At Azure Property Solutions we offer a dedicated range of Letting and Management Services to meet your individual needs whilst ensuring that you (Landlord) and your property are conversant with the relevant legislation and that we (APS) are retained by you in providing the appropriate guidance, advice and assistance in the needs of any diligent Landlord.
Whether you are a private home owner, an investment landlord or a corporate property company, we can tailor our service to meet your individual requirements. As an independent specialist we can offer you a bespoke and personal service that is unrivalled in the market place. Our Terms of Business and operating procedures are stringently reviewed and are subject to audit by the industry governing bodies detailed below. Similarly our accounting practices are fully compliant with both the Royal Institution of Chartered Surveyors (RICS) and Association of Residential Letting Agents (ARLA) byelaws and rules. In order to achieve this we undertake to have an independent audit carried out annually.
1. Requirements and Formalities
(a) To Let Boards – We will erect a To Let/Let by board to aid the ongoing marketing unless advised by you otherwise.
(b Change of Ownership – If the property is sold whilst let the original Landlord will be responsible for the remainder of the fees payable subject to the fixed term tenancy, unless the new owner agree to retain our management and sign the Terms of Business.
(c) Furniture and Furnishings Safety Regulations – Landlords need to comply with the legislation namely Furniture and Furnishings (Fire) (Safety) (Amendment) Regulations 1993. By signing the contract you accept that your property and contents meet these regulations *
(d) Gas Safety Regulations – The Gas Safety (installation and Use) Regulations 1998 apply to all Landlords of domestic property and compel them to have all gas equipment checked annually by a qualified person, to keep records of work carried out on the appliances and obtain a Gas Safety Report (GSR). The GSR must be made available prior to the commencement of tenancy and we reserve the right to obtain a GSR where none is provided at the outset of the tenancy. The costs of the GSR will be born by the Landlord in all cases. By signing the contract you accept that your property and contents meet these regulations *
(e) Electrical Safety Regulations - A new part of the Building Regulations, Part P Electrical Safety came into force on 1 January 2005, which requires electrical works to be carried out by a qualified/competent electrician. Implementation of the Housing Act 2004 has taken Part P Electrical Safety of the Building Regulations a stage further and Counsel’s Opinion confirms that to avoid prosecution should a Tenant sustain injury, all properties to be let require a Portable Appliance Test (PAT) and a Fixed Wiring Test (FWT).
Where three or more sharers occupy a property, the Housing Act 2006 classifies it as a House of Multiple Occupation (HMO) which makes it mandatory for an electrical safety test to be carried out and a certificate obtained.
Assured Lets of Bath reserves the right to obtain both a PAT and FWT for any property prior to the commencement of a tenancy, or on renewal, at the landlord’s expense, where these are not supplied by the landlord in time.*
(f) Houses in Multiple Occupation (HMOs) and Housing Health & Safety Rating System (HHSRS) - The above legislation, which came into force on 6 April 2006, will classify a property as an HMO requiring mandatory licensing where it is part of a building which is 3 or more storeys and is occupied by 5 or more occupants who form 2 or more households sharing basic amenities. The legislation is complex and individual authorities have the power to set prescribed licensing in addition to the mandatory licensing as set out in the above Act. The penalties associated with not having applied for a license could attract a fine of up to £20,000, therefore, if you believe the legislation applies, it is essential you contact your local authority to register the property. Should you wish us to assist with the registration there will be a fee of £70.00 plus VAT. By signing the contract you accept full responsibility for ensuring your property fully complies with the said licensing laws.*
(g) Energy Performance Certificates (EPC) - From October 2008 landlords of residential rented property are required to provide all new Tenants with an Energy Performance Certificate.
The EPC must be made available free of charge by a Landlord to a prospective Tenant prior to the commencement of a tenancy. An EPC is valid for a period of 10 years.
(h) Preparation of a Property - We reserve the right to charge an
administration fee in addition to any contractors costs for arranging any of the following in readiness for a let –
• refuse collection / clearance
• shopping
• moving furniture
• any other minor works
(i) Smoke Detectors - The Landlord agrees to provide smoke detectors on each floor of the building. You may find this a condition of your Buildings Insurance and could save lives. If they are battery operated it will be the responsibility of the Tenant to ensure that the batteries are replaced. The Landlords must ensure that the smoke detectors are in working order before the Tenant moves in.
2. Marketing the Property
We continuously strive to promote ourselves to as many potential Tenants as possible, using a number of ways and means. In addition to this we will promote and market your property through the following channels;-
High profile Internet Marketing with
azurepropertysolutions.com, Find A Property, Rightmove amongst other property portals
City Centre Premises
Striking ‘To Let’ Boards
Local Newspaper Adverts & Features
Colour Property Lists & Photographs
Contacts with many local companies & Relocation Agents
3. Inventory and Schedule of Condition.
It is essential and in the Landlords interests to have a comprehensive Inventory compiled prior to the Tenancy. The costs for compiling and checking the inventory will vary according to the size of the property, level of furnishings and time required to undertake this service. As Landlord, it is usual for you to be responsible for the preparation of the Inventory and Schedule of Condition and ‘check-out’. The Tenant will be responsible for the ‘check-in’. Fees will be subject to VAT at the prevailing rate and are non-refundable after the service has been completed. We will not accept any responsibility should Landlords prefer to carry out their own inventory formalities. We will in most cases retain the services of a professional Inventory service.
4. Mortgages and Insurances
(a) Consent to let – If you have a mortgage on the property you must obtain the consent of your mortgage company. You may also require the consent from the superior Landlord in the case of leasehold property. Your insurance company should also be made aware of your intention to let the property and consent may also be needed from them.
(b) Insurance - a valid insurance certificate must be made available prior to marketing.
5. Tenancy Agreements
We will, on behalf of the Landlord, sign the Tenancy Agreement. Accordingly the Landlord by signing our Terms of Business confirms the length of tenancy subject to the Tenancy Offer letter notifying the terms and details of the let.
The cost of drafting the Tenancy Agreement is split equally between the Landlord and the Tenant.
6. Tenant Selection
Once registered, we will qualify suitable Tenants and reference them from appropriate sources, which includes previous landlords (if any), employer / business and credit checks using a reputable Credit Referencing agency.
7. Transfer of Rents
Our aim is to automatically transfer any rents received, to your bank within as few working days as possible. We must, of course, have cleared funds in our account and the Landlord must be entitled to the rent in accordance with the rent due date specified in the Tenancy Agreement. We operate the BACS system for processing all rents.
8. Tenant infringements
Should the Tenant fall behind with the rent we will automatically adopt our arrears procedure and if we become aware of any other breaches of the Tenancy Agreement you will be informed accordingly. If it becomes necessary to take legal action you will be responsible for instructing your solicitor and for all fees arising.
9. Payment of outgoings
We will pay property related bills (with the exception of mortgage payments) on your behalf and account to you on your rental statement. However we wish to make it quite clear that we are entitled to accept and pay bills on your behalf which appear to be correct. We are unable to make payment of any outgoings from our own funds therefore we require sufficient monies to be available at all times. Any penalty or charge for non payment must be born by the Landlord.
10. Utilities
We will advise the local council and relevant water company of the Tenant details when commencing and terminating a tenancy.
11. Repairs
Under our fully managed service we will investigate any faults reported at a property and instruct contractors to carry out repairs. In the case of minor repairs or emergencies (up to £200.00 excluding VAT) these works will be carried out immediately without reference to you providing we are holding sufficient funds.
Where major works are necessary, for example, roofing, replacement of a boiler or re-decoration, an estimate will be obtained and sent to you for approval.
12. Refurbishments
We are able to provide a comprehensive service from the installation of new kitchens and bathrooms to redecoration, soft furnishings and carpets. The funding for any such works is required prior to contractors being instructed. Similarly, we are able to assist with insurance claims on your behalf while the property is Tenanted.
13. Property visits/Vacant Management
Property Visits - Under our fully managed service we will carry out property visits twice annually to:
• Monitor the performance of the Tenant in respect of their contractual Obligation’s
• Allow Tenants to communicate ‘on-site’ should they have special requests or queries
• Report will be sent with any comments with regard to any recommendations for action required
These visits should not be relied upon to pick up any structural defects and does not include lofts.
Vacant Management - The Vacant Management service is a flexible service of regular visits to your property at agreed intervals to give you peace of mind. It is designed for the empty period between lettings, while a property is on the market for sale or to cover any period that the property is empty for any other reason.
a) Visits :
We will visit the property at agreed intervals to ensure that there are no obvious defects or irregularities. These visits should not be relied upon to pick up any structural defects, they consist of a walk through, which does not include lofts. The cost of these visits will be £50.00 plus VAT per visit.
b) Reports :
Following each visit we will submit a brief report to you highlighting any irregularities, defects or problems, notwithstanding the above.
c) Emergency Float :
A minimum of £200.00 must accompany the initial payment of our fees so that we have a float to pay for repairs in the event of an emergency. The balance of the float will be returned to you upon written confirmation that the Vacant Management service is to cease.
d) Insurance :
It is essential that you notify your insurance company of your intention to leave your property empty. They will advise you of any additional cover that may be necessary.
14. Tax
Finance Act 1995 - The Self Assessment system applies to all tax payers whether a UK or Overseas Resident. Landlords residing overseas may apply to the Inland Revenue for an approval number which authorizes us to pay rent without the deduction of tax. However, where no approval number is available we are legally bound to deduct tax at the basic rate. If a Tenant pays rent directly to a landlord who is resident overseas, the Tenant becomes responsible and can withhold the tax.
15. Deposits
If we are instructed by you to hold the Deposit, we shall do so under the terms of the Deposit Protection Scheme. If you decide to hold the Deposit yourself, we will transfer it to you within 5 working days of receiving it provided you supply us with the membership number of the Protection Scheme where the Deposit will be covered. You must then register it with another Tenancy Deposit Protection Scheme within a further 9 days if the tenancy is an Assured Shorthold Tenancy. If you fail to do so the Tenant can take legal action against you in the county court. The court will make an order stating that you must pay the Deposit back to the Tenant or lodge it with the custodial scheme which is known as the Deposit Protection Scheme.
In addition a further order will be made requiring you to pay compensation to the tenant of an amount equal to three times the Deposit. You will be unable to serve a Section 21 Notice on your tenant until compliance with the above conditions and the Court will not grant you a possession order. We, as Agent, have no liability for any loss suffered if you fail to comply.
At the end of the Tenancy If there is no dispute we will keep any amounts agreed as deductions where expenditure has been incurred on behalf of the Landlord or repay the whole or the balance of the Deposit according to the conditions of the Tenancy Agreement with the Landlord and the Tenant. Payment of the Deposit will be made within 15 working days of written consent from both parties.
16. Tenant Purchase
In the event that a Tenant, or any person granted the benefit of the tenancy i.e. an occupant introduced to you by ourselves, purchases the property which he/she is renting or had been renting within the previous six months, where we have been involved in negotiations in the sale of the property, we will charge a commission of 1.25% of the negotiated purchase price. The fee is payable upon completion or on exchange of contracts if completion is more than 6 months after. All fees are subject to VAT at the prevailing rate.
17. Possession and Notices
If we are required to serve a Notice of Possession on your Tenant, there will be a minimum charge of £30.00 plus VAT.
Notice of our Agency cessation of management can be provided by giving us two clear months notice to terminate this contract.
* See Safety Regulations for Landlords
Terms and Conditions