Leasing Property to Túath Housing An Introduction

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1 Leasing Property to Túath Housing An Introduction Túath Housing Association 33 Leeson Street Lower Dublin 2 T: F: changing housing for the better

2 WHY LEASE TO TÚATH HOUSING? There are many reasons why owners lease their property. For you, it may be that you have properties in a slow selling housing development, which you may want to lease as a business investment. Whatever the reason, you want to get the best leasing arrangement you can one where you have guaranteed regular income and peace of mind, knowing that your property is being properly taken care of. We offer such an arrangement and this booklet sets out the main things you need to know about leasing your property to Túath Housing. About Túath Housing Túath Housing Association was established in 2000 and has approved status for Voluntary Housing under Section 6 of the Housing (Miscellaneous Provisions) Act The Association is registered with the Department of the Environment, Community and Local Government, has charitable status and is a member of the Irish Council for Social Housing. Leasing arrangements Most properties are leased to us under the Long Term Leasing Initiative for periods of 10, 15 or 20 years. Under this scheme the property must be in a fully lettable condition when we take on the lease. Details of the standard specification of property required are set out later in this booklet. All our leasing schemes provide a comprehensive management service and a competitive level of rental income, which is guaranteed. This enables you to avoid the risks associated with letting your property on the open market, whilst maximising your income potential. At the same time, your property will provide a housing resource for the Local Authority to use as social housing for a household from their waiting list. Túath s Procurement Service We will offer professional advice and support on leasing your property. The service includes; a condition survey and subsequent report carried out by our technical team identifying works required to ensure the property meets Túath s standard specification for leased units, an independent valuation, and the drawing up of a lease. We will provide additional support and advice as required. Túath will retain the first months rent for its services to partially cover its scheme administration costs. Repairs and Maintenance We aim to visit your property regularly during the lease to check its condition. We carry out any internal repairs as required throughout the length of the lease. We do not charge you for these repairs. You are only responsible for repairs to the structure of the building or to the services.

3 Lettings and Tenant Liaison We arrange lettings, collect rents, deal with day-to-day problems that tenants may have and take legal action against a tenant if necessary. Any issues concerning the tenants and your property will become our responsibility, and we will take care of it for you. Vacant Possession At the end of the lease, we will return the property to you with vacant possession and in a reasonably good condition (subject to fair wear and tear). Summary of scheme benefits A guaranteed monthly rent, for the whole period of the agreement, whether the property is occupied or not (provided property is available) Water charges on the property are paid by the tenant and no responsibility will fall to the owner for these charges A fixed term lease of 10, 15 or 20 years. Regular visits to the property by Housing Association staff. Lettings arranged by Túath in conjunction with the Local Authority. A full maintenance service for day-to-day repairs. Experienced and qualified housing management staff dealing with the tenants and the properties. Public and Employer Liability insurance held by Túath. Heating Appliance servicing arranged by Túath. Legal documentation for owners and tenants is provided by Túath. Guaranteed vacant possession at the end of the lease. The property is returned in good condition (subject to fair wear/ tear). General Information Lease The lease is drawn up by Túath Housing and is the legal document that sets down our respective obligations. The lease is signed when your property is ready to let. The lease term available cannot be for less than 10 years or for more than 20 years.

4 The lease terms are not negotiable, but as the lease involves legal consequences you are advised to take your own independent legal advice. Tenancy Agreement Túath Housing grants Non-Secure Tenancy agreements to the tenants who occupy the leased properties. This means that we are able to guarantee you vacant possession at the end of the lease. A household nominated by the Local Authority within which the property is situated will most likely occupy the property for the full term of the lease. Sub-letting In some cases we sub-let the property to the local authority and manage it for them. We use this type of arrangement if it enables us to work more effectively with our local authority partners. In these cases we issue Non-Secure Tenancy agreements on behalf of the local authority. If we do sub-let your property to the local authority the terms of the lease remain exactly the same and there will be no difference in the service you receive from us. Only one family or household will ever occupy the property at one time. Rents The rent reflects the number of rooms in the property, its size and condition and will vary according to the area in which the property is situated. The rent is subject to an independent valuation which will be organised by Túath. You will receive a rental income of 80 percent of the open market rates for houses and 85 percent of the open market rates for apartments due to the attractive package on offer and in particular the long term nature and low risk elements of the scheme. Rent reviews will be provided every four years. This is government policy for the initiative and cannot be deviated from. All rents are guaranteed throughout the duration of the lease and are paid monthly in arrears by bank transfer on the last day of each month directly to your bank / building society account. Rental payments are calculated on a daily basis (i.e. the annual rent is divided by 365) and are then paid monthly in arrears on the basis of the daily rate multiplied by the days in the month. Rents are paid from the first tenancy date. Survey A Schedule of Condition is required on all properties before the lease is signed. This is a detailed record of the condition of the property and is necessary in order to identify essential works that may be required for the purpose of leasing the property for a number of years. This will also help to ensure that the property is safe and sound for the full term of the lease and it is a useful reference point for you at the end of the lease for dilapidations purposes. Túath s technical team will prepare the report.

5 Service Charges You remain responsible for the payment of all and any scheme service charges (if relevant) during the term of the lease and you will be asked to provide evidence of payment on an annual basis. Tax You remain responsible for the payment of all taxes (including any imposed after the date of lease agreement) and will be asked to provide evidence of payment on an annual basis. PRTB (Private Rented Tenancies Board) You remain responsible for the registration of the tenancy with the PRTB and will be asked to provide evidence of payment on an annual basis. Building Insurance You will need to insure your property under a policy that is suitable for letting. We at Túath Housing will require evidence of the insurance policy provided. Documentation and other items required Before we lease your property we will need to receive certain documentation and other items. You will be sent any necessary forms to complete once we have inspected your property. The things we will require are as follows: Proof of ownership of the property a copy of the Office Copy Entry (OCE) from the Land Registry or a declaration form from your solicitor issued within 3 months of our first inspection. Bank or building society details (for us to make direct payments of rent), signed by each and every property owner. Tax compliance declaration and details form, signed by every owner. Copies of property related certificates and warranties; eg: Homebond, Architects compliance certificates, Fire certificates, BER certificates, Electrical Periodic Test certificates, Heat Appliance servicing certificates, etc. as deemed necessary. A copy of your certificate of insurance. A copy of your service charge breakdown (if applicable).

6 Planning and Building Regulation consent (if the property is recently converted or built). MPRN / GPRN and other utility account information. End of Term The lease ends either when the term expires or at an earlier date as may be allowed by the terms of the Lease. You will get vacant possession of the property when the lease ends. At the end of the lease we inspect the property to establish whether any repairs are required to bring the property back to its original condition less fair wear and tear. We will either carry out any works required or make a payment to you equivalent to the cost of the works. We are not obliged to replace floor coverings, furniture or kitchen appliances at the end of the lease or to fully redecorate. We will replace any other items that are missing or broken but we cannot guarantee that these will be the same as the original, especially if the lease runs for a maximum term of 20 years. Terms of Negotiation Any works identified in reports prepared by Túath s technical team indicate the basic minimum standards required. The expenditure incurred by you in meeting such standards is undertaken entirely at your own risk and does not bind the Association to any obligation to lease or manage your property. Property Standards The following is a guide for owners who are considering leasing their property under our schemes. It sets out the standard of safety, decoration etc., that we require before we can lease your property. We will come and inspect your property to help identify if any works need to be done to bring it up to the required standard. 1. Safety Checks Safety Certificates relating to gas and electrical installations must be obtained and provided to Túath before the lease can begin. 2. Gas Service Care Túath Housing carry out an annual gas service through one of our approved contractors. 3. Room general requirements All bedrooms and living rooms must open onto a hall or landing. All rooms must have lampshades and bulbs to single pendant light fittings. sealed, globe type light fitting/spot lights is required in bathrooms and toilets. A

7 A minimum of two switched double sockets must be provided in every room except the bathroom. 4. Decoration The standard of decoration should be good paintwork and wallpaper should ideally be fresh but if not at least be clean, free of stains, dirty patches or flaking, and papered walls should not have any torn areas. Ideally, colour schemes should be neutral; eg: white, magnolia and cream and easy clean paint products should be used. If we need to redecorate during the course of the lease, we will not be able to match wallpaper, or paint techniques or colours, and will redecorate in a plain neutral colour. 5. Heating Properties should have gas or oil central heating or electric storage heating. Open fireplaces are permitted but only when as an additional source of heating. 6. The Kitchen We need the kitchen to meet these minimum standards: Adequate range of base and wall storage units. Adequate and practical work surface areas. 150mm high tiled splash back above all worktops Mastic sealant between worktops, sinks and tiles. Non-slip flooring/tiles 1 x fire blanket minimum 1m x 1m Fire check doors fitted with chain self-closers or hydraulic closers Provision of the following appliances: 1 x 4 ring hob, oven and grill 1 x extract cooker hood ducted to the outside 1 x fridge freezer (or 1no x fridge and 1no x freezer) 1 x washing machine 1 x microwave oven 1 x dryer (where the property does not contain a garden/yard for the exclusive use of that house) 7. Bathrooms The bathroom should meet these minimum standards: Baths and basins should all have a plug and chain. Bath panels to be securely fixed.

8 Shower enclosures to be fully tiled. Where there is a shower provision over a bath, the walls will require to be tiled from the bath to the ceiling on 2 / 3 walls depending on the arrangement 150mm high splash back behind wash hand basin Mastic sealant between bath/basin and tiles. Lockable door. Lighting should be operated by a cord switch or switch located outside the bathroom. Bath / showers to have non-slip base Non-slip flooring/tiles 1 x bathroom cabinet fixed to wall In any bathroom or en-suite, or toilet room without a window, provide 1 x mechanical extract fan ducted to outside with 20 minute over-run. 8. Floors Floor covering should be provided in all rooms and stairways. There is a requirement for Tiling/nonslip floor covering in wet areas. 9. Stairs There should be no gaps between the stair balustrades, which could allow a small child to fall through (maximum width between balustrades should be 100mm). We cannot accept open plan staircases. 10. Windows Each living room and bedroom must have at least one window, which opens to the outside. Windows above the ground floor must be fitted with childproof restraints suitable to the type of window, to limit the opening of windows to 100mm. Borrowed light windows above any fire resistant doors must be of wired/toughened glass. Glazing should be free from cracks, and any loose or missing putty replaced. Windows should be in good working order, with easy opening/closing operation. 11. Ventilation Bathroom, kitchens and WCs must be vented to the outside. window, this must be by an extractor fan. If there is no 12. Doors All doors should open and close freely. Front doors should be fitted with a cylinder and five-lever mortise lock. Front entry doors to flats must be one-hour fire resistant (or half hour fire resistant with in tumescent strip), and be fitted with Perko or hydraulic type self-closers. 13. Services

9 The following minimum standards are required: Each flat/house must have its own independent services gas, electricity and water, and its own separate meters. Stopcocks for water and gas should be identified and labelled. Any Communal hallway or external lighting must be connected to a landlord meter supply and meters and fuse boxes must be contained within standard compliant fire resistant cupboards. External lighting must be provided near entrance doors if there is any identifiable hazard e.g. an unlit passage to the street, an unlit flight of stairs. A dustbin or wheelie bin should be provided. 14. Fire Precautions A minimum of one smoke alarm and a fire blanket must be fitted in each flat/house. Where there is more than one flat in a property, a communal fire system and fire safety equipment are required. Properties with more than one flat should have a single stairway with a continuous uninterrupted route from floor to floor, as the minimum standard of fire escape. Compliance and fire certificates will be required. 15. External Gardens must be neat and tidy, and all boundaries/fencing should be secure and intact. Any external buildings (sheds) are to be safe and secure and free of any stored items. Túath will not have any responsibility for external storage sheds. 16. Furniture Landlords will be required to provide the following furniture: Lounge/Dining Bedrooms Floor Covering Suite of furniture appropriate to room size Blinds/Curtains Appropriate Floor Covering Beds and mattresses (double beds, plus single beds appropriate to the size and number of bedrooms). Wardrobe for each person. Chest of drawers for each person.

10 Kitchen Bathroom/ En-suite Appropriate Floor covering Blinds/Curtains Cooker Hood Extractor Refrigerator/Freezer Washing Machine Appropriate Floor Covering Bathroom Cabinet Shower screen/curtain Blinds/curtain All upholstered furniture and mattresses must comply with Furniture and Furnishing (Fire) Safety Regulations and must have a label to indicate that they comply. Mattresses must be new and in their original plastic wrappers. Document last updated: 30/11/2017

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