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Ingles Manor Castle Hill Avenue, Folkestone, Kent, England, CT20 2RD |
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Prospectus |
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CASTLES PROPERTY MANAGEMENT (Michael Golding)
Property Management & Residential Lettings Service
Prospectus
RESIDENTIAL LETTINGS AND MANAGEMENT (LANDLORDS) TERMS AND CONDITIONS
1.0 Castles Residential Letting Service
Castles Property Management offers a personal and professional letting and management service based on many years experience in this demanding and ever changing market.
1.1 Without any obligation we will meet with the owner, view the property and discuss the letting potential. We will comment on any requirements that may be necessary for the letting and discuss the legal aspects of letting. This service is free.
1.2 We will advertise regularly for suitable applicants and arrange accompanied viewings of the property
1.3 We shall take up references for potential tenants prior to their occupation. For employed tenants we will seek references from an employer or, if self-employed, an Accountant or Solicitor. Bank references or credit checks will be made.
1.4 We will prepare a comprehensive Assured Shorthold Tenancy Agreement and issuing the Statutory Notices. We will sign all relevant documentation on the owner's behalf for agreements up to 3 years, unless otherwise instructed. A draft copy of our standard Agreement can be made available to owners prior to the tenancy and although professionally drawn up it is suggested that it be shown to the owner's Solicitor
1.5 We will ensure the inventory, provided by the owner, is checked and signed for by the Tenant (we can arrange for an inventory to be prepared if required).
1.6 For fully managed properties, we will collect all rents, attend to all outgoings on your behalf (funds permitting) and account to you at the end of each month.
1.7 We will collect from the tenant a deposit, normally one month's rent, which we will hold in trust for the tenant. This will be held until the tenant vacates and will be utilised to settle against any dilapidations. A reduction in the deposit may be made against an unfurnished property or in any other circumstances if agreed by the Owner.
1.8 We shall ensure the general upkeep of the premises with regular quarterly visits and at other intervals as is deemed necessary
1.9 We shall keep the owner fully advised of any change of circumstance, including changes in tenants, repairs and maintenance requirements and shall authorise any minor works deemed necessary or any emergency work that may occur.
1.10 When major rectification is required, estimates will be sought and the owner consulted where practicable.
1.11 We will keep the utility companies and local Council advised of any changes in tenants.
2.0 Owners Obligations
It is the Landlord's responsibility to advise any interested third party that the property is to be let:- mortgage companies, insurance companies etc.
2.1 Tax
It is the owner’s responsibility to advise the tax office of any income derived from the letting.
2.2 Insurance
The owner should ensure the property and contents are kept fully insured at all times and advise the insurance company of the intention to let. It is the tenants responsibility to insure their personal effects and any furnishings not belonging to the owner
2.3 Safety
a) Soft Furnishings To ensure that all soft furnishings, including beds, three-piece suites, conform to the Furniture and Furnishings (Fire) (Safety) Regulations 1988. After the 1st January 1997 all soft furnishings will have to meet these regulations whether or not the property has been previously let.
b) Gas Appliances To ensure that all gas appliances are serviced annually and that a record of the maintenance checks are kept and available for inspection by the tenant. This is a legal obligation.
c) Carbon Monoxide/Smoke Detectors Whilst not a legal requirement yet the fitting of carbon monoxide and smoke detectors is thoroughly recommended.
d) Electrical Appliances To ensure that all electrical appliances are safe and conform with latest Safety Regulations.
e) Equipment To ensure that any equipment in the premises and intended to be included in the rental agreement is safe and fit for the purpose for which it is designed.
2.4 Sub-Letting
If you are a tenant or lessee, it is essential for you to make certain that the intended letting is permitted under your head lease.
2.5 Inventories
The owner should provide a full inventory/condition report for the property. This will be typed up as part of our service. We can prepare an inventory at a small additional cost.
3.0 Fees
3.1 There is currently no VAT to pay on our fees.
3.2 There are no fees payable until a property is let but any specific costs (advertising) will be charged at cost).
3.3 There are no charges for a renewal of an agreement to an existing tenant.
Full Management Service
3.4 Commission on rents collected is 11.5%.
3.5 An initial setting up fee of £100.
3.6 Upon a change of tenant, a fee of £50.00
3.7 Where contractors are instructed resulting in additional work - site visits, drawing up schedules of works and any other labour intensive tasks a fee equivalent to 10% of the contract price (up to £2,000.00) will be levied and thereafter 5% of the balance.
Tenant Only Service
3.8 To find a tenant, take up references and to provide an Assured Shorthold Agreement, a fee equivalent to one calendar month's rent will be charged and deducted from the initial rent and deposit received.
Rent Collection Service
3.9 To collect the rents and account to landlords by the end of each month a fee of 8% of rents collected will be charged.
Cancellation Charges
3.10 If cancellation of our services occurs before a tenant is found there are no cancellation fees payable but cost of specific advertising will be charged.
If cancellation of our services occurs after a tenant is secured the tenant only fee shall apply and invoiced accordingly.
4.0 Income Tax - Non UK based Landlords
4.1 With effect from 5th April 1996 new "self-assessment" rules have been in force and we are obliged to deduct 23% from all rents received and submit them quarterly to the Inland Revenue. However, this only applies to those overseas landlords who have not registered with the Inland Revenue and who have not been issued with an Exemption Certificate. In addition, Castles Golding Property Management is required to submit annually a detailed return to the Revenue authorities. Landlords are urged to register with the Inland Revenue and provided their tax affairs are 'up to date', an Exemption Certificate will be issued and subsequent rents received will then be forwarded without deduction.
4.2 For overseas landlords not able to produce a Tax Exemption Certificate, commission will be levied at 15% to cover the additional costs of accounting to the Inland Revenue.
5.0 General Notes
5.1 Council Tax
Council Tax is payable by the tenant(s) except for periods when the property is left vacant or where an agreement is made for a period of less than six months. We shall notify the relevant utilities boards of tenant movements. Tenants are also responsible for all normal outgoings - electricity, gas, telephone, water and sewerage rates except where the charges fall under maintenance charges - normally associated with leasehold flats.
5.2 Sale
In the event of the sale of the property to the tenant or any third party associated with the tenant leading to an exchange of contracts, Michael Golding shall be entitled to commission calculated at the rate of 1.5% of the sale price.
5.3 Void Periods
Our management function does not include the supervision of the property whilst it remains unoccupied, although during the normal course of business visits to the property may be made by our letting staff. We can provide regular security visits if required.
5.4 Loans for Letting
Michael Golding and Castles Property Management, Castles Residential Lettings, Castle Financial Services are Licensed Credit Brokers (413849) and have good contacts with Master Brokers for all types of borrowing requirements.
Loans from £15,001 to £250,000 are available specifically for the purchase of properties to let. Up to 4 persons can be named on the mortgage and rates are competitive. Full written details upon request.
FIRE AND FURNISHINGS (Fire) (Safety) REGULATIONS 1988
AMENDED 1993
The implications for the above legislation, as recently amended, has significant implications for both the Landlord and Letting Agent and we would urge all Landlords to carefully take note of the following summary.
With effect from 1st March 1993 it is an offence to "supply" furniture which does not comply with the Fire Resistance Requirements contained in Regulation 14 of the 1988 Regulations, if that furniture has been first provided since 1st March 1993.
Furniture manufactured before the 1st January 1950 is exempt from the Regulations. This is because the defective materials, which cause fire, were not in use prior to 1950.
The legislation states that the offence is committed when the furniture is supplied "in the course of business". Investment or professional Landlords are, therefore, clearly covered by the legislation. The situation is less clear regarding an owner/occupier letting his/her own home. However, in the latter case the Letting Agent is quite definitely liable and must comply when facilitating a let.
Castles Property Management will, therefore, not be able to market a property for rental purposes unless totally satisfied that the requirements of the legislation have been met. Currently the offence carries a punishment of six months imprisonment, or a fine on what is known as "level 5" maximum, currently £5,000, or both.
Should you have any queries, or should you wish to discuss your individual circumstances in detail, please contact your Solicitor or us.
ELECTRICAL GOODS
Trading Standards Officers are asking us to ensure that no worn out or faulty appliances are provided in rented accommodation.
Appliances that do not comply with the Safety Regulations are illegal and can result in action being taken against Landlords and Agents.
Always look carefully at the condition of electrical appliances for obvious signs of damage, cracked casing, broken handles, worn flex. Repairs with insulating tape are totally unacceptable.
A 3-core mains leads must have a label stating "The wires in this mains lead are coloured in accordance with the following code, Green & Yellow-earth, Blue-neutral, Brown-live!” A 2-core lead must also have blue and brown wires, but no label is necessary.
If the wires are black, red and green, it is an offence to provide the equipment.
GAS SAFETY REGULATIONS
Since 31st October 1994, it became law for gas equipment in rented property to be checked annually by an installer registered with the Council for Registered Gas Installers (CORGI), and for accurate records to be kept of work carried out on all appliances. These records must be available upon reasonable notice for inspection by tenants.
A Landlord and his agent will be guilty of an offence under Section 36(1) of the Health and Safety at Work Act 1974 and may be prosecuted where a breach of the regulations is proven. The maximum penalty for non-compliance is a fine of £5,000.
The Regulations also require that: -
1. No appliance with an open flue be fitted in sleeping accommodation or bath/shower rooms.
2. Where applicable, tenants must have a key to the gas meter box.
3. Defined tests and safety checks must be carried out after work on any gas appliance.
4. When installing an appliance, instructions must be left for the occupants.
Where Castles Property Management are instructed to manage a property, we will in the absence of the landlord so doing, instruct a CORGI registered maintenance engineer to carry out annual safety checks on all gas appliances within the let property.
We regret we are unable to take instructions to let properties, which do not comply with the Regulations.
LETTER OF AUTHORITY TO CASTLES PROPERTY MANAGEMENT
From:......................................................................................... Date:...............................
REF: (Property address)........................................................................................................................
I/We hereby instruct Castles Property Management to seek suitable tenants for the above property, to negotiate the best possible rent and to prepare and sign the Tenancy Agreement on my/our behalf.
I/We have received a copy of the Management Prospectus, which forms the basis of my/our Agreement with Castles. It is understood that there are no fees payable until the property is let. It is understood that advertising will be charged at cost subject to a maximum of £60 (sixty pounds) in any one letting period unless otherwise agreed by me/us.
It is expected that Castles will take every care in selecting suitable tenants but I/we agree that they cannot accept responsibility for the way tenants conduct their affairs.
I/We confirm that the property and contents will be kept fully insured by me/us, that Castles does not accept responsibility for managing the premises during any period when left vacant, unless agreed under a separate arrangement. I/We also confirm that to the best of my/our knowledge all soft furnishings comply with the Furniture and Furnishings (Fire)(Safety) Regulations 1988 and that the premises have/have not* been let previously. (* delete as applicable)
Further it is agreed that if gas safety checks have not previously been carried out, Castles Property Management are hereby authorised to appoint a CORGI registered tradesman to carry out all checks and any remedial works required.
This authority will remain in force for the first letting period and any future lettings unless I/we instruct Castles to the contrary in writing.
Service required:
(1) Full Management (2) Tenant only (As detailed in the prospectus).
Signed .................................................. Date .............................
LETTER OF AUTHORITY TO CASTLES PROPERTY MANAGEMENT
From:......................................................................................... Date:...............................
REF: (Property address)........................................................................................................................
I/We hereby instruct Castles Property Management to seek suitable tenants for the above property, to negotiate the best possible rent and to prepare and sign the Tenancy Agreement on my/our behalf.
I/We have received a copy of the Management Prospectus, which forms the basis of my/our Agreement with Castles. It is understood that there are no fees payable until the property is let. It is understood that advertising will be charged at cost subject to a maximum of £60 (sixty pounds) in any one letting period unless otherwise agreed by me/us.
It is expected that Castles will take every care in selecting suitable tenants but I/we agree that they cannot accept responsibility for the way tenants conduct their affairs.
I/We confirm that the property and contents will be kept fully insured by me/us, that Castles does not accept responsibility for managing the premises during any period when left vacant, unless agreed under a separate arrangement. I/We also confirm that to the best of my/our knowledge all soft furnishings comply with the Furniture and Furnishings (Fire)(Safety) Regulations 1988 and that the premises have/have not* been let previously. (* delete as applicable)
Further it is agreed that if gas safety checks have not previously been carried out, Castles Property Management are hereby authorised to appoint a CORGI registered tradesman to carry out all checks and any remedial works required.
This authority will remain in force for the first letting period and any future lettings unless I/we instruct Castles to the contrary in writing.
Service required:
(1) Full Management (2) Tenant only (As detailed in the prospectus).
Signed .................................................. Date .............................
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