Landlord Fees
1. Fees & Services
Basic Service
A basic service of the introduction of a tenant acceptable to the client is provided for a fee of 10% plus VAT (i.e., 12% inclusive of VAT at the currently prevailing rate) or 15% plus VAT (18% inc. VAT) when tenancies are for three months or less, of the gross rental payable during the resulting tenancy. References are applied for and submitted to the client for approval, ‘right to rent’ immigration checks conducted and reported, and Tenancy Agreements prepared in Pereds’ standard form. Fees become payable when both parties have entered into an Agreement and the first rental instalment has been paid, and Pereds may retain fees from instalments received.
Deposits
A deposit against dilapidations and unpaid bills is customarily collected from the tenant and held by Pereds as stakeholders (and safeguarded by The Tenancy Deposit Scheme) throughout the tenancy. It is recommended that an independent inventory clerk be employed to prepare a schedule of the contents and condition of the premises: this should then be checked at the end of a tenancy and any dilapidations may then be charged against the deposit held. Pereds makes no charge for arranging this service but the inventory clerk’s fee, which is based upon the time involved, is payable by the client. Customarily, inventory check-out fees are payable by the tenant.
Management Service
A full management service is available for an additional fee of 5% plus VAT (6% inc. VAT) of the gross rental payable during a tenancy and includes arranging (a) routine repairs when practicable, (b) gas and appliance safety checks, and (c) discharge of relevant outgoings (such as salaries of staff, Council Tax payments, etc) on clients’ behalf.
Rental Instalments
These are normally payable monthly or quarterly in advance. Pereds makes no additional charge for applying for them and accounting either directly to clients or to their bankers as required. At least five working days are allowed for the clearance of tenants’ cheques, and fees are usually deducted quarterly in advance. If payments are forwarded to bankers, clients are customarily advised separately of each payment and rental statements are prepared when considered necessary.
Non-Resident Clients
Clients who are not resident in the UK for tax purposes are advised that under The Taxes Management Act 1970, Pereds may be regarded as Managing Agents and assessed for income tax payable, and reservations of no less than the standard rate of tax will be made from rentals received. Non-resident clients are charged an additional fee of 5% plus VAT (6% inc. VAT) of the gross rental payable during a tenancy and will be entitled to a full management service as described above.
Purchases
If the tenant or occupier or any associated party introduced by Pereds subsequently purchases the property, Pereds may charge the vendor in respect of the introduction a fee of 2% plus VAT (2.4% inc. VAT) of the purchase price to include any sums paid for furniture, fixtures and fittings, payable on completion.
Disposals
In the event that title to the premises is disposed of or transferred to a third party, fees continue to be payable as specified here.
2. Notes
All fees are subject to Value Added Tax at the prevailing rate.
A tenancy is defined as the entire period during which a tenant introduced by Pereds remains in occupation of the premises.
Clients are advised to inform their insurers and mortgagees and any other interested parties of their intention to let, and note that mortgagees may require to approve references and Tenancy Agreements.
Pereds reserves the right to make additional charges in respect of expenses incurred on behalf of clients in the following circumstances:
(a) where the incurring of such expense has been expressly authorised by the client, and
(b) where the expense is reasonably incurred by Pereds in maintaining or preserving the client’s property. Provided always that neither by these conditions nor otherwise howsoever do Pereds undertake or warrant to incur any such expense or do any act or thing other than provide the services expressly referred to in Part 1 above.
Clients are advised to satisfy themselves that tenants introduced are likely to prove suitable and are lawfully in accordance with immigration laws.
References cannot be guaranteed and Pereds accepts no liability for the consequences of any defaults by tenants introduced, nor for the consequences of any representations made, whether negligent or otherwise, by Pereds in connection with the making of such introduction. Pereds accepts no liability for the acts or omissions, whether negligent or otherwise, of inventory clerks and other persons independently employed.
Clients should note that rental figures are quoted exclusive of Council Tax. However, landlords may be held liable for Council Tax in respect of short term holiday lettings subject to Local Authority guidelines.