Fraser & Co Landlords Guide and Fees

Landlord Guide & Fees

Your trusted London estate agents Our dedicated teams invest 150–200 hours of focused work to secure the right long-term tenant for your property. But our commitment doesn’t stop once the tenancy begins. We take the time to build strong relationships with your tenants, helping to ensure they are well looked after and remain in your property for as long as possible.

And when the time does come for a tenant to move on, our proactive approach means we can act quickly to secure a new tenant and minimise any void period.

This guide has been designed to share some of our insider knowledge and practical advice on successfully managing your property, building

a positive and lasting relationship with your tenant, and making the most of the support available to you throughout the tenancy.

For a landlord, even a short void period can have a significant impact on your returns. In fact, just three weeks without a tenant can equate to the management fee you would pay us for an entire year.

It’s one of the reasons why so many professional landlords choose to work with Fraser & Co because our focus is simple, we protect your investment, reduce voids and deliver a first-class service from start to finish.

Tenant management A tenancy is a partnership between the occupier and the manager of the property.

A successful partnership results from great communication between both parties. Not only are first impressions crucial but tenants will then need regular contact, help and support throughout the years of living in the property.

If you are managing the property yourself, you need to be on hand and accessible to help your tenants with any questions and offer speedy resolutions when issues arise. This is why all of our property managers work in an office no more than 15 minutes away from the properties they manage.

Tenants are excited when they first move into their new home and want to be proud of where they live. Great property management is about enhancing this feeling, with good communication from check-in to check-out.

Our aim is to help your tenant keep their property in the best possible condition. Whilst they are in charge of the everyday upkeep of their home, we are here to stay on top of maintenance with your tenants as our eyes and ears.

The property needs to be fully prepared before the new tenants move in and it is essential that everything is in working order with access to all manuals and useful information, as well as being professionally cleaned.

Tenancy changes Where a property is let to sharers under a joint tenancy, notice given by one tenant is sufficient to bring the tenancy to an end for all tenants, even without their consent.

You may choose to accept notice on behalf of all tenants, or alternatively, grant a new tenancy to the remaining tenants and any replacement tenant. Our specialist team is on hand to guide you through this process.

Property management Just like your own home, your investment will need regular servicing, updating and maintenance.

Making a success of your investment needs a plan, a list of routine jobs and good habits. This is best approached with a preventative maintenance plan.

A preventative maintenance plan differs from one property to the next - a house or a converted flat being the most complex, but even a brand-new flat needs regular work, especially if your property has a garden.

This proactive approach has several advantages, such as:

We have an in-house team of maintenance engineers who are on hand to keep costs down and help stay on top of the little to mediumsized jobs, ranging from loose toilet seats and hinges to jet-washing patios. We can also help prolong the life of the boiler by organising a service at the same time as the annual gas safety certificate is carried out. These preventative measures reduce the likelihood of costly repairs and put the tenant’s mind at ease. The rewards are reliable, long-term tenants, steady rental income and your asset continuing to gain value.

Maintaining a better relationship with the tenant Helping tenants look after the property Keeping costs down in the long run Making sure that the property remains attractive to tenants

Safety and legal compliance The work we do in finding the tenant, setting up the tenancy agreement, helping arrange appropriate certificates and check-in formalities covers you for many of the risks at the start of the tenancy.

There are now over 170 pieces of legislation for a landlord to keep on top of, the key ones being: Electrical safety All rented properties require an Electrical Installation Condition Report to be carried out every five years. You will also need to provide a copy to your tenant within 30 days of the certificate being issued. Please remember to check the Competent Person Register before instructing a contractor, to confirm that they are competent and qualified to carry out the EICR and any remedial works.

Annual gas safety check Any property containing a gas supply needs to have an annual Landlord’s gas safety inspection. You will also need to provide a copy to your tenant within 28 days of the certificate being issued, otherwise you may not be able to serve notice to end the tenancy. If there is a communal boiler in the building, supplying heat and hot water to the property, you will need to provide a copy of the communal boiler gas safety certificate to your tenant.

Risk of Legionnaires’ disease Legionella can develop when water becomes stagnant. If your property has been empty for a while, we recommend carrying out a Legionella risk assessment.

Property inspections Regular visits to the property during the tenancy will help you make sure the property is being looked after, there are no maintenance issues the tenant has missed and the smoke alarms are in working order.

Smoke alarms and carbon monoxide detectors Your property needs to be fitted with a smoke alarm on each floor and a carbon monoxide alarm in any room with a gas appliance. Both smoke and carbon monoxide alarms will need to be tested and working on the day of movein and whenever you visit the property.

Any expired alarms must be replaced before the tenancy starts. If you have a more complex fire alarm system in your property, it may need sixmonthly servicing with a specialist contractor and tenants will need to be provided with information on how to operate and test the alarm system when they first move into their home. Failure to do this could invalidate your insurance policy.

‘Unsafe’ rooms Open plan layouts, conversions and refurbishments carried out without Building Control approval can unintentionally result in the creation of ‘unsafe’ rooms. An ‘unsafe’ room is typically a bedroom, where the only means of escape is through another room, such as a kitchen, which would trap the tenants if a fire were to occur there.

Hazards may arise from a variety of issues, such as damp and mould, excess cold, fire safety risks, overcrowding, inadequate lighting, pest infestations or problems with water supply, sanitation and drainage.

Health and safety for rented homes

Once hazards are identified, the local authority may use its enforcement powers to require improvements or remedial works to be carried out, within specific timescales. In some cases, a Prohibition Order may be issued. This can restrict or prevent occupation of all or part of a property, for example, where a property is overcrowded or where necessary repairs cannot safely be carried out while the property is occupied. Failure to comply with any notice may result in a civil penalty of up to £40,000.

The Housing Health and Safety Rating System (HHSRS) is the framework used by local authority environmental health officers to assess housing conditions. Introduced under the Housing Act 2004, it is the system councils use when inspecting residential properties.

The central principle of the HHSRS is that a home, including the building itself, any outbuildings, gardens or outdoor areas and the means of access, should provide a safe and healthy living environment for tenants.

During an inspection, officers assess potential hazards within the property using the HHSRS and apply a points-based scoring system to determine the level of risk. If the assessment identifies a Category 1 hazard, the local authority is legally required to take action to ensure the issue is addressed. Where a Category 2 hazard is identified, the authority has the discretion to take action if it considers it appropriate.

Our Property Management team are on hand to act quickly with minimal disruption should an issue arise, they are available to offer expert advice, ongoing support and excellent solutions.

Landlords choose our Property Management service because it comes highly rated, and the fact that their personal Property Manager is never more than 15 minutes away from any property in their portfolio provides peace of mind.

To ensure tenants are kept safe in the event of a fire, appropriate measures such as alternative escape routes, automatic fire detection and warning systems, fire doors or other fire safety provisions would need to be installed. Where these additional fire safety measures are not in place, the ‘unsafe’ room must not be used as a bedroom.

Houses of multiple occupancy and licensed properties We recommend staying in regular contact with the Local Authority to understand any changes to licensing schemes that affect your property.

The licence may require you to send a receipt to your tenant as soon as you receive a rental payment

If you rent to three or more unrelated tenants it’s likely that your property will be considered a ‘House in Multiple Occupation’ (HMO) and there are more legal requirements for this type of let. In some instances, regardless of how many tenants you have, you may also require a licence from your local authority in order to rent your property out. Licensing schemes are constantly changing, so we are here to help you keep on top of new schemes or amendments to existing ones.

The licence, certificates and your contact details will need to be displayed prominently in the property

There are a few differences when you manage a property with a licence or a HMO: You may need additional certificates such as a fire risk assessment and PAT test There is a requirement for more frequent formal inspections when the property is licensed Fire safety is very important and you, not the tenant, will need to regularly test and service any fire safety precautions; such as, smoke alarms, fire alarm systems, heat detectors, fire blankets, fire doors, thumb turn locks and extinguishers, to ensure that they remain effective if there is a fire

Provide adequate provision for refuge storage and recycling It is quite usual for the local authority to inspect your property and check its condition. They particularly look for issues with damp, mould and condensation, fire safety, waste management, security and check that the right number of people are living in the property. If they have any concerns, they can issue an improvement notice which has to be acted on immediately.

Not having a licence when one is required or not following the conditions of a licence is a criminal offence and can lead to substantial fines. Managing a HMO or a property with a licence can be very time-consuming and requires prompt action. We strongly recommend you ask us to manage any HMO or licensed properties.

Additional fire safety Communal areas of buildings

Building and contents insurance

If you own a property which shares a communal hallway with one or more residential properties, you will need to establish who the Responsible Person for the building is - which will normally be the freeholder or block manager, as they will be responsible for fire safety in the common parts.

We would strongly recommend taking out both Building and Contents insurance when letting out a property, to provide you with complete protection. Buildings insurance covers the cost of repairing the structure of your property, for example, damage caused by bad weather, fallen trees, frozen or burst pipes, fires and explosions.

Contents insurance protects everything you have supplied in your property, such as electrical appliances, white goods, furniture, carpets etc.

Types of fire safety measures required in the common parts could be: Annual Fire Risk Assessments Fire alarm systems, fire doors, emergency lighting, sprinkler systems and EICR for the common parts Testing and servicing alarms and fire safety equipment regularly - and maintaining records Providing a copy of the Fire Evacuation Plan and fire safety information to the tenants annually Attaching the Fire Evacuation Plan to the wall in the common parts of each floor Higher-risk buildings If you own a property in a building that is at least 18 metres or seven storeys high, and contains at least two residential units, please speak to us for further advice.

Help, advice and ongoing support We want your relationship with the tenant to be a success and our objective is to help you keep the tenant in occupation for as long as possible.

We will be right behind you throughout the tenancy and will stay in regular contact with you.

Our role is to make sure rent is paid and that you and the tenant are happy. Should your tenant wish to give notice to end the tenancy or change the Tenancy Agreement in any way, we ask that you contact us immediately. Our agreements are finely tuned to look after your best interests and we are keen to manage these processes for you.

By following the advice given, your property will remain in good condition and will rent quickly without a void period, should you need to find new tenants.

Landlord fees We offer a straightforward and transparent commission structure which allows our Landlords to spread the payment of our commission over the duration of the tenancy. Unlike most agents our commission is deducted from the rent so that our Landlords start receiving an income for their property as soon as the tenant moves in. Rest assured, as ​​ a member of The Property Ombudsman (TPO) for lettings we subscribe to TPO’s Codes of Practice. This Governmentapproved independent redress scheme gives consumers additional protection beyond that required by law.

Our clients and customers have peace of mind that there is free and fair redress available in the unlikely event of an unresolved dispute involving our agency. As regulated members of safeagent all client money we hold is protected by safeagent Client Money Protection Scheme. This gives our clients peace of mind and financial protection that their money will always be safe in out hands.

Under our comprehensive Premium Management Service we include all of the following within our commission rate of 18% (21.6% incl VAT).

Management services Our services at a glance for full peace of mind.

We thoroughly advertise your property We have a team of local lettings experts who will spend an average of 200 hours working to find you the best Tenant and arrange the tenancy We carry out viewings six days a week and out of hours if requested We access 10,000 corporate Tenants per annum through our Corporate Services team We negotiate terms and draw up a bespoke Tenancy Agreement We work with a leading referencing company exploring a Tenant’s credit and rental payment history and employment status We arrange for any pre-tenancy work to be carried out to the Property We hold all client monies securely in a designated and audited client account protected by the Safeagent Client Money Protection Scheme We arrange an independent inventory, check-in and check-out - from £144, depending on the size of the property and the level of furnishing We provide safekeeping of your keys throughout the tenancy We can arrange for a Carbon Monoxide detector and smoke alarm to be installed We ensure that standing orders for Tenants are set up We issue monthly rental statements and collect rent We provide help in recovering rent arrears in the very rare event it happens We provide an annual statement of account, if required We agree the terms of tenancy and rent reviews where possible We can offer a Design & Refurbishment consultation and manage any projects We provide access to a Landlord Portal We will keep you updated with any relevant changes in legislation We provide direct access to a dedicated local Property Management team We visit the Property during the tenancy and produce a comprehensive annual report We will provide help if you make a claim under your property insurance policy We provide a 24 hour emergency service for you and your Tenants We have our own Fraser & Co maintenance engineers available to visit your property at short notice Where necessary, we instruct and pay contractors on your behalf We ensure all contractors have the correct insurance prior to commencing any work We arrange works and give access to best value contractor prices We arrange repairs, maintenance and refurbishments, as required We review the check-out report, advising on deductions from the deposit and agreeing any Tenants payments We will continue to manage your property through any vacant periods at no further cost whilst we find a new tenant for you A professional check-in included in our fee - £156 A professional inventory included in our fee from £156 - £474 A professional check-out included in our fee - £156 An Energy Performance Certificate (EPC) included in our fee - £144 An Annual Gas Safety Certificate (GSC) included in our fee - £102, a boiler service and gas safety certificate is a minimum of £190 An Electrical Installation Condition Report (EICR) included in our fee from £220 - £330 Installation of Carbon Monoxide (CO) detector included in our fee - £60 for the first alarm and £30 per additional alarm, or installed at the same time as the GSC for £136

Premium Management

Full Management

Rent Management

In addition to our Premium Management service, we also offer a comprehensive all-inclusive Full Management service at 16% (19.2% incl VAT) and a Rent Management service which is charged at 11% (13.2% incl VAT) as detailed above. By choosing either of these services, the following additional charges would apply: Professional Inventory Report - Upon your instruction, we will arrange for an inventory clerk to prepare an inventory for your property. The cost of the inventory starts from £144, depending on the size of the property and the level of furnishing.

Check-in and check-out - There will be a charge for an independent inventory clerk to carry out a check-in report at the commencement of the tenancy. Costs start from £156, depending on the size of the property and the furnishing level.

There is a contribution from £156 towards the clerk checking the property at the end of the tenancy.

International Bank Transfer Fee - When we are instructed to transfer funds overseas, there will be a charge of £30.

Electrical Installation Condition Report - Upon your instruction, we will arrange for an electrician to visit your property and carry out the relevant safety checks. The cost of the report varies from £230 to £330, depending on the size of the property.

Energy Performance Certificate - Upon your instruction, we will arrange for an energy assessor to visit the property, assess the energy rating and issue the certificate at a cost of £144.

Gas Safety Certificate - Upon your instruction, we will arrange for a registered engineer to visit your property and carry out the relevant safety checks before issuing the certificate which will cost £102. A boiler service and gas safety certificate is a minimum of £190.

Carbon Monoxide Alarm - Upon your instruction, we will arrange for the installation of a CO alarm for £60 for the first alarm and £30 per additional alarm, or installed at the same time as the GSC for £136.

Property Licence Application Service - Should you require a licence for your property, we are able to help with the application from £375.

Early Surrender of Tenancy - If you agree and your Tenant agree to surrender the Tenancy

outside the contractual terms of the Tenancy, an administration charge of £360 will be charged.

Where we are required to deduct basic rate tax and account to HMRC for any landlords who live outside the UK, as we have not received an exemption certificate from HMRC, we will charge £60 for every quarter we provide this service.

In addition to our all inclusive services and costs as detailed above, we also offer a Full Management service at 15% (18% incl VAT) and a Rent Management service at 10% (12% incl VAT).

By choosing either of these services the following fees would apply in addition to the above: A New Tenancy Administration Fee of £300 contributes towards drawing up the tenancy agreement, collecting references on the new tenant, protecting the security deposit with a Government-authorised Scheme and providing the tenant(s) with a Deposit Certificate and Prescribed Information.

For Non-Housing Act Tenancy - a Renewal Fee of £240 is paid in order to negotiate contracts, amend and update terms, arrange a further tenancy and re-register the security deposit with a government-authorised scheme. It provides the tenant(s) with a Deposit Certificate and Prescribed Information within 30 days of the start of the tenancy.

All prices include VAT A Rent Review Fee of £240 will be paid when we are required to serve a Section 13 notice to review the rent during a Periodic tenancy.

For any change of Tenant when an assignment or variation of the Tenancy is applicable, an administration fee of £240 is payable.

To organise additional keys to be cut where required, there will be a charge of £20 Where additional Property inspections are required under the Property licence conditions, there will be an additional £100 charge per visit.

If you wish to sell the Property, move a family member in, or give notice on fulltime students in order to relet to students, we will serve a Section 8 on your behalf; the administration cost will be £240.

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