Terms and Conditions

Letting

Fees:
Our letting fee is 10% +VAT of the rental for the duration of the tenancy.   This includes any extensions and renewals thereof, whether negotiated by HLR or another party.  These fees are due as per rental payments during the tenancy, including any extensions or renewals and remain payable by you, should you sell your interest in the property.  It is therefore advisable to obtain an interest from the purchaser if your property is sold.
Our fee for a short term letting of three months or less is 15%+VAT as above.

Services

References:  We will find a tenant acceptable to you, negotiate terms and obtain appropriate references.
Deposit:  We will obtain a deposit from the tenant and register it with the D.P.S (Deposit Protection Service).
Rent Collection:  We will collect the rental which will be passed on after five working days of receipt with our agreed fees deducted.  If the rental is not collected by HLR our fees are payable within 21 days of the due date.  If our fees are not paid within this period interest will accrue on a day basis at 4% per month above the base rate of Barclays Bank plc.  Interest will accrue from the date the commission falls due to the date it is paid.
Tenancy Agreement:  We will draw up a Tenancy Agreement on your behalf at an administration charge of £175+VAT and £75 +VAT for any extensions or renewals.

Letting & Management Service

Fees:  Our Letting and Management fee is 16% +VAT of the rental for the duration of the tenancy.  This includes any extensions and renewals, whether negotiated by HLR or another party.  These fees are due as per the rental payments during the tenancy, including any extensions or renewals.  The period of management will cover the period of a tenancy.

Services
These include the above Letting Services if required and in addition:
Repairs:  We will manage the day to day running of the property and organise and oversee any minor repairs should they be required.  We will obtain estimates and account to the Landlord on a quarterly basis.  A fee of 10% plus VAT will be levied against the cost of redecoration or refurbishment  undertaken at the Landlord’s request which HLR will organise and oversee.
Float:  We will retain a float which is accounted for on a quarterly basis. This will cover any outgoings on the Landlord’s behalf including Service Charges, Insurance Premiums and minor repairs.  We will carry out any necessary maintenance, repairs and servicing of appliances up to a maximum cost of £500 per item.
Inspections:  We will carry out bi-annual Inspections of the property and report to the Landlord.
Dilapidations:  We will arrange for a schedule of Dilapidations to be prepared at the end of the tenancy and obtain quotations for any works that may be required.  HLR will liaise with both parties to reach an agreement with regard to any cost that are required to be deducted from the Deposit held.  We will then arrange and oversee the works that have been agreed to.
Utilities: We will arrange for utilities to be changed where possible.  BT or Sky accounts need to be changed by the account holder.
Notice Period for Management Service:
There is a minimum management period of six months with a 60 day advanced written notice period to terminate this service.

Sales
In the event of a sale arising from an introduction by HLR our fees are 2% +VAT of the purchase price.


Tenancy Agreements

Assured Short hold Agreement: 
This Agreement is governed by the Housing Act of 1988 and the Amendment if this Act which was introduced in February 1997.  It is used when a Property is let to an Individual(s) and the rental does not exceed £100,000 per annum.

Standard Tenancy Agreement:
This Agreement is used for all other tenancies that are not governed by the above Act, for both individual and company lets.

Deposit
A deposit is taken from the Tenant (usually six weeks rental) to cover any dilapidations that may occur and this is held with the D.P.S (Deposit Protection Service).

Inventory
This is a very important part of the letting process.  We would strongly recommend that a professional inventory clerk be appointed to prepare an inventory of the property.  This will then be checked and agreed by both parties at the commencement and termination of the tenancy.  Once the inventory check-out has taken place, a schedule of dilapidations will be sent to both Landlord and Tenant for them to determine what deductions (if any) should be made from the deposit held.  If the property is managed by HLR we will deal with all aspects of the dilapidations and will liaise with both parties until agreement is reached.

Tax for Overseas Landlords
We are no longer required to withhold basic rate tax on rental for overseas Landlords since the introduction of Self Assessment provided written consent is received by HLR from the Inland Revenue.  If you are not eligible for Self Assessment, we will continue to withhold basic rate tax of 23% which will be paid to the Inland Revenue on a quarterly basis.  Professional advice should be obtained.

Insurance
Landlords are responsible for both building insurance and their own comprehensive contents insurance during the term of the tenancy.  The insurance company must be informed that the property is rented, giving all the relevant details.

Consents
All relevant consents must be obtained in writing to sub-let your property.  These include mortgage consent if applicable and consents from the head lessors or in the case of as leasehold property, the freeholder. 

Prior to Letting
The Landlord must ensure that the property is professionally cleaned throughout.  All machines, appliances and heating/water systems should be in complete working order and recently serviced.  (See attached “Regulations” below).  Clear instructions for use must be left.  Carpets, Curtains and upholstery should be professionally cleaned together with all linens, towels, blankets/duvets.  Windows should be cleaned and gardens well maintained.  HLR reserve the right to instruct professional cleaners on behalf of the Landlord, if they deem it necessary, without prior consent.

Regulations
The following regulations now apply.  Your property must now comply with these regulations at the commencement of the first tenancy as it is a criminal offense not to do so.

Gas Safety (Installation and Use) Regulations 1994
As from 31 October 1194 all Landlords must ensure that all gas appliances are serviced and maintained by a CORGI certified installer.  This service and maintenance must be carried out at least once every 12 months.  Moreover, a record of safety checks must be kept and any defects identified must be remedied as soon as practicable.  Failure to carry out such obligations under law could result in a £5,000 fine.

The Furniture and Furnishings (Fire) (Safety) Regulations 1988 and The Furniture and Furnishings (Fire) (Safety) (Amendment) Regulations 1993
This piece of legislation states that all Landlords must ensure that any furnishings included in their rental properties are fully fire retardant (“Furnishings” will be seen to include: upholstery, upholstered furnishings, loose fittings, permanent or loose covers, beds, headboards, mattresses, pillows and cushions – not curtains or carpets).
Furniture made pre 1950 is exempt from these regulations and furniture made and supplied after March 1990 is likely to have been constructed to comply with the fire safety regulations.
Failure to comply with these Regulations could result in a fine (up to £5,000) or six months imprisonment.
The Regulations place responsibility on the Landlord for ensuring that the Property complies.  For this reason it is necessary for the Landlord to warrant that the Property complies or to instruct the Managing Agent to authorise the completion of a check of the contents at the Landlord’s expense.  A full copy of the Regulations is available from the Managing Agent on request.

Electrical Equipment (Safety) Regulations 1994
The Plugs & Sockets etc (Safety) Regulations 1994
These regulations came into force on 9th January  1995 and are enforceable in the UK under the Consumer Protection Act 1987.
These regulations affect any person who supplies electrical equipment in the course of a business.  Thus, the safety of any electrical equipment that is supplied as part of a furnished accommodation that is let in the course of a business is controlled by the 1994 regulations.  It is therefore necessary that a Landlord must ensure valid NICIEC Certifications are issued to confirm the electric’s in their property comply as detailed below:

The Electrical Equipment (Safety) Regulations 1994 – A test to check the wiring from each appliance to the main fuse board and to check the general wiring/circuitry meets current regulations – required bi-annually.

The Plugs & Sockets etc (Safety) Regulations 1994 – A test to check the plugs and sockets on each appliance meet current regulations – required annually.