Terms and Conditions

LANDLORD’S GUIDE TO

LETTING & MANAGEMENT OF RESIDENTIAL PROPERTIES, TERMS OF BUSINESS, FEES AND EXPENSES.

Iconnector Ltd is a member of The Property Redress Scheme (membership no PRSC105618)

and subscribes to the Code of Practice for Letting Agents. A copy of the Code is available on request. www.theprs.co.uk

Ideally the landlord would not require the services of a letting and management agent. But how does the landlord ensure that he/she obtains the best rent from a suitable tenant, that the rent is paid promptly, that the property is not damaged and/or devalued and that at the end of the tenancy the tenant vacates? It is the duty of the managing agent to ensure that the tenancy is conducted according to the terms of a legally binding agreement in compliance with legislation affecting tenancy deposit protection as well as health and safety regulations. At Iconnector Ltd, we pride ourselves in providing a professional and caring service to our landlord clients.

For each of the services we offer below, Iconnector Ltd will:

• Give advice as to the likely rent obtainable, having regard to the property’s condition and the rental market.

• Advertise and market the property through our website, www.iconnector.co, major property portals, relocation agents and our tenant database.

Summary of Services
Our services can be tailored to suit the landlord’s specific requirements by the provision of:

1. Let Only Service, or

2. Let and Full Management Service

   Iconnector Ltd provide the most complete letting and management service and if there are any questions still arising after you have read this guide then please do not hesitate to contact us.

1. Let Only Service:

1.1 Once a suitable tenant is introduced who has made an acceptable offer of rent, we will obtain necessary financial and personal references (including “Right to Rent” checks) in order to ascertain not only the tenant’s ability to pay the rent, but also whether the tenancy is likely to be conducted in a satisfactory manner. If the tenant is not acceptable then we will not let your property.

1.2 Unless the landlord’s own solicitors are instructed, we will prepare documentation for signature. Our tenancy agreements are more comprehensive than the standard form of agreements generally available from law stationers although, if any doubts exist, we would recommend that our agreement be submitted to your legal advisor for approval.

1.3 We will obtain, together with the first month’s rent in advance, the deposit (equating to one month’ rent to be held under our membership of the Deposit Protection Scheme against any possible damage to the property, contents or unpaid rent and other charges.

 Please refer to provisions relating to tenancy deposit protection.

1.4 We will arrange for a professional inventory and schedule of condition to be carried out at the landlord’s cost, recording the condition of the property and its contents and, at the end of the tenancy, arrange for a check out report to be prepared recording any dilapidations, state of cleanliness and whether there has been any undue wear and tear. 

Please refer to provisions relating to preparation of the inventory.

1.5 Our fee for the Letting Only Service is usually (9.6% inc VAT) 8% plus VAT of the total rent due under the term of the tenancy agreement [minimum charge £360.00 inc VAT] (unless otherwise agreed with your main point of contact). Example: If the monthly tenancy rent is £2,000.00 pcm, for a fixed term tenancy of 12 months, the fee would be £2,304.00 inc VAT. This fee is payable in full once the tenancy agreement is signed and will be deducted and accounted to the landlord by statement from the first month’s rent paid. Should the fee exceed the value of the rent collected, the landlord agrees to pay the balance outstanding to Iconnector Ltd upon submission of invoice and statement. A Landlord Information Pack will be issued to the landlord following the processing of the tenancy agreement and payment.

1.6 Within the last two months of the tenancy term, Iconnector Ltd will contact both the landlord and the tenant to negotiate any renewal or extension of the tenancy. The landlord will be responsible to pay to Iconnector Ltd the same fee as above where any renewal or extension of the original tenancy term is agreed with the tenant or where the tenant introduces an “associate” who subsequently enters into a tenancy agreement with the landlord. An “associate” of a tenant is a friend, relative or work colleague who is introduced to the property by the tenant and has not been introduced either by the landlord or another letting agent directly

 Please note that any options contained in the tenancy agreement to terminate the agreement before the expiry of the original fixed term by either party will be ignored in determining the total rent due and the fee payable

1.7 Unless a special arrangement applies, Iconnector Ltd will, on notification by the landlord, refund fees on a pro rata basis to the landlord within 14 days after the tenancy agreement has ended where an option to terminate the tenancy agreement has been lawfully exercised by the tenant (please refer to authorisation letter).

1.8 Any renewal or extension of a tenancy will be charged at the initial rate.

2. Let and Full Management Service:

The following service will be provided in addition to the Let Only Service above:

2.1. At the commencement of the term, we will transfer all utilities and Council Tax accounts into the name of the tenant (unless otherwise provided for in the tenancy agreement). Any final account bills will be disbursed from rents collected and accounted to the landlord. On termination of the tenancy agreement, all relevant accounts will be transferred back into the landlord’s name.

2.2 During the currency of the term, we will collect the rent from the tenant on each payment date in accordance with the tenancy agreement, then pay the rent into the landlord’s nominated bank account by online transfer within 5 working days.

2.3 Quarterly statements will be issued to the landlord by email (or by post if requested) detailing 3 months rent income and payments.

2.4 In addition and where required, we will pay on behalf of the landlord any ground rent or service charges levied from rents collected, subject to holding adequate cleared funds (further charges apply, please see below).

2.5 Sufficient funds will be held on behalf of the landlord for the duration of the tenancy to cover anticipated outgoings and / or unexpected maintenance of a minor nature (up to a maximum of £300.00). Funds held on account will not attract interest.

2.6 Estimated costs of repair in excess of £300.00 (minimum expenditure limit) will be referred to the landlord for consent where practicable except in the case of urgency.

2.7 It is agreed that should Iconnector Ltd incur any expenditure on behalf of the landlord, such expenditures will be deducted from rents received or exceptionally recovered from the landlord directly if in excess of the current balance in the landlord’s account.

2.8 Where any routine works of repair/maintenance are required to be carried out (defined as less than £1000.00 inc vat), these will be undertaken by qualified tradesmen (without being liable for any omission or default) and the costs accounted for by following statement.

2.9 Our fee for the Let and Full Management Service is usually (4.8% inc VAT) 4% plus VAT in addition to the fee for the Let Only Service, total (14.4% inc VAT) 12% plus VAT (unless otherwise agreed with your main point of contact).

2.10 In the case of a 12 month standard tenancy the combined fee will be deducted from the rent collected at the commencement of the tenancy.

2.11 Where we are required to arrange for major works to be carried out (value £1000 inc vat or more), a quotation will be obtained for consideration by the landlord and upon instruction, will be undertaken as above subject to receipt of funds on account. Please note that an additional charge of (20% inc VAT) 16.7% plus VAT of the value of the work will be payable to include arranging access, assessment of contractor’s estimates and ensuring the work is carried out according to specification and retention of any warranty orguarantee.

2.12 Inspections of the property are carried out during the term of the tenancy. Responsibility for and management of the property when vacant/empty (except below one month between tenancies) is not included. Please see below.

2.13 Any renewal or extension of a tenancy will be charged at the initial rate.

NB. By definition, a non resident landlord cannot elect the Let Only or Let and Rent Collection Service.
NB. Please refer to Legal Aspects of Letting, Houses in Multiple Occupation (HMOs) below for additional charges.

Additional non-optional charges and information

Reference administration charge - £50.00 inc VAT per tenant/guarantor

Includes obtaining financial and credit checks, right to rent checks, employer and landlord/agent references.

Preparation of Inventory 

A comprehensive inventory detailing the decorative condition of the property and the condition of furniture, furnishings and contents will be undertaken by an independent inventory company prior to the tenant taking occupation in order to avoid any dispute at the end of the tenancy. Should the tenant be liable for dilapidations at the end of the tenancy, without a properly compiled inventory, deductions from the deposit cannot be legally justified and the provision of an inventory is a core assumption of the Tenancy Deposit Scheme. The landlord will be responsible for the cost of the inventory and for the cost of the check out report These charges are raised by our independent inventory provider depending on the property’s size and contents. As a general guide:

Studio / One Bedroom Flat – from £150.00

Two Bedroom Flat  – from £175.00

Three / Four Bedroom Flat – from £200.00

(all prices inc VAT)

Note: The above charges will apply both at Checkin (at the start of the tenancy) and Checkout (at the end of the tenancy).

NB. Where a property has been viewed in an unfurnished state by a prospective tenant, but the parties have agreed for the property to be let furnished, it will be incumbent upon the landlord to furnish the property at his cost in accordance with any agreement, unless the property has been expressly agreed to be let unfurnished. It is expressly agreed that Iconnector Ltd will not be held responsible where, as a result of the landlord failing to furnish the flat according to an agreed inventory of contents or within an agreed time scale, the tenant seeks a reduction in rent.

Tenancy Deposit Protection

All tenancy deposits under an Assured Shorthold Tenancy must be protected under a statutory tenancy deposit protection scheme. A landlord or agent will lose the right to regain possession of the property at the end of the tenancy in the event of a deposit dispute unless the tenant has been given information in prescribed form about how the deposit has been protected.

Unless otherwise instructed by the landlord in the case of let only service instructions (see below), Iconnector Ltd shall hold and protect the tenancy deposit under its membership of the Deposit Protection Scheme administered by:

Regulatory information required to be notified under the Tenancy Deposit Scheme:

1. Iconnector Ltd Property Ltd holds tenancy deposits as stakeholder under the Deposit Protection Scheme.

2. At the end of the tenancy covered by the Tenancy Deposit Scheme

   a) If there is no dispute the agent will keep any amounts agreed as deductions where the expenditure has been incurred on behalf of the landlord, or repay the whole or the balance of the deposit according to the conditions of the tenancy agreement with the landlord and tenant. Payment of the deposit will be made within 10 working days of written consent from bothparties.

   b) If, after 10 working days following notification of a dispute to the agent and reasonable attempts have been made in that time to resolve any differences of opinion, there remains an unresolved dispute between the landlord and the tenant over the allocation of the deposit it will be submitted to the Independent Case Examiner (ICE) for adjudication. All parties agree to co- operate with any adjudication.

   c) When the amount in dispute is over £5,000 the landlord and tenant will agree by signing the tenancy agreement to submit the dispute to formal arbitration through the engagement of an arbitrator appointed by the ICE although, with the written consent of both parties, the ICE may at his discretion accept the dispute for adjudication. The appointment of an arbitrator will incur an administration fee, to be fixed by the Board of The Dispute Service Ltd from time to time, shared equally between the landlord and the tenant. The liability for any subsequent costs will be dependent upon the award made by the arbitrator.

   d) The statutory rights of either the landlord or the tenant(s) to take legal action against the other party remain unaffected.

   e) It is not compulsory for the parties to refer the dispute to the ICE for adjudication. The parties may, if either party chooses to do so seek the decision of the Court. However, this process may take longer and may incur further costs. Judges may, because it is a condition of the tenancy agreement signed by both parties, refer the dispute back to the ICE for adjudication. If the parties do agree that the dispute should by resolved by the ICE, they must accept the decision of the ICE as final and binding

   f) If there is a dispute, we must remit to The Dispute Service Ltd the full deposit, less any amounts already agreed by the parties and paid over to them. This must be done within 10 working days of being told that a dispute has been registered whether or not you or we want to contest it. Failure to do so will not delay the adjudication but The Dispute Service Ltd will take appropriate action to recover the deposit and disciplineus.

   g) The agent must co-operate with the ICE in the adjudication of the dispute and follow any recommendations concerning the method of the resolution of the dispute.

   h) No interest shall accrue to the landlord or to the tenant from the holding of the deposit under the terms of the tenancy agreement.

Breaches of tenancy agreement/legal action

Where we are instructed under the Let and Full Management Service, all necessary steps will be taken to ensure that the rent is paid on time and that the landlord’s interests are generally protected against breaches of covenant. Should your tenant be in arrears with the rent or we become aware of any other breaches of the tenancy agreement, you will be informed. If however it becomes necessary to take legal action you will be responsible for instructing solicitors and for all fees and costs arising. If a senior member of staff is required to attend court or tribunal in support of a claim for possession or other action, a charge of £90.00 inc VAT/per hour will be charged.

Legal expenses & rent guarantee (Landlord’s Insurance)

Even a good tenant can experience financial difficulties, which can result in costly legal expenses and loss of rental income. For an additional fee and payment of a premium, we can arrange insurance cover to protect against the costs involved in eviction proceedings and tenant disputes, as well as covering rent owed by the tenants. Should you wish to take up this insurance, it is essential to notify Iconnector Ltd at the earliest opportunity on acceptance of the offer to rent in order that we are able to take up qualifying tenant references as a condition of cover.

Sale of property to tenant

Should the landlord sell the property to the tenant either during the term of the tenancy agreement or within six months after it has ended, Iconnector Ltd shall be entitled to charge a fee of (2.4% inc VAT) 2% of the negotiated price plus vat on completion of the sale. A copy of Iconnector Ltd’s sale agency agreement is available on request and the landlord agrees to sign this agreement before an offer to purchase submitted by the tenant is accepted by the landlord.

Legal aspects of letting:

Tenancy Agreement
Assured Short-hold Tenancy
Where the letting is to an individual rather than a corporate body and provided the annual rent does not exceed £100,000 per annum, the tenancy agreement will be an Assured Shorthold Tenancy (AST) under the Housing Acts 1988 and 1996. Although most ASTs are for a fixed term of at least 6 or 12 months, an AST can also be on a periodic basis from the outset unless the parties agree a fixed term. The fixed term may also be for less than 6 months if both parties agree; however, the landlord is not entitled to seek a Court Order for possession until the expiration of 6 months unless one of the grounds in such of the Housing Act1988 (as amended) applies.
Iconnector Ltd will prepare the tenancy agreement in standard form applicable to the terms agreed and will provide a copy to the landlord’s advisor/mortgagee if requested.
Should the landlord, advisor/mortgagee require amendments or require Iconnector Ltd to enter into further work or correspondence, a fee for the extra work may be requested in addition to our standard fee for preparation and service of tenancy documentation.

The landlord agrees that Iconnector Ltd shall sign the tenancy agreement and the relevant statutory notices on the landlord’s behalf.

Corporate Tenancy

The Housing Act 1988 generally does not apply to corporate tenants and therefore, where the tenant is a body corporate, embassy or other institution, a corporate letting agreement will be entered into, generally with a guarantor.

Consents to underletting

Where the landlord’s interest in the property is leasehold, formal written consent may have to be obtained from the superior landlord or managing agent of the building before subletting. Please consult the lease.
In addition, where a mortgage subsists, it will usually be necessary to obtain consent from the mortgagee before letting.

Iconnector Ltd assumes consent has been obtained unless notified to the contrary and it remains the legal responsibility of the landlord to obtain a deed of covenant from the superior landlord or consent from the mortgagee.

Insurance

The landlord shall be responsible for the property being adequately insured during the period of letting and it is strongly recommended that the insurance company be notified prior to any subletting in order to be advised of any additional cover required.

Local authority Council Tax and utilities

It will be the responsibility of the tenant to pay the Council Tax and charges for light, heat, water, internet/telephone, unless otherwise specifically agreed in the tenancy agreement. In modern developments, charges for the provision of heating/hot water and air cooling are usually raised by separate service charge raised on the leaseholder or, exceptionally directly on the tenant with the leaseholder retaining ultimate liability. Under our standard form of tenancy agreement, provided these charges are quantified and notified to Iconnector Ltd, the tenant will be recharged for these services according to the duration of the tenancy and on a pro rata basis at the end of the tenancy.

Income Tax

Where the landlord is resident outside of the UK for tax purposes, Section 78 of the Taxes Management Act 1979 makes it the responsibility of the agent collecting the rent to deduct income tax at source from the rents collected at the standard rate (currently 20%), after deductions for allowable expenses.

The agent is also required to register with HM Revenue & Customs (HMRC) all non-resident landlords for whom rent is collected and to operate a scheme (The Non-Resident Landlord Scheme) to deduct tax and account each quarter. Where we are required to operate deduction of tax under the Non-Resident Landlord Scheme, tax will be deducted without interest accruing and paid to HMRC each quarter. The landlord should still submit a tax return following the end of the tax year and may be entitled to a tax rebate if details of other allowable expenses are submitted, eg mortgage interest. Where the landlord does not have an accountant to deal with this matter, our accountants are able to make the necessary declarations. Further information is available on request.

Deduction of tax at source can be avoided, however, if the landlord is approved to receive rent payments gross. Iconnector Ltd will assist the non resident landlord to complete the application and submit the relevant NRLS form to HMRC. The approval must be issued in the name of the landlord’s agent to be valid.

If you are a non-resident landlord, you will be required to declare your “ordinary place of residence” and confirm whether or not you currently have a NRLS approval number.

Where we are required to operate the NRL scheme for any non resident landlord, a charge of £40.00 inc VAT per tenancy/tenancy renewal be applied.

Energy Performance Certificates (EPCs):

It is a legal requirement for a landlord to provide free of charge to the (prospective) tenant an Energy Performance Certificate (EPC) when letting a residential property. An EPC gives information to prospective tenants on the property’s energy efficiency and remains valid for 10 years. It provides a rating for the energy performance (in terms of it’s energy efficiency rating and environmental impact (CO2) rating from A to G, where A is very efficient and G is very inefficient, based on age, property layout, construction, heating, lighting and insulation. A Recommendation Report also forms part of the EPC.

Unless the landlord already has a valid EPC (an EPC provided within a HIP (Home Information Pack) from a recent purchase is valid for lettings within 3 years), Iconnector Ltd will commission an EPC from an accredited Domestic Energy Assessor (DEA), which will require a visit to the property for an assessment. The cost will be quoted upon application, and is dependent on the size of the property. The landlord will be required to make payment in advance of securing a letting on placing the letting instruction with Iconnector Ltd.

Energy Performance Certificate – cost charged by supplier (please call for details)

Houses in Multiple Occupation(HMOs):

Mandatory Licensing:
Certain properties designated as an HMO under The Housing Act 2004 are required to obtain a license from the local authority and must meet minimum requirements relating to the size and type of accommodation and the competence of the person responsible for management. Only properties having 3 or more floors and occupied by 5 or more persons forming 2 or more households are required to be licensed.

Additional/Selective Licensing:

The Housing Act 2004 gave local authorities retained powers to implement additional or selective licensing of other types of rented residential properties subject to consultation. As from 8th December 2015, the London Borough of Camden requires all properties designated as HMOs in the borough to be licensed and to meet the minimum standards required under the mandatory scheme. Effectively, all properties let to 3 or more persons forming 2 or more households are required to be licensed. Other local authorities have passed similar legislation applicable to designated areas only or borough wide.

The Deregulation Act 2015 requires an HMO let under an assured shorthold tenancy to be licensed in order for the landlord to enforce a Notice Seeking Possession (Section 21 Notice) at the end of the tenancy.

Please call for further information regarding local authority charges and our charges for submission and processing of HMO license applications and management of licensed HMOs.

furnishings manufactured before 1950. Please bear in mind that upholstered antiques restored since 1950 might not comply.

The only practical check to see if a piece of soft furnishing complies with the Regulations is to look for a label. The labels are usually sewn on to minimise the risk of becoming detached before normal use. As a guideline, items purchases after 1st March 1990 from a reputable, manufacture or retailer are likely to meet the required standards. If no label is seen, the item will be presumed not to comply. If there are items in the property that are found not to comply, they will have to be removed by you.

If the landlord is unsure whether furniture or furnishings contained in the premises comply with current Regulations we would recommend that an inventory check be made (see additional fees - preparation of inventory).

Where Iconnector Ltd has not been instructed to carry out an inventory check before the commencement of a letting, the landlord undertakes that any soft furnishings and furniture in the premises complies with the Regulations

Smoke & Carbon Monoxide Alarms: The Smoke and Carbon Monoxide Alarm (England) Regulations 2015 

As from 10th October 2015, landlords are required to have installed a smoke alarm on every floor of a rented property which must be tested at the start of every tenancy. Carbon monoxide alarms must be installed where there is a solid fuel heating appliance and should be installed in all high risk areas. Properties built post June 1992 already have mains powered interconnected smoke alarms and licensed HMOs are subject to more stringent requirements.

Complaints Procedure

please refer to our complains procedure