Landlords
Our experience in residential lettings over the past 17 years puts us in a unique position to provide a range of valuable services to our clients to protect and add value to your investment.
We consider your investment to be our first priority, finding you the best tenant, at the right price and managing the whole process in a prompt, efficient and professional manner.
It is for this reason that we ensure that all of our staff are experienced and qualified to do their jobs and those who are learning with us are engaged on a formal course of study to learn what is a complicated business.
Not all agents are the same……trust us
Portfolio Management
Whether you have 2 or 250 properties, having them professionally managed is convenient and free’s your time to concentrate on your other business and family concerns. Our portfolio management service helps to keep your administration centralised with monthly accounting, common rent dates, run by experienced and qualified property managers and accounts staff.
Buy to Let Acquisition
However ambitious you are, we can help you find the best properties, the right finance and structure the development of your property portfolio.
Identifying suitable properties, negotiating the right deal, sourcing the best finance, and seeing it right through until the day the property is let, we’ll help you avoid the pitfalls and set up a successful investment portfolio.
7 Day Rent Promise
With our Comprehensive Platinum Service we will guarantee your rent will be paid within 7 days of the due date……and if it is not we will pay it and continue to pay until the tenant gets back on track or you get vacant possession. Colin Dean’s Platinum Service provides the best rent payment promise in the market.
Buy to Let Valuations
As members of ARLA we are one of the few local companies who can provide rental assessments acceptable to all major lending institutions
Refurbishment Service
It’s vital for your properties to be presented in the best possible condition to achieve the best rent and avoid costly void periods. We will identify what needs to be done, prepare schedules, obtain estimates and appoint the right contractor. We will also see through the works to a successful conclusion, and if you need additional finance to complete the works, we can even help you source that.
Claim Management
Should an incident occur with your property that requires an insurance claim to be lodged, you’ll need to be certain that your interests are best protected and that the property is restored to its former condition professionally and in good time.
Our claims management service takes your position in ensuring that the right contractors are selected, and that the works are carried out to the highest standards with the minimum inconvenience to your tenants, which is vital to protect your rent flow.
Our “Platinum” Service with 7 Day Rent Promise
Our Platinum Service offers you the BEST lettings and management service available PLUS protects you in the event of your tenant failing to pay your rent.
The Colin Dean’s 7 day Rent Promise guarantees to pay your rent to you within 7 days of the rent due date regardless of whether the tenant has paid! Crucially, should your tenant not pay…WE will, and we’ll pay you only 7 days after the date it was due!
Though a problem with your tenant may still exist, you will not be put to financial hardship as a result, leaving us and the solicitors to act on your behalf to resolve the situation.
Our Platinum Service provides our full Letting and Management service described under our Gold Management Service but also includes
· Up to £50,000 cover for rent and legal expenses
· Cover against loss of rent up to obtaining vacant possession with a limit of 12 monthly payments. (no excess)
· Payment of rent to you 7 days after the due date.
· Cover includes one month after possession obtained if not re-let and if we are instructed to find a tenant
· Cover against disputes with authorised or un-authorised tenants (squatters)
· Cover for legal expenses, court costs and related expenses (no excess)
· The services of an experienced specialist “Landlord and Tenant” solicitor.
· No restriction on type of tenant (action can be taken against any tenant vetted by us).
Our “Gold” Management Service
Monthly Rental Payments
We will arrange for the tenant to pay rent due to our office usually by standing order. On receipt we will prepare an account and pay your rent to you by BACS transfer, deducting any costs incurred and approved. Please allow a minimum period of 10 working days for clearance of the rent and payment to your account. Please ensure that you hold a sufficient reserve of funds to meet your expenses in the event of a delay with your rental payments. We will not be held liable for any charges, including bank charges, you incur by not holding sufficient funds to meet your regular outgoings.
Legal Costs Protection
You will be protected by our very own legal costs protection plan (CDLCPP), providing a safeguard against the financial liability of incurring large legal expenses that are otherwise inevitable if you have to take legal action against your tenant. Of course, we will work hard to prevent problems or resolve them when they occur, however an errant tenant is unlikely to be moved by empty threats of action. Our legal costs protection allows us the ability to instruct solicitors immediately that things start to go wrong which will often resolve the problem without the need to go further. Where obtaining possession of your property is necessary, starting action sooner rather than later will save time in a process, which can take between 3 – 5 months. Your cover will include
· up to £50,000 cover for legal expenses within 12 months
· cover against disputes with authorised or un-authorised tenants
· cover for legal expenses, court costs and related legal expenses (no excess)
· services of an experienced specialist “landlord and tenant” solicitor.
Outgoings
We need to be in funds to meet expected expenditure and cannot undertake to meet any expenses on your behalf, unless it can be paid from the working balance held. We will need to hold a reserve account balance of £250 in order to prepare for such items of expenditure and provided that we hold enough funds we will pay outgoings such as insurance, service charges, repair bills, and other charges that we are authorised to pay. We will try to query any obvious discrepancies but accept no liability to do so, and accept your instructions to pay without question demands that appear to be in order. We cannot accept any liability for the adequacy of insurance cover, service charge payments etc.
Dedicated Property Manager
A specific property manager will be assigned to you who will make contact with, and maintain liaison between you and your tenants. Your property manager is trained to deal with a range of events, and will be responsible to ensure that rental payments are made on time, repairs are efficiently completed, gas safety inspections are completed when required, and they also conduct the visits to your property.
Repairs, Replacements and Improvements
We will deal with day-to-day maintenance matters, including minor repairs, up to a maximum cost of £250.00 per item. Except in an emergency and wherever practical, estimates will be obtained and submitted for your approval for any repairs /replacements likely to exceed this level. Should you wish us to, we can arrange for improvements and upgrading of your property to ensure it continues to achieve the optimum rent. Additional fees will be charged if the value of works arranged by us exceed £500.00, where we will charge a fee of 11.5% of the total cost of works before VAT.
Wherever your instructions are sought, we will appreciate a prompt reply, and in the absence of such a response, reserve the right to follow the course we deem to be in your best interests, and to fulfil your obligations under the tenancy agreement. Where faults occur, we will try to define precisely what the defect is. A call out charge may be made in addition to the final repair or replacement cost. We will undertake to use contractors qualified to deal with the defect reported, but cannot be held liable for a contractors inability to rectify a particular problem. We will, in these cases, seek an alternative contractor to complete the job in a satisfactory manner.
Property Visits
We will visit your property approximately every 4 months, and provide a written report of our findings. We will also investigate defects, which come to our attention, or are clearly and adequately brought to our notice. Visit reports can only extend to that which is obviously apparent, and does not amount to a full survey or an inventory check. We cannot accept responsibility for any hidden or latent defects. If the next visit due is within 30 days of the end of a tenancy a visit will not take place.
Check Out
We will arrange for an Independent Inventory Clerk, paid for by the tenant, to check the property at the end of the tenancy to prepare a report on condition and hopefully ensure that it is returned as it was at the beginning of the tenancy. If this is not the case we will liaise between you and the tenant to resolve any disputes and arrange for works to be carried out, and/or for missing items to be replaced. (Please see dedicated section regarding Deposits)
It is advisable to allow for a minimum period of 5 days between one tenant vacating and the next tenant occupying the property to allow for cleaning, inventory preparations, repairs, replacements etc.
Our Bronze Letting Service
Market Appraisal
A market appraisal includes a brief inspection to assess whether the property and its contents will meet the current legal and safety standards in respect of furnishings, gas and electricity. We will discuss the types of tenant you can expect to attract….and of course how much they are likely to pay.
Marketing
We will advertise your property and show over prospective tenants, ensuring that we will never compromise quality to meet a time deadline. as well as local press and internet advertising, we are in contact with many local, west end and city firms, embassies, banks etc all of who often have employees relocating to this area. Many of our existing or past tenants recommend prospective tenants to us.
Tenants, like landlords, are particular about the agent they use. They are looking for a firm who will treat them fairly, be interested in their needs and, above all, that they can trust. Most are looking for properties that are, and will be, well maintained, and will pay the right price to a landlord who can demonstrate that they are committed to providing a tenant with good service.
Reservation
We aim to obtain an offer from prospective tenants agreeable to you. If agreed, the property is reserved for that tenant once they lodge with us a holding deposit of 2 weeks rent, plus their referencing and administration fees. This helps to ensure the sincerity of the applicants as a tenant is unlikely to pay a large holding deposit if they are not confident about being able to acquire acceptable references, providing you tenants of the highest calibre.
16 Point Referencing Promise
Giving you the most Comprehensive Status check on your tenant in the market place.
1. Meet the Tenants
2. Financial Commitment (2 weeks rent as a holding deposit plus admin fees)
3. Photo ID (Passport/Driving Licence)
4. Copy of Work Permits (Where Necessary)
5. National Insurance Number
6. Proof of Current Address
7. Previous Addresses for last 3 years
8. Check Electoral Roll
9. Full Credit Check
10. Employers Reference (accountants if self employ
11. Employment details for last 2 years
12. Landlord Reference
13. Personal Reference
14. Bank Account Details
15. Vehicle Registration Number
16. Details of Next of Kin
We will arrange detailed references using these 16 different reference points many taken up by a specialist tenant referencing agency. Responses will be relayed to you by telephone, fax or email including copies of references received for your approval.
We will only proceed with a tenancy with your approval, unless you have agreed to accept our judgement as to a tenant’s suitability.
Tenant’s Contents Insurance.
“So what“ you may say, but without it an unfortunate event could become a full-blown legal dispute between you and the tenant. Consider a leak from the flat above, which ruins an expensive uninsured computer. The tenant is likely to say “your flat, your leak, your cost of a replacement”. You would probably disagree (as would we) but that does not prevent the tenant pursuing the matter. We insist that they insure removing the risk. Furthermore, the policy we offer the tenants also covers your property should they have an accident with your possessions. Now that spilt bottle of claret or iron mark on the carpet will not need to be concealed under the sofa when it comes to check-out.
Legal Documentation
We will prepare the necessary tenancy agreements and will sign the “agreement” as your agent, unless we have specific instructions from you, in writing, to the contrary. We will ensure that the tenants sign the “counterpart”. We will pass the counterpart to you and the tenants will be passed the signed agreement. We retain a signed “agent copy” which bears the signature of both parties.
Utilities
We will take meter reading for gas and electricity and notify the various utility companies including the local authority (council tax) and water company that your tenants have moved in. We will not take readings of your water meter due to accessibility problems.
Your Initial Rent Account
When your tenant moves in to the property they will pay the first month’s rent plus a security deposit, which will be held by Colin Dean under the Tenancy Deposit Scheme (see dedicated section on deposits). A full account will be prepared to show the allocation of the rent we have collected, the fees we have charged you and any costs that have been incurred on your behalf. in some cases where we are not managing your property you may owe us some money, which will need to be settled prior to your tenancy starting. We will be unable to allow your tenancy to commence before we are in funds to pay all costs (including our own commission fees) owing for the tenancy. You will be advised of the amount required from you to start the tenancy (if appropriate).
Renewing or Ending your Tenancy
At least 2 months before the end of the tenancy, we will contact your tenant and ask them to confirm if they intend to vacate or wish to extend the tenancy. At this time we will also seek your instructions. We will only issue an official notice to terminate the tenancy if you formally ask us to recover possession (in writing please). If the tenancy is to continue, we will arrange for the appropriate agreements to be prepared and then signed by the tenants. We will sign the agreement as your agent and forward the counterpart agreement to you.
Incorrect Information
The landlord warrants that all the information he has provided to the agent is correct to the best of his knowledge and belief. In the event that the landlord provides incorrect information to the agent which causes the agent to suffer loss or causes legal proceedings to be taken the landlord agrees to re-imburse and compensate the agent for all losses suffered.
Energy Performance Certificates (EPCs)
EPC’s which are part of the recently introduced Home Information Packs, become a compulsory part of the letting process from 1st October 2008
Energy Performance Certificates identify how energy efficient a property is (on a scale of A-G) and its impact on the environment. The most efficient homes are in band A, and these properties should have the lowest fuel bills. The certificate will also recommend ways in which the property's energy efficiency can be improved upon.
Landlords will not be under any obligation to follow recommendations in the EPC or to carry out work to improve the energy efficiency of the property. However, it is worth considering that tenants may, in the future, use the certificate to help them choose which property to rent, making higher-rated properties more desirable.
From 1st October 2008, any property marketed for letting, including those available before 1st October 2008, will have to have an EPC available for inspection by the prospective tenants. These certificates are valid for 10 years and though they have to be available for inspection each time the property is offered for Let, you do not have to have them updated for each letting (though if you have carried out Improvements you will probably want to do so).
All properties will need to be assessed by a fully qualified Domestic Energy Assessor (DEA) at an estimated cost of around £80- £100. Landlords are responsible for covering the cost of the certificate.
Need to make improvements?
The top five recommendations given by assessors for improving a property's energy efficiency are:
* cavity wall insulation
* changing to low-energy lighting
* putting thermostatic valves on radiators
* loft insulation
* double glazing
Information about financial assistance with energy saving improvements is available from various sources including:
* The Landlord Energy Saving Allowance (for more information visit www.hmrc.gov.uk)
* The Energy Saving Trust (visit the website at www.energysavingtrust.org)
A Good Inventory
We will arrange (at your cost) a Comprehensive Inventory including photographs, noting the location, colour, and condition of contents and the fabric of the property itself.
Your Inventory is a vital document which contains a detailed description of every normally accessible part of your home, specifying fixtures, fittings and furnishings and the condition of each item. This is not a work of interpretation, it is a factual professional assessment of the property and its current condition. Indeed it is a snapshot of your property taken immediately before the commencement of your tenancy.
This will be prepared by a professional Independent Inventory Company.
We regret that we will be unable to let any property unless a professional inventory is prepared property, and with the current Tenancy Deposit Protection legislation now in force it is pointless requesting a deposit if you do not have a thorough and effective inventory to prove the condition of the property.
The Inventory is given to your tenants when they move in to check, approve, sign and then return to us within 7 days of moving in.
At the end of the tenancy, a “check-out” meeting will be arranged which is paid for by the tenant and the items on the inventory are again reviewed. This is arranged by Colin Dean if we are managing the property, or by the landlord if we are not.
Landlord’s Insurance
Your property must be adequately insured throughout the term of the tenancy. We therefore recommend Property Risks landlord’s insurance for its wide cover and competitive premiums, within a single policy for letting property. Unlike restrictive cover provided by a standard household policy, PropertyRisks landlord’s insurance offers enhanced protection including:
Comprehensive Buildings, Contents and Accidental Damage Options available
· Includes cover against damage caused by the tenant
· Loss or damage caused by common events such as: fire, lightning, earthquake, explosion, etc.
· Property owners and Employers liability
· Locks and keys cover
· 24/7, 365 days a year emergency helpline
· Underwritten by Brit Insurance together with AXA Assistance and a panel of solicitors including Shoosmiths, PainSmith and Dutton Gregory
· Competitive premiums
· Ability to quote and buy online or over the telephone
· Payment options include: credit card, debit card or spread the payments with direct debit
Your tenancy contract will require you to insure your Building and Contents. If you were unable to afford to reinstate the property following a fire, YOU would be in Breach of Contract.
If you arrange your own insurance please ensure that your Insurers will accept tenanted properties. Many do not, and those that do may only maintain cover on a reduced risk basis leaving you vulnerable in the event of a claim.
Please also remember that you MUST inform your insurers that your property is being let and have their acknowledgement confirmed in writing. Failure to do so may mean your insurer refusing to pay out in the event of a claim, due to you failing to declare a material fact.
We can pass your details to PropertyRisks so they can contact you to arrange the insurance. Alternatively, full details of PropertyRisks landlords insurance can be viewed online at www.propertyrisks.com or by contacting them directly on 0845 072 0292 and stating you are a client of Colin Dean.
Disclosure Statement
Colin Dean Residential Limited whose registered address is Roxeth House, Shaftesbury Avenue, Harrow, Middlesex. HA2 0PZ 0208 422 5511, is an introducer appointed representative of PropertyRisks. PropertyRisks is authorised and regulated by the Financial Services Authority.
PropertyRisks’ scheme policies are underwritten by Brit Insurance. PropertyRisks is a trading style of BrandRisks Limited who are authorised and regulated by the Financial Services Authority, registered number 436051.
Not all products mentioned in this brochure are regulated by the Financial Services Authority.
Subject to Acceptance by PropertyRisks and insurers and to meeting underwriting criteria. Terms and Conditions apply. Telephone calls may be recorded.
Safety and Letting your Property – A Landlord’s Obligations
Your Furniture
In a Furnished (or Part Furnished) property the landlord must ensure that his furniture complies with the relevant legislation. Landlords can only provide furniture that meets with strict fire resistance test standards and each item must have a manufacturer’s label confirming that it meets the required specification.
We will inspect your furniture for you and advise on any changes that may be needed. We cannot accept instructions to let any property unless these regulations are fully adhered to. If you do not comply it is a criminal offence.
Furniture and Furnishings (Fire) (Safety) Regulations 1988
Furniture and Furnishings (Fire) (Safety) (Amendment) Regulations 1993
Gas Safety
A Landlord must ensure that gas appliances, and/or installation pipe-work, is kept in safe condition to prevent the risk of injury to your tenants. All gas appliances and pipe-work must be checked annually by an approved contractor registered with the Gas Safe Register and a record of these checks maintained. A certificate confirming compliance must be supplied to all tenants at the commencement of a tenancy and then annually.
We cannot accept instructions to let any property unless these regulations are fully adhered to. We can arrange a boiler service and gas safety inspection and report for you.
Gas Safety (Installation & use) Regulations 1998
Electrical Safety
A Landlord must ensure that any electrical installation and equipment supplied is safe, will not cause danger, and that it satisfies the requirements of the 1994 Regulations. Whilst there is not, at present, any obligation for mandatory safety testing, unless a landlord is an electrical expert, it is unlikely that he will know, without any doubt, that all electrical installations and appliances meet the safety requirements without having his appliances tested.
We cannot accept instructions to let any property unless the Landlord can unequivocally confirm that the property meets the required safety standard. This will usually require an electrical safety test to be conducted. We can arrange a mains wire and appliance safety inspection and report for you.
Any significant electrical works, and all electrical work carried out in a bathroom or kitchen must be carried out by a “certified” electrician or be notified to the building control department of the local authority, and then inspected and approved by them on completion. As a consequence of these regulations we will only employ certified electricians to complete works on behalf of clients.
Electrical Equipment (Safety) Regulations 1994
Plugs and Sockets etc (Safety) Regulations 1994
Part P of Building Regulations 2005
Fire Safety
It is a legal requirement that all homes built after 1992 have a mains operated smoke detector fitted to each floor of the property. It is advised that all homes have installed at least one battery operated smoke detector to each floor of the property and all properties with a gas supply have a mains operated CO2 detector (Carbon Monoxide) fitted close to the main gas appliance. We can arrange this for you.
Smoke Detectors save lives.
Your Income Tax Liability
Income derived from the letting of the property is treated as unearned income for tax purposes. Tax is chargeable on the profit element of the rental income after considering costs incurred in generating that rent.
We are required to advise HMRC (Her Majesties Revenue and Customs) of any properties, which we let and/or manage, and to give details of the precise amount of rental income received by the landlord. We are also required to retain tax due to HMRC if the owner of the property is permanently residing abroad.
The Non-Resident Landlords scheme is run by
HMRC Residency,
Unit 367
St Johns House
Bootle, Merseyside. L69 9BB
Tel: 0845 070 0040
www.hmrc.gov.uk
They co-ordinate the tax liability of all UK non-resident landlords. If you are a UK non- resident, we will be required to obtain an exemption on your behalf before we can pay your rent to you without deducting tax.
Unless we are officially authorised to the contrary, we must collect basic rate tax (currently 20%) on behalf of HMRC and pay this to the HMRC Accounts Office in Cumbernauld. It is essential, therefore, that an exemption is obtained. These exemptions are not transferable and must be in the joint names of the landlord and Colin Dean. We can supply you with the relevant form.
We are not tax experts and do not undertake to offer tax advice in any way. You are advised to obtain Independent Professional advice regarding any tax or financial matters rising from the letting of the property. We recommend that specialists in this field should be consulted and would refer you to your own advisors or indeed to one of the following firms:
Alliotts
10 College Road
HARROW
Middlesex
HA1 1DN
0208 861 1771
Contact: Ian Gibbon
Email: IanG@alliotts.com
A C Tucker & Co
Manor Cottage
18a Waxwell Lane
PINNER
Middlesex.
0208 429 8690
Contact: Alan Tucker
Email: alan@actucker.co.uk
In consequence of the strict regulations regarding your tax liability, We must insist that you advise us immediately if you are, or intend to reside outside the United Kingdom.
For more information please go to: http://www.hmrc.gov.uk/cnr/nr_landlords.htm
Our HMRC registration number is NA010486
Deposits………….what you need to know
From 6th April 2007, landlords may no longer hold deposits on Assured Shorthold Tenancies as a result of legislation brought into effect by the Housing Act 2004 unless they are members of an approved tenancy deposit scheme. Only tenancies which are Assured Shorthold Tenancies are affected by the new tenancy deposit legislation.
There are 3 methods of holding tenants deposits. These are:
The Deposit Protection Service (The DPS)
The only Custodial Deposit Protection Scheme (the deposit is paid over to the scheme to hold). It is free to use and open to all landlords and letting agents.
For more information, visit www.depositprotection.com
Tenancy Deposit Solutions Ltd (TDSL)
A partnership between the National Landlords Association and Hamilton Fraser Insurance. this insurance-based tenancy deposit protection scheme is designed primarily to enable landlords to continue holding deposits.
For more information, visit www.mydeposits.co.uk
The Tenancy Deposit Scheme (TDS)
An insurance-backed deposit protection and dispute resolution service established in 2003 to provide dispute resolution and complaints handling for the lettings industry, including a voluntary deposit scheme for regulated agents which TDS has now absorbed. It is designed primarily to enable letting agents to continue holding deposits, but landlords can also join the scheme.
For more information, visit www.tds.gb.com
Colin Dean are members of The Tenancy Deposit Scheme which is administered by
The Dispute Service Limited
PO Box 541,
Amersham,
Buckinghamshire. HP6 6ZR
Tel : 0845 226 7837 fax: 01494 431 123
Email: deposits@tds.gb.com
We will hold all deposits as stakeholder, and under the terms of The Tenancy Deposit Scheme.
There will be a subscription fee of £25.00 (inc VAT) to subscribe your tenancy into the “tenancy deposit scheme”, which will be charged for each brand new tenancy that commences.
At the end of a tenancy covered by The Tenancy Deposit Scheme (TDS)
Managed Tenancies
If we are managing your tenancy, a “check-out” will be conducted at the tenants expense at the end of the tenancy, using the inventory which was prepared before the tenant moved in. The inventory clerk will then prepare a check out report detailing any discrepancies with the original inventory. Our property managers will then negotiate between you and the tenants regarding any deductions that may be necessary from the deposit.
Non-Managed Tenancies
If we are not managing the tenancy, a check out will be conducted at the tenants expense, and a check out report will be sent to both you and the tenant. You will need to reach an agreement with the tenants as to what, if anything, should be deducted from the deposit to meet the cost of cleaning, repairs etc. We will require either a letter from both landlord or tenant, or a completed “deposit return form” signed by both parties before we can repay the deposit held.
If there is no dispute we will keep any amounts agreed as deductions where 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 the tenant. Payment of the deposit will be made within 10 working days of receipt of written consent from both parties
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, ther remains an unresolved dispute between the landlord and the tenant over the allocation of the deposit it will (subject to clause B5.3 below) be submitted to the Tenancy Deposit Scheme for adjudication. All parties agree to co-operate with any adjudication.
When the amount in dispute is over £5,000 the landlord and the tenant will agree by signing of the tenancy agreement to submit the dispute to formal arbitration through the engagement of an arbitrator appointed by the scheme although, with the written consent of both parties, The Scheme may at its 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 Limited 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
The statutory rights of either the landlord or the tenant to take legal action against the other remain unaffected.
It is not compulsory for the parties to refer the dispute to the TDS 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 TDS for adjudication. If the parties do agree that the dispute should be resolved by the TDS, they must accept the decision of the TDS as final and binding.
If there is a dispute we must remit to the Dispute Service Limited 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 Limited will take appropriate action to recover the deposit and discipline us. We must co-operate with the TDS in the adjudication of the dispute and follow any recommendations concerning the method of the resolution of the dispute.
What is an HMO?
If you let a property which is one of the following types it is an HMO ( House in Multiple Occupation):
· a house or flat which is let to 3 or more tenants who form 2 or more households and who share a kitchen, bathroom or toilet.
· a house which has been converted entirely into bedsits or other non-self-contained accommodation and which is let to 3 or more tenants who form two or more households and who share kitchen, bathroom or toilet facilities.
· a converted house which contains one or more flats which are not wholly self contained and which is occupied by 3 or more tenants who form two or more households.
· a building which is converted entirely into self-contained flats if the conversion did not meet the standards of the 1991 building regulations and more than one-third of the flats are let on short-term tenancies.
In order to be an HMO the property must be used as the tenants’ only or main residence and it should be used solely or mainly to house tenants. Properties let to students and migrant workers will be treated as their only or main residence and the same will apply to properties which are used as domestic refuges.
Licensing is aimed at raising management and amenity standards in the rented property sector. Houses in Multiple Occupation (HMOs) in particular are often poorly managed and in poor physical condition. Licensing will raise the standards of such accommodation and will also ensure that landlords are managing their HMOs to the required standards.
Under the national mandatory licensing scheme an HMO must be licensed if it is a building consisting of three or more storeys and is occupied by five or more tenants in two or more households.
Local Housing Authorities such as Harrow and Brent have the power to widen the remit of licensing to also include other smaller HMOs if they think that enough of them in an area are badly managed, and in these areas properties which house 3 persons which comprise 2 or more households who share a kitchen, bathroom or toilet will require to be licenced.
Mandatory HMO licensing came into force from 6 April 2006. An HMO licence will normally last for up to five years. Local authorities have been allowed to set fees at their own discretion but these fees must reflect the actual costs to the local authority of HMO licensing. Landlords should contact the local authority in which a property is situated, to find out the cost of the licence fee. For example, in harrow the licencing fee is £641.50 . A separate licence is needed for each property.
In order to grant a licence for an HMO a local housing authority has to be satisfied that the proposed licence holder and manager is a fit and proper person, and that proper management standards are being applied at the property.
The government has specified minimum amenity standards, setting out the requirements for kitchens, bathrooms and toilets in an HMO. Local Housing Authorities may use their own amenity standards if they are equal to or higher than the minimum standards. You should contact the local housing authority in which your property is situated to find out the standards you will have to meet. If your property does not hold enough amenities for the number of tenants the local housing authority can either grant a licence with conditions that extra amenities will be put in or grant a licence for a smaller maximum number of occupants based on the amenities which are installed.
In some cases an inspection may be necessary in order for the local housing authority to be satisfied that the property is suitable for licensing. Inspections will also allow the local housing authority to prioritise properties for inspection under the Housing Health and Safety Rating System (which replaces the former Fitness for Human Habitation test).
The Housing Health and Safety Rating System (HHSRS)
The HHSRS will apply across all residential premises and is concerned with avoiding or minimizing potential hazards. The Local Housing Authority has to satisfy itself that there are no category 1 hazards (the most severe hazards) in licensable HMOs within 5 years of receiving a licence application. This may require them to carry out an HHSRS inspection on a property. They may choose to make this inspection when deciding whether to grant a licence or they may decide to inspect at a later date.
Under the HHSRS, a landlord may have to carry out work to remedy any identified hazards. The sort of work that needs to be carried out and the severity of the enforcement measures will vary depending on how serious the problem is.
Landlords may not evict existing tenants to avoid licensing or to comply with the maximum number of occupants allowed in the property. It is considered reasonable that the tenants were in occupation at the time the licence was granted and landlords will not be penalised. However, when the tenancy comes to an end, landlords or agents will be committing an offence if new tenants are allowed to move in bringing the total occupants above the maximum number permitted under the licence.
A landlord commits an offence if he knowingly lets a property to more people than it is licensed to hold. In the interests of good management standards you should be aware of who is living in your property at all times. However, if you are genuinely not aware that there are more people living in your property than it is licensed to hold then you may have a reasonable excuse. If you knowingly accept rent from the additional occupants (whether or not you know they are tenants) this could be taken to mean that you know that they are living in the property. If guests come to stay with the tenant then provided that they are staying there as short-term guests and are not paying rent and using the property as their main or only residence they will not count towards the number of occupants.
More information about HMO’s and HHSRS can be obtained from
Department of Communities and Local Government
www.communities.gov.uk/index.asp?id=1503291
London Borough of Harrow
www.harrow.gov.uk/ccm/content/housing-and-planning/private-housing/services-for-landlords.en?page=5
London Borough of Brent
www.brent.gov.uk/hsgprivat.nsf/0/26d677117e6cd04180256b89003aab15?OpenDocument
Ealing Council
http://www.ealing.gov.uk/services/housing/hmos/
We can assist you in deciding if your property needs to be licenced, in completing your application forms and upgrading your property if required.