Regulations and Fees

Regulations and Fees

Professional and ethical

Trust is an important part of estate agency and we want to send a clear message to our clients and customers that we are a professional company acting ethically at all times. As well as our own stringent in-house code of conduct, we are compliant with the following governing bodies: The Property Ombudsman; Safe Agent, TDS (Tenancy Deposit Scheme) and CTSI (Chartered Trading Standards Institute).

 

 

Letting Regulations for Landlords

Keeping you informed of your legal obligations as a landlord.

Electrical Equipment & Systems

Landlords are obligated to ensure that electrical equipment and systems in the property are safe. You may be liable if the tenants are harmed or suffer damage to their own goods. The following Acts and Regulations detail this: The Landlord and Tenant Act 1985, The Housing Act 2004 (Housing Health and Safety Rating System), The Electrical Equipment (Safety) Regulations 1994, and the Plugs and Sockets etc. (Safety) Regulations 1994, both of which come under the Consumer Protection Act 1987. Under Part P of Building Regulations, certain electrical work is required to be carried out by a Competent Person. Having portable appliance testing is always best practice for landlords.

 

https://www.gov.uk/government/consultations/electrical-safety-in-the-private-rented-sector

EPC

Energy Performance Certificates are needed whenever a property is built, sold or rented. You must order an EPC for potential buyers and tenants before you market your property to sell or rent. An EPC contains information about a property’s energy use and typical energy costs and recommendations about how to reduce energy use and save money.

 

An EPC gives a property an energy efficiency rating from A (most efficient) to G (least efficient) and is valid for 10 years. To let a property your efficiency rating must be between A and E.

 

https://www.gov.uk/buy-sell-your-home/energy-performance-certificates

Fire

The furniture supplied within a rental property must comply with fire resistance requirements as defined within The Fire and Furnishings (Fire) (Safety) Regulations 1988 (as amended).

 

The regulations apply to beds, headboards of beds and mattresses, sofa-beds, futons and other convertibles, nursery furniture, garden furniture suitable for use in the dwelling, scatter cushions and seat pads, pillows, loose and stretch covers for furniture. They do not apply to furniture made before 1950, bedclothes including duvets, loose covers for mattresses, pillow cases, curtains, carpets and sleeping bags.

 

http://www.legislation.gov.uk/uksi/1988/1324/contents/made

Gas

The Gas Safety (Installation and Use) Regulations 1998 require a gas safety check to be carried out on every gas appliance/flue. This will ensure gas fittings and appliances are safe to use. A certificate will be supplied by a Gas Safe registered engineer stating a pass or a fail, and the appropriate action will be required should the check fail. The certificate is valid for 12 months and must be provided to the tenants prior to the commencement of the tenancy. Keatons will not allow tenants to move in without a valid certificate.

 

http://www.gassaferegister.co.uk/

Smoke and Carbon Monoxide Alarms

The Smoke and Carbon Monoxide Alarm Regulations 2015 require that a working smoke alarm be fitted on every floor and a carbon monoxide alarm in rooms containing a solid fuel appliance.

 

If smoke alarms are present, it is imperative that they are maintained. A clause within the tenancy agreement will typically inform the tenants of their responsibility to keep it well maintained and the battery to be replaced when necessary.

 

https://www.gov.uk/government/publications/smoke-and-carbon-monoxide-alarms-explanatory-booklet-for-landlords

 

Tax and the Non-Resident Landlord Scheme

You may be subject to income tax during the rental period and capital gains when you sell. If you are in any doubt, or you would prefer not to complete your own self-assessment tax return, then we advise that you consult an accountant.

 

https://www.gov.uk/renting-out-a-property/paying-tax

 

If you reside overseas, we are required by HMRC to comply with the non-resident landlord scheme. Unless the landlord provides a NRL form to HMRC, we will be required to deduct the basic rate of income tax from the rent. Keatons can provide and assist you with the required information. Once HMRC approval is given we will able to transfer rental income without deductions.

 

http://www.hmrc.gov.uk/international/nr-landlords.htm

http://www.hmrc.gov.uk/cnr/nrl1.pdf

 

Tenancy Deposit Protection

Legislation requires security deposits for Assured Shorthold Tenancies to be registered with a government approved scheme. Keatons can register the deposit on behalf of the landlord. We are members of the Tenancy Deposit Scheme.

 

https://www.gov.uk/tenancy-deposit-protection

https://www.tenancydepositscheme.com/

 

Property Licensing

You may be required to apply for a licence to rent your property. Regulations vary depending on the Borough and style of property.

 

https://www.gov.uk/private-renting/houses-in-multiple-occupation

 

Landlord Services and Fees

Are you considering letting your property in London, but you’re not sure what it takes? Please read our list of useful information and advice on property management, as well as the services that Keatons can offer you.

 

 

Services and charges — Sole agency*
Service Comprehensive Financial Essential
**Term 1 16.8% (14%+VAT) 13.2% (11%+VAT) 9.6% (8%+VAT)
***Term 2+ 14.4% (12%+VAT) 10.8% (9%+VAT) 7.2% (6%+VAT)

 

Marketing
Progression
Tenancy
Management

 

*Charges are based on a minimum tenancy term of 12 months.
**Term 1 is the length of the first tenancy. ***Term 2+ is applicable when tenants remain after Term 1.
An additional 2.4% will be added to any of the above sole agency charges should you instruct more than one agency.
Comprehensive and financial service fees are taken monthly for the duration of the tenancy term. Essential service fees are payable up front.

Download our printable guide: Landlord information brochure

Landlord charges and tenant information

 

Tenants Information

If you would like to proceed with a property through Keatons then the following payments will apply:

 

Permitted Payments:

  1. Application payment – One week’s rent. This is required to reserve the property and submit your offer to the landlord. If accepted, this amount will be deducted from the total balance due. The payment is refundable if your offer is not accepted.
  2. Deposit – Five week’s rent (six week’s rent if the annual rent exceeds £50,000).
  3. If you are late in paying your rent you may be charged interest on the rent outstanding if it is owed for more than 14 days at a rate of 3% over the Bank of England base rate.
  4. Changes to the tenancy agreement, for example, a change of tenant or permission to keep pets at the property, will be charged at £50.00 (and reasonable costs if these exceed £50.00).
  5. If you lose your keys or other security device you will be charged reasonable costs incurred by the landlord to replace these or the locks at the property.
  6. If you leave or request to terminate the tenancy early, you will be liable to pay for any fees for re-letting and outstanding rent owed to the Landlord.
  7. Other charges in addition to the above that are applicable to tenants where required under a tenancy agreement: Rent, payments in respect of utilities, communication services, TV licence, council tax.

 

For any current tenancies with Keatons that commenced prior to the 1st June 2019 the following charges will apply under your tenancy agreement until 31st May 2020:

 

Tenancy extension fee – £180.00 per tenant

Change of occupant during tenancy – £354.00 per tenant

Reference fee – £30.00 per tenant

 

All charges are inclusive of VAT at the prevailing rate.

 

Keatons are members of Safe Agent, The Property Ombudsman and The Tenancy Deposit Scheme and adhere to the regulations prescribed by Trading Standards and UK Law.

 

Client Money Protection

Safe Agent Certificate