances and the various details about the tenancy and property)*

My user name for Homefinders Landlords Online is...........................and my password is............................

3. The service I require is Letting (8% plus VAT)

or Management:

Value (10% plus VAT) ,
Premium (12% plus VAT),
Premium Plus (15% plus VAT)

Short lets (22% plus VAT)

 

* Delete as necessary.

 

Landlord(s) Name(s) in full:

 

Landlord’s correspondence address:

 

 

 

Property Address:

 

                                                                                                                             Postcode:

I/We agree and have read the terms and conditions for Lettings and management and agree with the terms & conditions.

 

Tel (Home):

 

 

 

 

 

 

 

 

 

 

 

 

 

Tel (work):

 

 

 

 

 

 

 

 

 

 

 

 

 

Tel (Mob):

 

 

 

 

 

 

 

 

 

 

 

 

 

Email:

 

 

Bank:

 

Account name:

 

Sort code:

 

 

 

 

 

 

 

Account Number:

 

 

 

 

 

 

 

 

 

 

Signed:

Date:

If you want us to send a copy of your statements to your accountant please give us his/her email and we will copy the statements to them.

Accountant email: