Payment schedule and accounts for full management service
- Payments to landlords: these are made by The Agent’s bank Faster Payment Service after the month end accounts are drawn up and on or before the fourth banking day of the month.
- Month end accounts: during the first four banking days of a month landlord accounts are drawn up to the last day of the preceding calendar month and are sent to The Landlord by email and if needed, at an extra charge, by post. If the last day of the calendar month is not a banking day or it was February then the month end accounts are drawn up to the first banking day following. (Why is February special? some banks seem unable to pay a month-end standing order on 28th February and pay it the next banking day.)
- Repairing fund: while The Agent manages The Landlord’s property a fund is retained and managed, in The Landlord’s name, to cover emergency repairs and any costs chargeable to the landlord. The size of the fund is negotiable depending on the age and condition of the property, type of let and size of portfolio and is typically £150 for the first property and steadily reducing to £25 per property for the large portfolios.
The detailed list of activities that are funded by the fees listed in this “Headline rates” section are in the Full Management contract that the Landlord agrees. The vast majority of charges are covered by this “Headline” section.
- Letting Fee equivalent to 50% of first month’s rent with a minimum of £250. The Letting Fee will be payable for each agreement granted to new tenants.
- If the property and tenancy is under full management a Management Commission equivalent to 11% of rental received.
- Administration fees: Checkin fee £65; Applicant verification, due diligence and administration £50 for 1 applicant, £100 for 2 or more; guarantor verification, due diligence and administration £50 for 1 applicant, £100 for 2 or more
- An Administration Fee of £85 will be payable on the occasion of each renewal of an existing agreement.
- Preparation of Inventory. Charges for preparation of an inventory and schedule of condition are £35 per hour (including office time), with a minimum charge of £95. Your Lets will be pleased to provide an estimate for the property upon request.
- Sale of Property. In the event of a tenant or prospective tenant introduced by Your Lets completing the purchase of the property at any time, a commission will be payable by The Landlord to us equivalent to one and one half percent of the selling price.
- Other charges are levied in various circumstances – see detailed Fees below.
Fees for general circumstances
- Rent Increase: £35 for each rent increase on a sitting tenancy
- Withdrawal: if The Landlord withdraws instructions within two months prior to The Agent introducing the first tenant £250
- More than one landlord or payee: £35 once off and £10 per month accounting fee per extra landlord or payee receiving payments or accounts
- Non-email: if The Agent cannot communicate with The Landlord or other payees by e-mail or the Landlord requests printed and posted statements there is a fee of £10 per month per month per Landlord and representative
- Year-end income and expenses: a report at The Landlord’s year-end, with income and expenditure fully nominal coded and categorised is £50 plus £5 per property
- Terminating tenancy: if an ongoing tenancy is brought to an end at The Landlord’s request, for serving a straightforward notice and covering letter the fee is £75.
- Check-out: if a tenancy is brought to an end at the request of The Landlord or if the tenancy about to end is not to be followed by another at the request of The Landlord the checkout fee is £75.
- Landlord transfer: if the named landlord on a property is to be changed the fee is £50 plus a further £50 if there is an ongoing tenancy
- Deposit disputes: for anything beyond a simple submission and if pursued at The Landlord’s request time-based fees are charged – see 8 in the section below.
- Non-resident landlords: £45 per year per Landlord and thereafter for each non-exempt Landlord £10 per month accounting fee. For exempt Landlords ie with a NRL Exemption Certificate there is an annual £45 fee. NB A non-resident landlord means someone resident, for the purpose of HMRC’s Non-Resident Landlord Scheme, outside the UK.
Fees for property management services
- Maintenance during full management tenancies: for activities estimated at under £150 selected tradesmen are engaged on behalf of The Landlord and their charges raised to The Landlord’s account. NO markups or other commissions are charged unless the tenancy is in a delinquent condition (the tenant not paying rent) and The Landlord is not diligently proceeding with due speed to eviction in which case The Agent reserves the right to raise charges as though it were a void period as per item 5 below.
- Maintenance during full management tenancies: for activities estimated at over £150. If, by mutual agreement, The Agent deals with it then selected tradesmen are engaged on behalf of The Landlord and their charges raised to The Landlord’s account. The Agent will raise further charges as though it were a void period as per item 5 below
- Small works maintenance during full management tenancies: if The Agent’s staff are able to effect a remedy, during a property visit made to identify or validate a problem or during a routine inspection, a call out charge, currently £35, is raised to The Landlord’s account.
- Property improvements: where tradesmen or professionals are engaged on work that is clearly not property maintenance but rather improvements there is a fee of 15% of the total improvements costs (in all cases paid by The Landlord) or, by agreement, a time-based charge
- Maintenance during voids: when by mutual agreement maintenance is performed in void periods there is a fee of 15% of the total maintenance costs (in all cases paid by The Landlord) or, by agreement, a time-based charge.
- Frost protection during voids: when, by prior mutual agreement, this is done there is a fee of 15% of any energy supply costs and a time-based callout charge of at least £35 per visit. During periods of heavy snow or other very bad weather each visit may have to be individually agreed.
- Ready to rent report: a written statement of what is needed to make the property ready to rent. Charged on a partner time basis at £75 per hour (on site and office time) with a minimum of £75
- Other or extraordinary activities the charges throughout are based on the Agent’s hourly rates and expenses – or AHRE for short – see 9 below. If the Landlord or circumstances demand extraordinary activities or one-off or specialist work not identified above those AHRE will be applied. Examples include: a fire, flood or storm-damaged property for which the Landlord requests multiple visits or communications regarding his insurance or whatever; court appearances as a witness; or extensive deposit claim work. (NB those were examples, not an exhaustive list.)
- The Agent’s hourly rates and expenses (AHRE) are applied for work that is not listed elsewhere. Different rates apply for partners (£75 per hour) and staff (between £24 and £55 per hour). Requested or extraordinary visits to properties will attract a £35 call out fee which includes the first half hour of attendance. All those charges will be increased by 50% for out of hours or 100% for seriously un-social hours such as 10pm to 8am, bank holidays etc. Travel required for site visits will be charged at cost. Mileage will be charged at the rate approved by HMRC – 45 pence per mile at March 2018.
Effective from 1st June 2019, E&OE