Our Full Management service

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1 Our Full Management service We ll find you good tenants, collect the rent and look after your property like our own more details and terms & conditions Effective from October 2015 If you re letting a property with us, please read and take note of this document carefully, then please sign and date each page where shown. Any amendments made to this agreement will not be valid without the written confirmation of CJ Delemere.

2 What we ll do for you... Our Full Management service is designed for landlords who want us to find good tenants, collect the rent and look after the property. Here s what we ll do for you. Before the Tenancy begins... offer advice on your property s rental value and the best marketing procedures we will market your property extensively Online, in our office window and to our database of prospective tenants in line with the Consumer Protection from Unfair trading Regulations formerly known as The Property Mis-descriptions Act we will not instruct a sub-agent to market and let your property without your written permission to do so. accompany all prospective tenants on viewings select suitable tenant(s) obtain and verify references from the tenants : employer to check their employment status and income bank to verify they ll be able to meet the monthly rent commitment accountant if the tenant is self-employed or a company director, to check income solicitor if the rent is paid via a trust fund or legal guardian guarantor if the tenant is a student, to check the guarantee draw up and obtain signatures on the initial Tenancy Agreement. The Tenancy created can include a break clause if required collect one month s deposit on your behalf, together with the first month s rent ssue i instructions to the ingoing tenants of all the utilities they need to notify During the Tenancy... provide a copy of the Tenancy, a schedule of all monies received with fees deducted together with all relevant tenant(s) references collect the rent, every month and forward it on to you by bank transfer with a monthly statement (usually within 10 days of the rent due date) arrange for all necessary repairs to be carried out and advise you of problems arising and attend to all emergency calls (Christmas and New Year excluded) respond to tenants calls during office hours (Monday to Friday: 9am 6pm & Saturday 9am 3pm) and provide emergency contractor contact details for emergencies outside these hours check your property annually and report on any matters arising. The fee for this service is 29 + vat manage any repair or maintenance work required that relates to the Tenancy, up to a value of 2500 ex vat, including obtaining quotations and/or estimates, specifying the work and managing the project (freehold issues excluded, unless we also manage that). For projects over 2500, see additional services on page 4) arrange for garden & cleaning services as agreed between us advise on gas and electrical safety requirements (eg obtaining a GAS SAFE or NIC registered engineer to carry out inspections when required and advise of their costs) offer tax advice to overseas landlords provide ongoing advice on all letting and management issues Before the Tenancy ends... issue a Tenancy renewal on your authorisation advise on any rent increases or any matters relating to terminating the contract should you require possession of your property, we can issue Notice to terminate your contract with the tenants advise on any matters relating to terminating the contract See advice, overleaf After the Tenancy ends... check the property and the inventory and advise on any matters relating to the deposit advise on furnishing and refurbishment services in between tenancies advise of repairs that may be essential or otherwise following the tenants departure from the property. 2

3 Full Management service fees... Monthly Management fee: Tenancy set up fee: 12.5% of monthly rent One weeks rent collected at the start of the tenancy Optional services Deposit registration fee (see pages 6 and 7 for more details) 50 + VAT Energy Performance Certificate (EPC) required by law if you don t have a valid one (see page 8) 60 + VAT Inventory & Check In studio 1 bed property 2 bed property 3 bed property 4 bed property 5 bed property Furnished Unfurnished With CJ Delemere you ll find there are no hidden costs and our fees are a good deal less than many of the big brand agents Advice: We need at least two weeks written confirmation to serve Notice on your behalf. This allows enough time to prepare and check all documents and send to the property. The notice period served to tenants must be no less than two months and must be served in writing on or before the rent due date. All costs quoted exclude VAT Landlord s initials CJ Delemere Date 3

4 Additional services... We are pleased to offer the following services, should you need them. These costs are in addition to the 12.5% fee for the Full Management service. Deal with insurance claims on your behalf a percentage of the claim, minimum 10% Arrange purchases on your behalf (eg kitchen equipment or furnishings) if you have specific requirements Duplicate accounts eg for your accountant to prepare a tax return Deal with freehold matters relating to your property Managing and overseeing refurbishment projects over 2500 ex vat 25 per hour, plus the cost of the items purchased 75 by negotiation with our freehold dept. 10% of the cost of works If you have a large project which can be divided into sub-projects under 2500 we will manage those without charge Managing renovation while the property is vacant Waiting at the property for non-management duties, eg to give access to the property for the delivery or removal of items on your behalf. 10% of the cost of works 50 plus vat up to the first hour and 50 per hour thereafter Electrical appliance testing (PAT) 55 for ten appliances (in N10 area); 85 for twenty plus items. Please ask for quote otherwise Dealing with any admin arising from a deposit dispute Supplying and fitting smoke alarms per alarm all costs + vat 4

5 Renewing a Tenancy... All our main competitors charge a full 10% + vat for renewing a Tenancy but we do it for free! If your existing named tenants renew their Tenancy, we do not charge anything for drawing up a new Tenancy (all our main competitors charge a full 10% + vat). However the deposit registration must be renewed annually. If we ve registered your deposit, the Tenancy Deposit Scheme charges 10 + vat per renewal. Renewing a Tenancy at the natural expiry of a term with a change of Tenant If you have multiple tenants in a property, and one or more of those tenants decides to change, this will be deemed a new Tenancy. We will charge a fee of vat per replacement Tenant to set up a new Tenancy. This includes the cost of TDS registration. Advice: The terms and conditions contained in this document will continue to apply throughout the entire term of the original contract and any or all renewals thereafter, whether fixed term or periodic (monthly rolling). The fees on previous pages will apply for the duration that the Tenant(s) occupy the premises when a Tenancy is renewed: whether you ask us to negotiate the renewal on your behalf or choose to do so yourself; and whether or not the Tenancy is renewed as a fixed term or continues as a periodic (monthly rolling) Tenancy. While we will make every effort to obtain signed renewal documents, we are not liable if the Tenant fails to return them, and the Tenancy will continue as a periodic Tenancy. Advice: If you ve registered your own deposit, please check the terms of your scheme. 5

6 Deposits... By law if a deposit is taken, it is required to be registered with a Government-approved body, which you can either register yourself, or we can do so on your behalf. If you d like us to register the deposit for you As members of ARLA, we are registered with the Tenancy Deposit Scheme, which is administered by The Dispute Service Ltd, PO Box 1255, Hemel Hempstead, Herts HP1 9GN ( The charge for this service is 50 + vat. Once registered, we will forward you a copy of the Tenancy deposit Certificate of Registration. Once the Tenancy comes to an end, and assuming there is no dispute, we will contact the TDS to de-register the deposit and arrange for it to be returned to the Tenant. Disputes Should a dispute arise concerning any deductions made to the deposit we will liaise with the TDS on your behalf, forwarding documentary evidence and photos supporting any claim for damage. We will also deal with any admin duties involved with the dispute. We charge vat for this service. Renewing a Tenancy When renewing a Tenancy, the deposit registration must also be renewed, for which the Tenancy Deposit Scheme charges 10 + vat. Terms relating to deposits which we register 1. The Tenancy Deposit Scheme 1.1 CJ Delemere is a member of the Tenancy Deposit Scheme (TDS), which is administered by: Tenancy Deposit Scheme, PO Box 1255, Hemel Hempstead, Herts HP1 9GN Telephone Fax Our membership TDS number is G If we, CJ Delemere, are instructed by you to hold the Deposit, we shall do so under the terms of the Tenancy Deposit Scheme (TDS). 1.3 We will hold the Deposit as Stakeholder. 2. At the end of the Tenancy covered by the Tenancy Deposit Scheme 2.1 If there is no dispute, we, CJ Delemere 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 10 working days of written consent from both parties. 2.2 If, after 10 * working days following notification of a dispute to CJ Delemere / the Landlord and reasonable attempts have been made in that time to resolve any differences of opinion, there remains an unresolved dispute between the Landlord and the Tenant over the allocation of the Deposit it will (subject to 2.3 below) be submitted to the Independent Case Examiner ( ICE ) for adjudication. All parties agree to co-operate with any adjudication. 2.3 The statutory rights of either the Landlord or the Tenant(s) to take legal action against the other party remain unaffected. 2.4 It is not compulsory for the parties to refer the dispute to the ICE for adjudication. The parties may, if either party chooses to do so seek the decision of the Court. However, this process may take longer and may incur further costs. Judges may, because it is a condition of the Tenancy Agreement signed by both parties, refer the dispute back to the ICE for adjudication. If the parties do agree that the dispute should be resolved by the ICE, they must accept the decision of the ICE as final and binding. 2.5 If there is a dispute CJ Delemere must remit to The Dispute Service Ltd the full deposit, less any amounts already agreed by the parties and paid over to them. This must be done within 10 working days of being told that a dispute has been registered *These timescales can be changed by agreement with the Tenant in individual cases or by the contract used as standard by the Agent. 6

7 whether or not you or I / we want to contest it. Failure to do so will not delay the adjudication but The Dispute Service Ltd will take appropriate action to recover the deposit and discipline me /us. 2.6 CJ Delemere / Landlord must co-operate with the ICE in the adjudication of the dispute and follow any recommendations concerning the method of the resolution of the dispute. 2.7 Dealing with disputes from non- ASTs: The ICE may agree to resolve any disputes over the allocation of these deposits, by arrangement. If he does: The ICE will propose what he considers the most effective method of resolving the dispute. Landlord, Tenant & Agent must consent in writing to his proposal. Disputes will be subject to a fee of VAT, or 10% of the deposit + VAT, whichever is the greater. Payable by the Landlord and Tenant. The resolution process will not start until the parties consent, the disputed amount and the fee have been submitted. 3. Consumer Protection from Unfair trading Regulation Due to the above Act the Landlord warrants that all the information they have provided to CJ Delemere is correct to the best of their knowledge and belief. In the event that the Landlord provides incorrect information to CJ Delemere, which causes CJ Delemere to suffer loss or cause legal proceedings to be taken, the Landlord agrees to reimburse, compensate and indemnify CJ Delemere for all losses suffered. 4. If you, the Landlord choose to hold the Deposit outside TDS 4.1 If you, the Landlord, decide(s) to hold the Deposit yourself, we will transfer it to you within 5 days of receiving it. You, the Landlord, 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. The Court will make an order stating that you, the Landlord, 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, the Landlord, to pay compensation to the Tenant of an amount equal to three times the Deposit. The Landlord will be unable to serve a Section 21 Notice, (notice to quit possession), on the Tenant until compliance with the above conditions. CJ Delemere has no liability for any loss suffered if you, the Landlord fail to comply. 4.2 OR:- If you, the Landlord decide(s) to hold the Deposit and the Tenancy is an Assured Shorthold Tenancy you, the Landlord must specify to us, CJ Delemere prior to the start of the Tenancy under which other Tenancy Deposit Protection Scheme the Deposit will be covered, so the Tenancy Agreement can be drawn up correctly. If the Deposit is covered by Tenancy Deposit Solutions you, the Landlord must provide proof of membership, together with a copy of the insurance policy before the Deposit can be released. If the Deposit is to be sent to the custodial scheme known as the Deposit Protection Scheme (DPS) we, CJ Delemere will forward the Deposit to the DPS and register the details of the Tenancy on your behalf OR give you a cheque for the amount of the Deposit made payable to the DPS for you to forward within 9 days. Termination of Service If the landlord gives notice terminating the appointment the appointment of CJ Delemere as the landlords agent to provide the managed service than the notice shall relate only to the Service level which is referred to in the notice and CJ Delemere shall continue to provide a Letting Only Service to the Landlord for the remaining period of the Tenancy Agreement (or any later Tenancy Agreement). The landlord shall pay commission to CJ Delemere for the letting Only Service throughout the remaining fixed term and any renewal of a fixed term or any periodic tenancy that arises on expiry of a fixed term, or renewed fixed term tenancy. The landlords liability for such commission will only come to and end upon the tenant vacating the property. Please note that should you wish to change from our Managed Service, such change will be subject to the agreement of your tenant and cannot be undertaken until the end of the existing fixed term tenancy. 7

8 Safety and energy regulations... Gas Safety The Gas Safety (Installation and Use) Regulations came into force in The main provisions are: All flues must be specifically included in any gas check as well as the appliance itself. Records and inspections must be retained for a minimum of two years. Copies of inspection records must be given to the tenants within 28 days of the check and new tenants must be given a copy of the last record of inspection before they occupy the property. All inspections and certificates issued must be carried out by a Qualified GAS SAFE Registered Engineer. All gas fires installed in bedrooms must have an oxygen depletion sensor, which switches off the fire before any build-up of Carbon Monoxide in the room. We advise where there is a presence of any number of gas fires in any part of the property sensor switches are fitted in every room. All landlords not the Managing Agent are responsible for ensuring the above are carried out. The landlord can either arrange for this to be done or instruct the agent to have this work carried out. The landlord should do so in writing as the agency is not responsible or cannot accept any liability if the landlord fails to comply. I f you instruct us to obtain gas Safety certificates, engineers current fees + vat are: 60 for 1 appliance 75 for 2 appliances 100 for 3 appliances And 25 for each extra appliance after that If the gas boiler requires a service this cost is additional. There may also be a 15 charge for a Combustion Performance Analysis test if Gas Safe regulations require it for a particular appliance Energy Performance Certificates (EPC) Before a property can be marketed for sale or rental, an EPC for it must be ordered. A certificate is valid for 10 years and contains information about a property s energy use and typical energy costs, giving it an energy efficiency rating from A (most efficient) to G (least efficient). It also provides recommendations about how to reduce energy use and save money. You are not required to carry out any of the works suggested to improve the efficiency of the property; although if you do, the certificate can be renewed at any time. An EPC will comment on any white goods left as part of the inventory of the property. An EPC must be available to any prospective Tenant before they have committed to the property or have viewed the property. The Tenant must be provided with a copy of the EPC before the start of a Tenancy. We can arrange for an EPC to be carried out at a cost of 60 + vat. Legionella Risk Assessment: It is the sole responsibility of the landlord to arrange a Legionella Risk Assessment prior to any tenant taking occupation including managing any risk. CJ Delemere can arrange for the assessment to be carried out on instruction. Studio or flats Vat Houses Vat (Should you wish to arrange this at the same time of gas certificates you will receive a 10% discount on the above prices. Smoke alarms and Carbon Monoxide alarms The landlord is legally obliged to installsmoke alarms and carbon monoxide alarms. The landlord agrees that he is responsible for ensuring that he complies with all the applicable regulations and legislation which apply to smoke detectors, smoke alarms and carbon monoxide detectors and that these are in working order at the start of the tenancy. Furniture regulations Furniture and Fire Safety Regulations 1988 have set levels for Fire Resistance for upholstered furniture and Furnishings. All furniture, including all second hand furniture, must comply with this regulation. The manufacturer s own labelling will usually confirm this. If there is no label of safety it must not remain in the property and the landlord is responsible for ensuring it is removed. Electrical safety inspections (NIC & PAT) Although there is currently no legal requirement for an electrical safety certificate for Tenanted properties (except in the case of all HMOs) it is the landlord s responsibility to ensure that all electrical appliances provided in their properties are safe to use. In order to avoid the possibility of being accused of neglecting a landlord s duty of care we therefore recommend that electrical appliances be PAT tested Our electrician generally charges 55 + vat for testing up to ten items If you in the would N10 area. like NIC us certificates to arrange can for the be appliances obtained on in request. your property to be tested, then please let us know. 8

9 Other things we suggest you think about Insurance As the landlord, you are responsible for insuring the property. You may need to take out specific landlord insurance, as standard home and contents cover might not sufficiently cover a let property. It is advisable to also contact your insurance company if the property is left empty for lengthy periods (in between letting or during refurbishment). Always read and refer to your own Insurance Policy documents for their requirements and terms. Failure to advise your insurance company of any important details may invalidate any claims you make. Legal protection insurance can be obtained from 75 per year. Please visit for further details. Leasehold properties We suggest you check the terms of your property lease to ensure that there are no covenants that forbid subletting, and consult a solicitor if necessary. Mail re-direction We suggest you make arrangements for mail to be redirected. Details are available from any Post Office counter or from Money Laundering Regulations CJ Delemere is required to comply with the money Laundering Regulations 2007 as may be amended from time to time and the landlord is obliged to provide CJ Delemere with proof of his identity and proof of his address. The Landlord agrees to provide original documents, comprising one from each of the categories below: List A: Proof of identity such as passport, national identity card or full driving licence. List B: Proof of Home Ownership, council tax bill and mortgage statment Taxation UK and overseas residents Your rental profit is treated as investment income and as such is liable to tax whether you are a taxpayer in the UK or not. The basis of your income will be from actual rents received less all related deductions and costs from your property. Currently allowable tax-deductible expenses insurance costs managing agents fees repairs and renewals a percentage of your mortgage interest (currently 70% is deductible) fair wear and tear 10% of total rent The net figure therefore taxed is much less that 22% of the gross figure. All self-assessment and related tax returns are the responsibility of the landlord. We recommend you consult your own accountant or professional advisor to ensure that maximum tax relief is claimed on all expenditure relating to your property. Hmo's Houses in Multiple Occupation, Licences and Electrical Installation Condition Reports if the letting by the landlord of the property is a "house in multiple occupation2 within the definition of the Housing Act 2004, the Landlord is responsible for obtiaing the necessary licence from the appropriate local authority. The Landlord is responsible or finding out i a licence is required for the letting of the Property tot he tenant and information is available at the following website ww.communities.gov.uk Taxation overseas residents If you are overseas during a Tenancy you are required to return form NRL1, available from this office, to enable rents to be paid over without the deduction of tax following receipt of an approval certificate from FICO. If an approval number is not obtained prior to the commencement of the Tenancy, under the Taxes Management Act 1970 section 78 we are required to deduct Income Tax at the basic rate of 22% and pay over the sum quarterly to the Inland Revenue. It is therefore in your interest to obtain the required approval in good time to avoid this deduction. If the property is jointly owned then both owners need to get FICO numbers as the tax office treats each owner as a separate tax entity. We recommend you keep a copy of the form and a note of when you send it so it can be easily traced. For further information relating to overseas tax and the address to which you can send your completed NFL1 form to receive your approval number please contact: NRLS FICO Unit 366b, St. John s House Merton Road Bootle L69 9BB Tel Fax PLEASE ENSURE OUR FICO LETTING AGENT NUMBER IS CLEARLY WRITTEN ON THE FORM: NA All costs quoted exclude VAT Landlord s initials CJ Delemere Date 9

10 Full Management service Instruction to let my property Title Your name Address of property Postcode of property Access arrangements Your address (if different from above) Postcode of property Phone/contact numbers: Home Work Marketing price Mobile per week I/We agree to pay CJDelemere all fees in respect of the following services Full Management service fees: 12.5% of the monthly rent + vat, plus a set up fee of the equivalent of one week s rent + vat Term Required 6 month 12 month 6 month break clause I/We would also like the following services (Please tick to order) and am aware of the previously mentioned additional cost. Inventory Gas Safety Certificate Property cleaning Carpet cleaning Energy Performance Certificate (legal requirement to provide)* PAT testing for electrical appliances If you wish to terminate management contract with CJ Delemere a 3 month notice period is required and can only expire at the end of the current Tenancy Deposit registration (Please tick to order) I would like CJ Delemere to register the deposit I will register the deposit myself Scheme name: Landlord reg no: Your present tenants if you have any (so we can arrange viewings) Name Name Mobile No Mobile No 10

11 Emergency contact details in UK (if you are unavailable) Name Address (if different from left) Contact details: Home Work Mobile Monthly monies to be banked to Bank / Building Society Sort code Beneficiary name Branch Acc no. Roll no. The property s utilities Gas supplier Electricity supplier Telephone supplier Water supplier Gas Service cover Ref no. Ref no. Ref no. Ref no. Ref no. Gas Service tel no Borough Council Ref no. Details of any builder you specifically want to use for repairs and emergency call outs (if you do not require CJ Delemere s contractors) Please note that if your builder is unavailable in an emergency (such as water escape) we will instruct one of our own contracted plumbers/builders to attend) Name Tel no Address Mobile If we sell your property If a Tenant enters into a contract to buy the property, either directly or indirectly by CJ Delemere, we will charge a commission of 1.5% + vat of the agreed sale price. Authority to sign Unless otherwise instructed, CJ Delemere will sign the Tenancy Agreements on your behalf. Should you wish to visit the office and sign the documents personally, please inform the office as soon as possible. Your signature I / we are the legal owners of the above property and have read and understood these Terms and Conditions and wish to instruct CJ Delemere as agents to market our property.(if signed during a visit by an employee of CJ Delemere or place of work, or away from our premises or online, you have the right to cancel this contract within 14 days of the date of signature) Name All Signature costs quoted exclude VAT Landlord s initials CJ Delemere Date Date 11

12 418 Muswell Hil Broadway London N10 1DJ Sales: Lettings: Block Management: /1498 Fax:

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