Letting and Management Service

Lettings Service

To undertake an inspection of your property and give an opinion of its value on the lettings market.

To use our best endeavours to find a suitable tenant and to negotiate the terms of the Tenancy.

To take up references on prospective tenants.

To prepare the tenancy agreement for signature by landlord and tenant.

Upon receipt of the first payment of rent, the deposit and signed tenancy agreement to arrange for possession to be given to the tenant.

To hold the deposit on the terms laid down in the tenancy agreement.

To arrange for an inventory to be taken of the property at the start of the tenancy.

To send rent demands on the required dates as specified in the tenancy agreement and to use all reasonable endeavours to collect the rent.

To remit rents to your nominated bank account together with rent statements after deducting commission or other charges as may be due.

To notify the utility services (gas, electricity, water, council tax) of the change of subscriber at the commencement and termination of the tenancy.

To arrange for an inventory to be taken at the end of the tenancy.

Management Service

This begins with the start of the tenancy and ends with the termination of the tenancy.

We will deal with day to day general management and usual proper requests from the tenant and investigate any issues brought to our attention or highlighted during our property visits.

We will pay out of funds on the landlord’s behalf all ground rents, insurance premiums, service charges or any other outgoings not payable by the tenant providing the relevant bodies send their accounts to us for payment. You should notify them to send their accounts to us for payment.

We will arrange for independent contractors to carry out minor repairs if called upon by the landlord or tenant and for which the landlord is responsible up to £500 without obtaining prior competitive estimates.

We will seek estimates for any necessary repairs likely to cost more than £500 (except in the case of an emergency) and submit them to the landlord for approval before carrying out the work.

If we have insufficient funds to cover the costs of any necessary work, we will not carry out the work until the required funds have either been received from the landlord or sufficient rent has been received from the tenant.

Kenniston & Associates Ltd will charge an additional fee for supervising repairs or works of over £500 of 10% plus VAT of the final cost.

As a matter of course Kenniston & Associates Ltd will arrange periodic inspections of the property during the tenancy. A charge of £120 per visit inclusive of VAT will be made should the Landlord require a written report of each visit.

If we are required by the landlord to manage the property between lettings when the property is vacant, a fee will be payable of 3% plus VAT of the annualised rent of the most recent rent achieved payable on a daily basis, providing Kenniston & Associates Ltd is given sufficient funds to cover any likely expenditure during this period.

COMMISSION RATES AND OTHER CHARGES

Lettings Service

For introducing a tenant and collecting the rent a fee of 10% plus VAT of the total rent reserved under the terms of the tenancy agreement including any extension or renewal irrespective of whether the extension or renewal was negotiated by us. This includes the grant of a new tenancy to a tenant previously introduced by Kenniston & Associates Ltd whose tenancy has expired and where there has been no intervening letting of the property.

Combined Management and Lettings Service

A fee of 15% plus VAT of the total rent reserved under the terms of the tenancy agreement including any extension or renewal irrespective of whether the extension or renewal was negotiated by us. This includes the grant of a new tenancy to a tenant previously introduced by Kenniston & Associates Ltd whose tenancy has expired and where there has been no intervening letting of the property.

Sales

If during the tenancy or within one year from the end of the tenancy the premises are sold (whether by transfer of the landlord’s interest therein or by the grant of a lease thereof) to the tenant Kenniston & Associates Ltd will be entitled to a fee of 3% plus VAT of the sale price.

Please refer to our Terms and Conditions of Business for a full list of additional charges. Value Added Tax

All commissions and fees payable for our services are subject to VAT at the prevailing rate at the time of invoicing.

Payment

Payment of all fees and commission is due at the beginning of the tenancy but as a concession will be collected on the same periodic basis as rent is paid and will be deducted from the rent as it is received. In the event of a sale payment of commission will be met from the proceeds of the sale. Payment of any other sums due will be deducted from rent received.

Late Payment

Kenniston & Associates Ltd reserves the right to charge interest on any invoices, which have not been paid within 14 days of the due date. Such interest will be charged at 4% above the Base Rate from time to time of Barclays Bank plc.

LANDLORDS RESPONSIBILITIES AND THE LAW

Landlords have always had a duty under common law to ensure the safety of rented property and contents so that no injuries or damage are caused to the occupants, neighbours or the public.

Recent public pressure and subsequent legislation has publicised the liability of Landlords and, in many areas, clarified and defined these liabilities.

The following information is intended to explain the implications and requirements of various statutory instruments and safety legislation as they apply to rented property.

If an accident occurs, in or outside a rented property, that is due to lack of maintenance or as a result of breach of legislation, landlords may be sued by tenants, visitor or by a member of the public; and prosecuted by the Local Authorities.

Failure to comply with safety legislation is a criminal offence.

This information sheet is intended for guidance and in not an authoritative statement of the law. If you need further information you should contact your solicitor.

THE GAS SAFETY (INSTALLATION AND USE) REGULATIONS 1994

Regulations apply from October 31st 1994

“It shall be the duty of any person who owns a gas appliance or any installation pipework installed in premises or any part of premises let by him to ensure that such appliances or installation pipework is maintained in a safe condition so as to prevent risk injury to any person.”

It is the duty of the landlord to “ensure that each appliance to which that duty extends is checked for safety at intervals of not more than 12 months by, or by an employee of, a member of a class of person approved for the time being by the Health and Safety Executive.”

The Landlord must “keep a record in respect of the appliances to which that duty extends of the dates of the inspection, the defects identified and any remedial action taken.”

“The record referred to above shall be made available upon request and upon reasonable notice for the inspection of any tenant who may be affected by the use or operation of any appliance to which the record relates.”

“Gas appliance means an appliance designed for use by a consumer of any mains, propane or calor gas for heating, lighting, cooking or other purposes for which the gas can be used. This obviously includes central heating systems and other heaters, cookers, refrigerators, tumble dryers, indeed any fitted gas appliance.”

“Gas installation pipework’ means gas pipework, valves regulators and meters”

Responsibilities Of The Landlord

The landlord of a let property must not permit a gas appliance to be used if at any time he knows reason to suspect that:

  • there is insufficient supply of air for the appliance for proper combustion
  • the removal of the product of combustion from the appliance cannot be safely carried out
  • the room in which the appliance is situated is not adequately ventilated
  • any gas is escaping from the appliance or any connecting gas fitting
  • the appliance is so faulty or mal-adjusted that it cannot be used without danger

Installation And Checking Of Gas Appliances

Only companies or individuals who are approved by the Health and Safety Executive may carry out installation and checking of gas appliances and pipework, fittings and meters.

This means Gas Safe registered companies or individuals approved for work on residential property.

Type Of Appliances

All gas appliances must be able to be used safely. There are restrictions on the type and heat output of appliances that may be installed in rooms intended for sleeping or in bathrooms and shower rooms.

Gas Safe registered engineers will be able to advise you.

Landlord Documentation

Letting Agents acting for their landlords are guilty of a criminal offence if annual inspections and any necessary repairs or maintenance are not carried out. Therefore, when appliances have been checked and service contracts arranged, landlords must ensure that they receive (from the person who carried out the work) an official record of the engineer’s name, address the work carried out and the date.

Copies of all service contracts and appliance checks must be passed to your letting agent for their files.

ELECTRICITY SAFETY

The safety of Consumer Goods is controlled by the requirements of the Consumer Protection Act 1987. These requirements extend to consumer goods supplied in the course of business – in this case rented accommodation. The landlord is responsible for ensuring that safety rules are complied with – in particular that all electrical appliances are safe for use i.e. that there should be no risk, apart from one reduced to a minimum, that the electrical equipment will in any way cause death or personal injury to any person.

Other legislation (principally the Electrical Equipment (Safety) Regulations 1994) covers electrical installation and the safest way of avoiding prosecution for breach of one of the many regulations is to ensure that everything in the rented property is regularly checked and serviced.

Most items, which have been purchased since June 1989, should meet British Standards. If an appliance is older than this it should be checked by a competent electrician.

Electrical equipment should be checked for the following:

  • Live parts should not be accessible
  • Leads should not be worn or frayed and be complete with no joins
  • Correct plugs (marked BS1363) should be fitted and correctly fused.
  • Any moving parts should be guarded
  • Electric blankets should be serviced according to the manufacturer’s instructions.
  • Microwave doors should be clean, free from corrosion and effective.
  • Washing machine, cookers etc, should be serviced and in good working order
  • Electrical heaters and central heating appliances should be serviced annually
  • Fireguards should meet BS3248
  • Any fire extinguisher should meet BS3248
  • Fire blankets should be marked BS6575 1985

SMOKE ALARMS

The Building Regulations 1991 state that all properties built since June 1992 must have mains operated interlinked smoke alarms fitted on every floor.

CARBON MONOXIDE ALARMS

The Smoke and Carbon Monoxide Alarm (England) Regulations 2015, state that private sector 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 (eg 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.

OTHER SAFETY REGULATIONS

Where a house is divided into flats, the Landlord retains control and occupation of all the common ways. Legislation such as the Housing (Management of Houses in Multiple Occupation) Regulations 1990, the Occupiers liability Act 1958 and the Housing Act 1985 place responsibility on all landlords for the safety of tenants and visitors and anyone else who comes into the building.

All fire safety regulations must be adhered to and there must be full provision of such fire precaution works as the local authority or fire service may require.

THE FURNITURE AND FURNISHINGS (FIRE) (SAFETY) REGULATIONS (AMENDMENTS) 1993

These regulations aim to improve safety by requiring all furniture and furnishings in rented properties to pass the ‘cigarette test’ Most new furniture is marked with a symbol to show that it has passed this test.

Property Let Prior To 1st March 1993

The transitional period expires on 31st December 1996 during which time all existing furniture (to which the regulations apply) which was supplied and already in use in the same letting property before 1st March 1993 may continue to be used until 31st December 1996 whether or not there is a change in tenants.

After 1st January 1997 all furniture and furnishings supplied, whether new or old, and whether or not previously incorporated in a letting must comply.

Property Not Let Prior To 1st March 1993

All upholstered furniture and furnishings in accommodation made available for letting for the first time since 1st March 1993 must meet the requirements.

Furniture And Furnishings That Will Have To Comply

The Regulations apply to all upholstery and upholstered furniture and loose fittings, permanent or loose covers. This includes: beds, mattresses, pillows, sofas, armchairs, scatter cushions and beanbags. New furniture is marked with a ticket to show that it passes the regulations. Carpets and curtains are not covered by the regulations

Introducing New Furniture

Furniture and Furnishings introduced after 1st March 1993 regardless of whether it had been let prior to March 1993 must comply with the regulations. Furniture manufactured since 1983 will probably comply.

Exclusions To The Regulations.

Furniture that was manufactured before 1st January 1950 does not need to comply with the regulations, as apparently

defective inflammable materials were not in use prior to 1950. This therefore exempts ‘period’ or antique furniture.

You should check all relevant furniture, and any items that fail to meet the Fire Resistance Requirements should be replaced immediately.

NON COMPLIANCE OF THESE REGULATIONS CARRIES A PUNISHMENT OF SIX MONTHS IMPRISONMENT OR A £5000 FINE OR BOTH

TAX

All landlords are liable to income tax on the income derived from letting their property in the UK. This is the case whether the landlord is a UK resident, overseas resident, company, overseas company, trust or offshore company.

Kenniston & Associates Ltd is liable for overseas landlord’s tax as his agent unless the landlord has made a successful application for a certificate FICO approval, exempting Kenniston & Associates Ltd from this liability.

In the event that Kenniston & Associates Ltd do not hold a tax exemption certificate, we are obliged to retain tax from rent due and make quarterly payments to the Inland Revenue. We draw your attention to clause 12 of our terms & conditions of business.

We recommend all landlords seek advice from their accountant, as Kenniston & Associates Ltd is unable to offer tax advice.