Terms of Business for Landlords - Northfields
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Terms of Business
for Landlords
Northfields
CONTENTS
Overview - page 4 n Courts and tribunals - page 18
n Instructions of solicitors - page 18
n Our Agreement - page 4 n Renewals to the same tenant - page 18
n Termination - page 4 n Right to rent in the UK – Documentation
n Gen. Data Protection Regulations - page 5 and Working Visa - page 19
n Interest on client monies n The Deregulation Act 2015 - page 19
and commission - page 5 n Rent and Legal Insurance
n Money laundering - page 5 Products - page 20
n Protecting clients money - page 5 n Energy Supplier - page 21
n Tenant Fees Act 2019 - page 21
Comprehensive Lettings Service - page 6
The Security Deposit - page 22
n Range of services - page 7 n What is included - page 22
n Important information - page 23
Full Management - page 8
n Types of tenancy exempt from
n Range of services - page 9 legislation - page 23
n What is included in our n Using your own scheme? - page 23
Full Management Service - page 10
n What is NOT included in our Deposit Replacement- page 24
Full Management Service - page 13
n Definitions - page 25
Information for all Services - page 14
Complaint Procedure - page 26
n Terminating the tenancy - page 17
n Using a Break Clause - page 17 Office Hours - page 27
n Landlord & Tenant Act 1987
section 47 - page 17 Ready to Proceed - page 28
n Landlord & Tenant Act 1985
sections 1 & 2 - page 18 n Pre-Instruction Landlord
n Inventory services - page 18 checklist - page 29
n Housing benefit payments n Confirmation of instruction - page 30
(if applicable) - page 18
n Important information - page 31
n Water rates and water
meter charges - page 18 n Your right to cancel - page 33 & 34
V0121 3
OVERVIEW
Our Agreement in plain English
Northfields Estates Limited trading as Northfields
Registered Office and Trading Address: 2
8 Church Road, Stanmore, Middlesex, HA7 4XR.
n We trade as a limited company registered at Companies House Registration Number: 02357461.
n Our VAT number is: 532316672.
nW e are members of the dispute and compensation scheme operated by The Property
Ombudsman (www.tpos.co.uk) and our registration number is: NOO186.
n These Terms of Business will supplant any previous Terms of Business with Northfields in their
entirety, unless stated otherwise.
n This Agreement shall be governed by and construed in accordance with the law of England
and Wales and the courts of England and Wales shall have the exclusive jurisdiction in respect
of any dispute under it.
n Any legal proceedings to be served in respect of this Agreement, which are to be served outside
the jurisdiction, shall be deemed to be sufficiently served if they are sent by ordinary first class or
airmail post or its equivalent and it is agreed that all legal proceedings may be served in English
without the necessity for translation into any other language.
n The provisions for the service of notices are that if either party deliver by hand any notices or
documents which are necessary under this Agreement, or any Act of Parliament, to the other party
by 5pm, to the last known address of the other party, the documents or notices will be deemed
delivered on the next working day which excludes Saturdays, Sundays and Bank holidays; or if
any documents or notices are sent by registered, or recorded delivery post the documents will
be deemed delivered upon proof of delivery being obtained; or if the documents or notices are
sent by ordinary first class post addressed to the other party or the last known address of the
other party; the documents or notices will be deemed delivered two working days later, which
excludes Saturdays, Sundays and Bank holidays. The address for service for the Landlord will
be the contact address specified in this Agreement and the address for service for us will be;
130 Northfield Avenue, Ealing, London, W13 9RT.
n We will not be responsible for any loss or damage that you suffer through the act, default or
negligence of any third party which may arise other than through our negligence, omission or
failure.
n The Contract (Rights of Third Parties) Act 1999 does not apply to this Agreement.
n Termination
Either party has the right to terminate this Agreement in writing and by providing 3 months
written notice:
a. upon the occupier’s vacation of the premises and providing 3 months written notice.
b. if we break any important term or condition of this Agreement during the term of an
occupancy agreement, where thirty days written notice of the breach has been given by
the other party, the breach has not been remedied and monetary compensation is wholly
inadequate.
c. if you are in major breach of any of the terms contained in this Agreement or if you do or
do not do something which makes it impossible, impractical or illegal for us to continue to
perform our obligations under this Agreement.
d. either party carries out or suggests that the other should carry out any form of unlawful
discrimination or activity.
If we terminate this Agreement for any reason you will remain liable for our commission at
the agreed Comprehensive Lettings Service percentage and for any fees or costs we might
incur on your behalf in transferring our obligations to you or to someone you might nominate.
n We reserve the right to assign our rights or obligations under this Agreement upon giving
you one month’s written notice.
n These terms and conditions may be amended at any time by Northfields providing you with at
least 14 days’ written notice (including by email).
4 V0121
OVERVIEW
General Data Protection Regulations (GDPR)
n
In order to comply with the General Data Protection Regulations to prevent any unauthorised
access to or use of personal data we have the responsibility to keep your information and that
of any tenant or occupier confidential and will only use it if fees are not paid and we wish to
refer the matter to a debt collector or solicitor; or if we are specifically required to do so by law;
or to pass on to a government agency by law; when instructing solicitors; to change account
details for utility suppliers and the council tax into or out of your name (where applicable); or
when a contractor’s invoice has not been settled by you.
n Interest on client monies and commission
Any interest accrued on monies that we hold on your behalf will be retained by ourselves to
cover bank and administration charges etc. Any commission earned by us while acting on your
behalf will be retained to cover costs, which could include commission from contractors.
n Money Laundering
In order to comply with the Proceeds of Crime Act 2002 and the Money Laundering Regulations
2017 we require you to provide us with one proof of identity and one proof of residence (dated
within the last 3 months), which can be selected from the lists below (List A - Identity, List
B - Residence). You should either send us the original documents for copying and returning
to you; or provide us with copies certified by a solicitor as genuine. Alternatively you can visit
any local branch with the original documents and we can copy them and immediately return
them. We apologise but we will not be able to accept printouts of online bank statements or
utility bills
List A: n Full passport List B: n
Council tax bill
n National identity card n Utility bill
n Full driving licence n Mortgage statement
n Bank statement
n Credit or charge card statement
If you are a Public Limited Company we will require a certified copy of the Certificate of
Incorporation. If the company is not quoted we require certified copies of any two of the following
documents:
n ‘Memorandum and Articles of Association’
n ‘Certificate of Incorporation’
n A set of your latest accounts
n The most recent annual ‘Companies House’ return
In addition we need proof of identity and residence of all company directors/shareholders with
25% shareholding or voting rights.
n Protecting clients money
As members of Safeagent we are duty bound to protect all money held on behalf of our clients.
In the unfortunate event that any rent, deposit or other client funds are misappropriated, then
Safeagent will consider an application to compensate you.
The Client Money Protection Scheme will compensate an applicant, Landlord, Tenant or
Management Company up to a limit of £25,000. Landlords are limited to a maximum of
three months’ rent. The total maximum payable in respect of a member company would be
£300,000. In any one year the scheme has a limit of £5 million. The length of time that an
application takes to be completed will depend on the information provided by the applicant
and the circumstances of the application. Claims MUST be made within 12 months of the
date of notification of the misappropriation occurring. For more information please visit:
www.safeagents.co.uk
V0121 5
COMPREHENSIVE
LETTINGS SERVICE
S
“ pecifically designed to cover all aspects
of the lettings process, checking and chasing,
so you don’t have to”
6 V0121
COMPREHENSIVE LETTINGS SERVICE
13.2% inc VAT (11% plus VAT) of the rent
Range of Services
nA
n initial visit to your property by an experienced lettings professional resulting in an accurate
assessment and market appraisal of your property.
n Advice on regulation and legal aspects of lettings.
nA
dvice on strategic marketing to present your property including impartial advice on property
presentation and refurbishments.
nP
rominent property display on Northfields website and multi-listing with Rightmove, Zoopla
and Prime Location.
n Display prominent ‘To Let’ and ‘Let By’ boards (unless instructed in writing to the contrary).
n Select registered applicants who fit your Tenant criteria.
n Accompanied viewings by a member of our experienced lettings team.
nW
e will inform you of appropriate offers and will negotiate with prospective Tenants in
accordance with your instructions.
n Outsourcing to professional referencing company to reference prospective Tenants.
nD
rafting of tenancy agreement and relevant documentation using ‘Docusign’ a provider of
electronic signature technology for your convenience.
n Reviewing property rents and negotiating rent increases and renewals where applicable.
In addition to the letting fee, there is a charge for the provision and preparation of our Tenancy
agreement:
n £354 inc VAT (£295 plus VAT) at the outset of the original Tenancy.
n £120 inc VAT (£100 plus VAT) for renewal documentation.
nR
egistering the tenants deposit with the TDS or administrating a deposit replacement product
for a monthly charge of £8 inc VAT (£6.67 plus VAT) per calendar month.
n Mid-tenancy addendum £120 inc VAT (£100 plus VAT).
n Administration fee for periodic tenancy £120 inc VAT (£100 plus VAT) per annum.
nT
o ease your cash-flow, we will accept your fees paid on a monthly basis from the rent as it
arrives into our account.
nC
ollection of rent by standing order* with rent transferred into your bank account electronically
within 6 working days of receipt with a statement of account of rent emailed to you.
n Incoming monthly rent monitored on a weekly basis and rent arrears procedure implemented
in the event of non payment.
n I n the event of court action being required for tenancy breaches under rent arrears, a complete
log of payment history and credit control processes will be provided to you or your solicitor
upon request where we process the rent.
n The minimum letting fee for a 12 month tenancy is £1,200 inc VAT per annum (£1,000 plus VAT)
nS
hould you instruct your tenants to pay rent directly to you or any third party then our letting
commission for finding you a Tenant is payable upfront upon the commencement of the
Tenancy for your property. It is calculated on the length of the initial fixed term of the Tenancy.
Our fee for any continuation of the tenancy shall remain due and payable at the time of the
extension or continuation based on the term of the continuation agreed.
Please note: Fees remain due for the entire period that a Tenant, introduced by Northfields,
remains in your property, either on a fixed term, periodic or other tenancy type whether or not we are
party to or undertake any negotiation of the extension or continuation on your behalf.
n Serving statutory legal Section 21 notices for possession in accordance with the 1988 Housing Act
and presentation of prescribed information as required (additional charge of £114 including VAT).
*Please also see page 17 with regards to payment of rent by standing order
V0121 7
FULL
MANAGEMENT
“For total peace of mind, let our experts
handle everything for you and you will know
that your property is in very safe hands”
8 V0121
FULL MANAGEMENT
“With over 154 different regulations to comply with
when letting your property (and growing!), I really
believe it is vital that landlords have a local professional
agent who ensures the property is looked after in the
best way possible, ensuring total compliance. The
potential fines for breaking or breaching even minor
rules are high and some breaches can carry a prison
sentence or stop you from regaining possession of
your property. The majority of our clients choose our
Full Management service, where you will be allocated
a property manager who is based in our Northfield
Avenue branch, to oversee your property and be the
point of contact for yourself and your tenant. We can offer access to the right legal
advice, a panel of reliable contractors and we are pleased to be able to offer rent and
legal insurance for your additional peace of mind.”
Aimee Bruce
Head of Lettings
19.2% inc VAT (16% plus VAT) of the rent
In addition to all of the provisions of our Comprehensive Lettings Service, the Full
Management Service is designed to take care of everything, so that you can just get on
with your busy life, watch the rent come in and know your property is in safe hands.
Additional Services
These services are in addition to those listed as part of our range of services in the Comprehensive
Lettings service section.
n Access to Northfields online property management and maintenance area with 24
hour emergency helpline for your tenant’s peace of mind.
n Financial annual statement for you and / or your tax advisor if requested.
n Negotiation of the deposit release to landlord and tenant.
n Co-ordination with local reputable contractors for property maintenance.
n Secure holding of your property float within our ring-fenced client account.
n Annual one-to-one meeting with a Director of the business to discuss your Property
portfolio (at your request).
n Arrange professional cleaning at check-in and check-out subject to Landlords instructions*.
n Ensure properties are fully compliant in accordance with all current legal safety obligations*.
n Arrange Revelvant safety and compliance checks*.
n Arrange property schedule of condition, inventory check-in and check-out visits*.
n Scheduled regular property visits with report and photographs by post or email.
*Subject to additional charge and funds being available
V0121 9
FULL MANAGEMENT
n Day-to-Day
Maintenance
e will deal, without further prior notification, with day-to-day management matters, including
W
minor repairs up to a maximum figure of £300 inc VAT for any one item, except in an emergency
(where the risks to your premises or the life of an individual are significant) where the amount
is unlimited.
Except in the case of any emergency or to enable you to comply with statute, wherever
practical, an estimate is obtained and submitted to you for approval for works of redecoration,
renewal or repair, likely to cost more than £300 inc VAT.
By signing this agreement you agree that we can instruct contractors on your behalf and
deduct the cost of repairs and maintenance from the rent or the fund held against your
property. Please note that you shall always remain liable for the payment of all invoices to
third party contractors.
n R
epair Fund (Float)
We shall retain from the first payment made by the occupier after all commission, fees, costs
and expenses have been paid, the sum of £300, which will be held to create a repair fund.
We will continue to retain enough money from subsequent payments with such monies again
being added to the repair fund to ensure it is maintained at the same level throughout the
tenancy.
If your tenant pays their rent in advance, ie. 6 or 12 months in one lump sum at the start of the
tenancy, the float amount will be £500 (as there will not be any rent coming in on a monthly
basis to pay for repairs and it is not possible to instruct contractors to carry out work unless
money is held against the property to cover the final bill).
If the cost of the repair is in excess of funds held we will request additional funds, payable
upon demand.
If you are a non-resident landlord (ie. you are out of the UK for more than 6 months per year)
we may require a higher float to be held against the property as it may be harder to reach you
in an emergency. We cannot withhold from carrying out urgent works at your property and we
cannot proceed with works at your property until the relevant funds are in place.
nA nnual Gas Safety Certificate and Boiler Service
For the avoidance of doubt we shall automatically instruct a contractor to carry out an annual
gas safety certificate and service the boiler, the cost of which will be charged to your account,
without further prior notification to you. Should you wish to make alternative arrangements
you will need to ensure that you make us aware of this at least one month prior to expiry and
a valid certificate is provided to us prior to the expiry of the previous certificate otherwise we
shall reserve the right to obtain a new certificate on your behalf.
nP ortable Appliance Testing (PAT) Electrical items
For the avoidance of doubt we shall automatically instruct a contractor to carry out an annual
PAT test, the cost of which will be charged to your account, without further prior notification
to you. Should you wish to make alternative arrangements you will need to ensure that you
make us aware of this at least one month prior to expiry and a valid certificate is provided to
us prior to the expiry of the previous PAT certificate otherwise we shall reserve the right to
obtain a new PAT certificate on your behalf.
nE lectrical Installation Condition Report (EICR)
For the avoidance of doubt we shall automatically instruct a contractor to carry out an
EICR every 5 years, the cost of which will be charged to your account, without further prior
notification to you. Should you wish to make alternative arrangements you will need to ensure
that you make us aware of this at least one month prior to expiry and a valid certificate is
provided to us prior to the expiry of the previous EICR certificate otherwise we shall reserve
the right to obtain a new EICR certificate on your behalf.
10 V0121FULL MANAGEMENT
n G
eneral Maintenance
We reserve the right to arrange for any cleaning and garden maintenance necessary to put
the property in order before or after the tenancy (additional charge). Where we manage a
property it must be professionally cleaned prior to occupancy.
nN otification of Defects
We have an emergency phone number to receive calls out of office hours and a full spectrum of
qualified and insured contractors on standby all year round so that tenants are able to notify us of
any issues or problems immediately and these can be rectified swiftly.
P
n roperty Visits
We shall endeavour to visit the premises approximately every 6 months, provided that the
tenant grants us access. Visits can be carried out more frequently if requested in writing and
deemed necessary by you or us. Additional visits will be subject to a charge of £72 including
VAT.
If the tenant does not grant access we shall inform you, but it will be your responsibility to
take legal advice and advise us of the appropriate action. These visits are of a limited nature in
order to verify the general good order of the premises and the proper conduct of the tenancy
by the tenant. A visit will not constitute a complete check of every part of, or every item, in
the premises, but will enable us to note any lack of repair or maintenance, which should be
brought to your attention. A visit will only note repairs of which we are informed, or which are
clearly visible. We are not liable for any loss or damage due to hidden or latent defects.
nG eneral Outgoings
We will pay out of rents received current outgoings such as ground rent, insurance premiums,
service charges and/or maintenance charges or similar contribution to shared expense and
account to you regularly. You are expected to instruct your insurance company, the local
authority, the utility companies, your block managing agent etc, to send their accounts to us.
Although we shall do our best to query any obvious discrepancies it must be understood that
we are entitled to accept and pay without question demands and accounts which appear to
be in order. In particular, we cannot accept responsibility for the inadequacy of any insurance
cover or for the verification of service/maintenance charges demands or estimates where
applicable. It is important that we receive full written instructions regarding any insurance
premiums you wish us to pay.
nC ontractors
We shall use a particular contractor if requested by you, provided we have copies of their
professional qualifications, public liability insurance and that they are readily available. We shall
try to arrange a mutually convenient time for contractors to meet the tenant when attending
the premises to undertake work on your behalf. Where this is not possible, we may be able
to arrange to meet the contractor at the premises ourselves. We will charge a waiting time at
the premises of £36 inc VAT (£30 plus VAT) per half hour or part thereof in addition to the
invoice of the contractor. Alternatively, if the tenant is in agreement the contractor may access
the property using the supplied set of management keys. We do not meet contractors if we
do not manage the property on your behalf. We will hold a set of keys to the front door of the
property to allow ease of access to the property for repairs and maintenance. The Landlord is
responsibile for providing this set of keys in addition to one set per tenant.
O
n ur Liability for Contractors
All contractors, whether arranged by us or by you, are engaged on your behalf. Although we
will, on request, supervise the works (subject to £72 inc VAT (£60 plus VAT) per hour or part
thereof) we cannot accept responsibility or liability for them. In addition we are not liable
for any loss or damage suffered by you if we are unable to carry out repairs or maintenance,
because we do not hold any or sufficient funds, unless the loss or damage is due to our
negligence or breach of contract.
V0121 11FULL MANAGEMENT
n I nventory and Schedule of Condition
We will automatically arrange the preparation of a full Inventory or Inventory update and a
Schedule of Condition at the outset of the tenancy and will arrange for an Inventory Clerk to
check the new tenant into the property. Please confirm the cost with the lettings team.
n D
eposit Dispersal
We will act as your representative to review the check-out against the check-in and discuss
with you any deductions to propose to the tenant. We shall then negotiate on your behalf.
Please refer to the guidelines of the Tenancy Deposit Scheme independent case examiner for
information regarding deposit dispute procedures. Should any remedial works be required we
can organise these on your behalf, subject to funds being available, with a view to you being
compensated as part of the deposit release process as appropriate.
Should you require that we submit evidence to the independent case examiner on your behalf
we shall charge £240 (inc VAT) for the preparation of the submission.
nM eter Reading
It is sometimes not possible to access the meters at the outset of the tenancy and, in these instances,
we will request the utility company or tenants to read the meter. Northfields will not be liable for any
period where it has not been possible to confirm the meter readings.
We shall endeavour to obtain a forwarding address for your tenant at the end of the tenancy
and will notify utility companies accordingly, however, we cannot accept any responsibility for
unpaid utility bills at the end of the tenancy.
n Insurance Claims
We will report to you if we consider that a claim is appropriate, and await your instructions. Any
insurance claim work undertaken on your behalf will be subject to an administration charge of
12% inc VAT (10% plus VAT) of the claim amount plus VAT (there is a minimum charge of £120
inc VAT (£100 plus VAT).
Please Note: Many insurance companies will insist on contractor invoices being settled by you
initially prior to releasing the claim payment to you.
nA gent of Necessity
Northfields reserves the right to undertake repairs without notice to you if you are either
unavailable, after reasonable enquiry, or we consider the repair to be an emergency. In these
circumstances if we act as agent of necessity you undertake to fully reimburse us, upon
demand, for any shortfall over any monies we hold.
n Cessation of Management
Either party may withdraw instructions to manage the premises, upon giving 3 months
notice, however, our fee for the Comprehensive Lettings Service remains payable (page 8).
Please also refer to the section regarding termination as detailed on page 4 of this Agreement.
12 V0121FULL MANAGEMENT
What is NOT included in our Full Management Service?
n Post
We will NOT arrange for re-directing the post if it continues to be delivered to the property
so please ensure that you make adequate arrangements for this, either with the Royal Mail or
by leaving sufficient stamped addressed envelopes for the tenants to forward mail to you. It
is respectful to ask the tenant if they mind doing this, as they may find it intrusive.
n Improvements / Replacements
Our Management Service is designed to organise and oversee repairs to the property and
NOT improvements or refurbishments. Where Northfields have been requested to replace
any of the contents, fixtures or fittings in the property, the charge for taking your instructions,
selecting the item and arranging for installation at the property will be 12% inc VAT (10% plus
VAT) of the suppliers total invoice, with a minimum charge of £42 inc VAT (£35 plus VAT) to
cover administration.
n Miscellaneous Duties
Outside of usual property management requirements, staff will NOT attend the property for
the purpose of giving access to visiting trades people, delivery persons, etc. If an arrangement
is made to attend the property on your behalf, this will be at the charge of £72 inc VAT (£60
plus VAT), per hour or part thereof.
VACANT MANAGEMENT
here the tenancy has finished and no notice to terminate management has been given we shall
W
provide a vacant management service to you. We will visit the premises once every 2 weeks
during office hours (being Monday to Friday, between 9am & 5pm) and we will forward any
post and inform you of any lack of repair or maintenance, however, will not instruct a contractor
unless we hold cleared funds, and you confirm in writing that we may deduct the cost of the
contractor from those funds. Our administration fee for these void property visits is £36 inc VAT
(£30 plus VAT) per visit.
V0121 13INFORMATION
FOR ALL SERVICES
“The section which answers all of your more
specific queries”
14 V0121GENERAL INFORMATION
nT axes Management Act & Non Resident Landlords
You are responsible for notifying the Inland Revenue of the tenancy and for your own tax
liability if you reside within the UK. If you reside abroad for 6 or more months of a tenancy,
the Inland Revenue will hold us, as your managing agent (or your tenant where the tenant
pays the rent directly to you), responsible for the payment of any tax liability which arises on
rents collected by us on your behalf, unless an Approval Certificate is provided by the Inland
Revenue pursuant to The Finance Act 1995. You can apply for Inland Revenue exemption by
filling out an NRL1 form quoting Northfield’s reference number: NA 010715.
More information is available at: www.hmrc.gov.uk/international/nr-landlords
t. 0300 200 3300/+44 135 535 9022
If the Inland Revenue do not provide Northfields or your tenant (for let-only tenancies) with a
valid approval certificate, it will be necessary for tax to be deducted at source at the appropriate
rate (currently 20%). This money will be forwarded on a quarterly basis to the Inland Revenue
and you are advised that the money will not earn interest on your behalf. The eventual liability
for tax may be less than the amount forwarded to the Inland Revenue and, in this event, you
will have to liaise with the Inspector of Taxes directly for any re-imbursement, and Northfields
will not be liable for any refunds to you.
Should you at present reside within the UK but subsequently move abroad, please let us
know the name of your accountants or tax advisors at that time. In the event that you are not
accepted for the Non Resident Landlord Scheme, we shall make an administration charge of
£42 inc VAT (£35 plus VAT) per quarter for forwarding monies to the Inland Revenue.
nH MO Licensing
Since 2006 there has been a requirement to have a Mandatory license for properties where
the property is over three storeys, there are two or more households and there are five or
more people living in the property. Local councils have also been allowed to require licenses
under ‘additional’ and ‘selective’ schemes.
From 1st October 2018 a Mandatory License is required where the property is occupied by 2
or more households and there are 5 or more people thus removing the ‘3 storey’s requirement.
There are some exemptions.
As a landlord you need to ensure that you are familiar with the local licensing requirements
and are compliant with them. Penalties for non-compliance can be an unlimited fine as well
as not being able to serve notice to take back possession of the property. License requirements
can be driven by the location of the property or the mix of the tenants so it is very important
to consider these factors when looking to let. Your local branch or council can give you further
specific guidance and assist with any application (additional charges apply.) Also see local
links below :
https://www.ealing.gov.uk/info/201086/housing_and_council_tax/2201/private_rented_property_licensing
https://www.lbhf.gov.uk/housing/private-housing/property-licensing-landlords-and-letting-agents
orthfields are happy to oversee your HMO application on your behalf and can, where
N
appropriate, stand as the ‘fit and proper person’ where we are instructed under our full
management service. There is an additional cost for this service. Please ask your local
branch for a leaflet.
nE
nergy Performance Certificate (EPC)
The Energy Efficiency (Private Rented Property)(England and Wales) Regulations 2015
mean that, from April 2018, private non-domestic (and domestic) landlords must ensure
that properties they rent in England and Wales reach at least an EPC rating of E before
granting a tenancy to new or existing tenants. A valid EPC, issued by a Domestic Energy
Assessor, must be available to prospective viewers at the commencement of marketing and
we shall ensure that a copy of the EPC is provided to the tenant prior to the commencement
of the tenancy. Northfields are happy to arrange an EPC on your behalf at a cost of £120
incl VAT.
V0121 15GENERAL INFORMATION
We know that there is a lot of information contained within this booklet but please understand
our wish to ensure that you have all of the information that you need before you decide to rent
out your property, and are legally compliant.
We urge you to take the time to read the contents in full and ask us about anything you do
not understand.
n Consents and Checks
As a helpful reminder you should ensure that all items below are adhered to in full:
Mortgage Consent
Superior Landlord Consent
Buildings Insurance that adequately covers your rental property
Contents Insurance including public liability insurance
Energy Performance Certification
Safety Certification for:
Gas appliances
Electrics checked – fixed wiring (EICR)
Electrics checked – portable appliances if applicable (PAT)
Working smoke detectors on every floor
Legionnaires risk assessment
Furniture and furnishings safety compliance check
Asbestos check
C
O (carbon monoxide) detectors fitted and working within 1.5m of any
solid fuel appliance
nT he Rent
Unless otherwise agreed, the rent achieved by us on your behalf will be inclusive of all outgoings
for which you are responsible ie. ground rent, service charges, buildings insurance etc. with
the exception of gas, electricity, water, telephone line rental, council tax and where there is an
independent heating system. If you pay water rates (or similar) as part of your service charge and
wish to pass this charge onto your tenant please ensure you have notified Northfields of this and
the relevant clauses are contained within the tenancy agreement.
nR ent Remittances
The tenant is requested to pay the rent directly into the bank by standing order mandate. If the
tenant does not wish to pay in this manner and adopts a different payment method, it is not
possible to enforce the standing order payment method and court action can only be taken if the
rent is in arrears as per the grounds listed in the tenancy agreement.
Rent less agreed deductions will be transferred by BACs as soon as administratively possible. Any
monies dispatched will be without prejudice to final clearance.
Please Note: By accepting rent by standing order, should the tenant breach the terms of their
agreement, the continued payment of rent may be deemed by a court as a waiver by you of the
tenant’s breach. Therefore, in the event that we do not manage your property you must notify
the tenant immediately following any breach that monies received by standing order are to be
regarded as “mense profits”, basically money taken for the continued use and occupation of the
premises and NOT RENT.
n Type of Tenancy Agreement
Unless we are instructed otherwise, we will use our standard form of tenancy agreement. Landlords
instructing their own solicitors to prepare an agreement will be responsible for their solicitor fees,
however, an additional administration charge of £200 inc VAT will remain due to Northfields at
the outset of the Tenancy because, as your agent, we have a duty of care to fully understand and
advise on the contract you wish to use.
16 V0121GENERAL INFORMATION
n Terminating the Tenancy
A) Termination of an Assured Shorthold Tenancy
To regain possession of your property at the end of an Assured Shorthold Fixed Term Tenancy
you MUST give the relevant notice to your tenants and have provided (with proof) all relevant
prescribed information and other documents, as required by the Deregulation Act 2015, at the
outset of the tenancy:
n You MUST give at least 2 calendar months written notice. Northfields will be happy to issue
the tenants with a Form 6A Section 21 Notice to this effect upon your instructions and
where the tenancy agreement has been provided by Northfields. You shall be charged £114
(including VAT) for the serving of the notice.
n This notice will not be issued automatically. Therefore, unless you request Northfields to
serve notice on the tenants and if the tenant does NOT leave at the end of the fixed term;
the tenancy will become a Statutory Periodic Tenancy.
n At this point and at any time within a Statutory Periodic Tenancy you will be required to
serve 2 periods notice to regain possession of the property. Northfields will be happy to
issue the tenants with a Form 6A Section 21 Notice to this effect upon your instructions and
where the tenancy agreement has been provided by Northfields.
n In the event of the landlord wishing Northfields to serve notice on the tenant, you must give
us a minimum of 1 weeks notice, in addition to the notice period required for the Tenant.
Please Note: The tenant can vacate at the end of a Fixed Term tenancy without giving notice
to the landlord, however, within a Statutory Periodic Tenancy, the tenant must give one periods
notice to end the tenancy. One period is calculated in accordance with the rental payments.
B) Termination of a Non-Housing Act Tenancy
A company tenancy, a high rent tenancy (over £100,000 pa pure rent), a tenancy with a
resident landlord or a pied-a-terre tenancy will end according to the dates contained within
the initial fixed term of the agreement, called the “effluxion of time” and although formal
notice is not required, both parties have a duty of care to give reasonable notice to the other
party. Generally one month’s notice will suffice or notice can be given in accordance with
any break clause contained within the tenancy. If the tenant remains in the property and no
replacement tenancy is put in force so that the original tenancy becomes a periodic or rolling
tenancy, the landlord must serve a Notice to Quit giving at least one periods notice to end the
periodic tenancy.
PLEASE NOTE THAT COVID-19 MAY IMPACT THE NOTICE PERIOD AND YOU ARE ADVISED TO
CONTACT YOUR LOCAL BRANCH FOR UPTO DATE INFORMATION
n Using a break clause
If you have negotiated a break clause in the tenancy agreement and the tenant exercises their
right to this clause Northfields will refund any upfront lettings service commission paid or due
for the unexpired period providing all three criteria listed below have been met:
1. At least 6 months of the tenancy has lapsed
2. We are given 6 weeks exclusivity to re-market the property
3. We are unable to introduce a suitable tenant within the 6 week period of re-marketing
In the event that we are not given the opportunity to re-market the premises, no refund will be
given. If we are able to secure a new tenancy covering the remaining period, our commission
for the second letting will apply as normal, and we will credit your account for the period of
overlap with the original fee. You will therefore not pay twice for the same period. Should you
agree to release the tenants from their tenancy agreement before any break clause expires,
no refund of fees shall be due before the period where the break clause would have allowed
the tenancy to be terminated and fees will remain due where not yet paid to the earliest break
clause expiry date.
nL andlord and Tenant Act 1987 Section 47
We are obliged to include your full name and address on all rent demands (tenancy agreements).
If your address is outside England and Wales, then we must provide the tenant with an address
within England and Wales to which notices (including notices in proceedings), may be served
on you. Unless otherwise instructed, if your address is outside England and Wales and we
manage your property, we will use the address of our management department during such
period as we manage the property. We will use our best endeavours to forward any notices to
you promptly but we cannot accept liability for any loss or damage incurred either directly or
indirectly from our actions in this respect.
V0121 17GENERAL INFORMATION
n Landlord and Tenant Act 1985 Sections 1 and 2
If the tenant makes a written request for your actual address, wherever in the world you may
be, it is a criminal offence to withhold the information and it must be provided within 21 days
of receipt of the request, otherwise you may be liable upon conviction to a maximum fine of
£2,500. If you, as the landlord, are a limited company or body corporate, upon written request
by the tenant, you are obliged to provide the name and address of every director and the
company secretary within 21 days, or you could face a further fine of up to £2,500.
n Inventory Services
The inventory clerk will not move or lift heavy items. The inventory clerk is also not required
to test any gas or electrical appliances. If a clerk feels at any point that their personal health
or personal safety is in question then they will abandon any work being undertaken and return
to the property at a later date once the issues have been addressed. Should this result in
additional charges made by the inventory clerk these shall be borne by you.
n Housing Benefit Payments (if applicable)
Where the tenant is in receipt of Housing Benefit payments (or similar), you indemnify
Northfields against any requirement to refund Housing Benefit or equivalent to the council.
n Water Rates and Water Meter Charges
Further to the Flood and Water Management Act 2010, which came into force on 1st October
2011, you will remain liable for any outstanding water charges if the tenant vacates the property
and DOES NOT provide a UK forwarding address or does not settle the account in full at the
end of the tenancy. If Northfields are not acting as your management agent, you are advised to
request proof of payment in the form of a receipted final bill, or retain money from the deposit
for the purpose of settling any final accounts. Northfields are not accountable or responsible
for checking water meters or finalising water bills on behalf of tenants, whichever service we
provide for letting or managing the property.
n Courts and Tribunals
Applications for fair rent or appearances before the Rent Officer, Rent Assessment Committee
or any other court or tribunal is by special arrangement only and will be subject to an additional
charge of £72 inc VAT (£60 plus VAT), per hour or part thereof, per person in attendance,
plus expenses. The administration cost for Northfields to organise paperwork for solicitors or
arbitration is £72 inc VAT (£60 plus VAT) in addition to the legal costs.
n Instructions of Solicitors
You will be informed of any rent arrears or breaches of covenant brought to our attention. However,
if legal action is required you will be responsible for instructing your own solicitors and for all fees
involved.
n Renewals to the same tenant
We recognise that the point of renewal offers us a fantastic opportunity to review all aspects of
the tenancy. Not only is it the perfect time to increase the rent (subject to market conditions)
but also to discuss any necessary enhancement or refurbishment of the property in order to
maintain it and to maximise the rental yield.
Where we have not received written instructions from you 2 months prior to the end of a fixed
term we shall offer to your tenants a renewal based on the same terms (length and any break
clause) as the current term subject to a rent increase of 2%. Should you not wish us to offer
a fixed term renewal you must inform us in writing at least 2 months and 1 day prior to the
end of the current fixed term. We will continue to maintain the deposit registration or extend
any deposit replacement product and our staff are available to advise on the renewal of the
tenancy agreement.
Fees are due to Northfields at the agreed rate for any extending period (including fixed term
tenancies, periodic or rolling tenancies or any other type of tenancy) whilst the tenant, or
occupant introduced to you by Northfields, remains in the premises.
Our fee is due at the agreed percentage of the rent for the term of the extension or continuation
whether or not we are party to or undertake any negotiation on your behalf. Fees will be
taken monthly in line with the rent where rent is processed by Northfields or due upfront and
calculated at the agreed percentage of the rent for the continuation term agreed should other
rent processing provision be made.
18 V0121GENERAL INFORMATION
n Right to Rent in the UK – Documentation and Working Visa
As from 1st February 2016, under the Immigration Act 2014, it is the landlord’s responsibility
to ensure that all tenants have the right to rent in the UK by making and keeping a copy of
passports or acceptable ID cards for all tenants and evidence of their immigration status
(biometric residence permit). Northfields will undertake tenant checks to the best of our
ability but we cannot accept liability for any subsequent issues which arise either directly or
indirectly from our actions in this respect. Please note that the penalty for non-compliance is
up to £3,000 per Tenant.
n The Deregulation Act 2015
From 1st October 2015 a number of important changes came into effect for all new Assured
Shorthold Tenancies in England that started on or after 1 October 2015:
There are new restrictions on serving Section 21 Notices early and a new template Section 21
form to use (Form 6A). The Section 21 Notice cannot be served until 4 months of the tenancy
has passed. The new rules also remove the need for a landlord to specify that a tenancy must
end on the last day of a rental period; unless the tenancy started on a periodic basis without
any initial fixed term where a longer notice period may be required depending on how often
the tenant is required to pay rent (for example, if the tenant pays rent quarterly, they must be
given at least three months’ notice, or, if they have a periodic tenancy which is half yearly or
annual, they must be given at least 6 months’ notice (which is the maximum.))
Please note: In the event that a tenant has paid an amount of rent in advance and a Section 21
Notice requires them to leave during the period paid for, the tenant is entitled to a refund of
the rent paid for the days they are not occupying the property.
Landlords will not be able to serve a Section 21 Notice on tenancies that began on or after
1st October 2015 unless they have provided tenants with the following information:
nA Gas Safety Certificate covering all fixed and portable gas appliances provided by the
landlord for the tenants’ use.
nT he property’s Energy Performance Certificates (EPC); (except where a property is not
required to have an EPC – such as where the landlord is letting a room on a single AST in a
House in Multiple Occupation (HMO).)
nT he Department for Communities and Local Government “How to Rent – the checklist for
renting in England”. This can be provided in electronic format, or if the tenant requests
it, or does not have access to IT facilities, should be supplied in paper copy. Agents and
Landlords should supply the document itself as it is unlikely a link to where the document
can be found on the internet will be sufficient. This should be given at the start of a new
tenancy and the commencement of fixed term renewals.
The Act also restricts a Landlord’s ability to serve a section 21 Notice to recover possession of
their property if:
1) The tenant has made a written complaint to the landlord or agent about the condition of
their property or any common parts of the property (hallways, stairs, and gardens) which
tenants have the right to use.
2) The landlord or their agent has not provided an adequate written response within 14 days
3) If no adequate written response is received the tenant can complain to the relevant local
authority who could decide to serve a Relevant Notice in respect of the property or could carry
out emergency remedial action themselves using their powers under HHSRS - the Housing
Health and Safety Rating System.
Any failure to deal with complaints and repairs could become a serious and very expensive
issue because a poorly maintained property means landlords may not be able to regain
possession of their rental property for 6 months (i.e. from the date on which a local authority
serves an improvement notice).
V0121 19RENT AND LEGAL INSURANCE
n Rent and Legal Insurance Products
Every care will be taken to ensure that prospective tenants are fully referenced and you shall
be asked to review the reference reports before we proceed to issue tenancy agreements for
signing. By signing the tenancy agreement you are confirming that you are happy to proceed
based on the references received. For your peace of mind Homelet are able to provide insurance
for legal expenses and/or rental payments. We believe that it is best practice to have insurance
in place in case the tenant becomes unable to pay. Without insurance you may be required to
pay for solicitors to assist you in regaining possession of your property and you may wish to
consider whether you would be able to make any mortgage repayments should a tenant cease
making rental payments.
You can choose to buy insurance from any provider that you wish and you are not obliged to
take insurance.
nW
e can offer an ‘Interest In’ our Rent Guarantee and Legal Expenses Insurance Policy as part
of our service for the first 2 months. You wouldn’t have any rights under the policy, but if
your tenant does fall into arrears and we make a successful claim under the policy, any sums
recovered that are due will be passed to you. Homelet will write to you directly to confirm your
interest in this once a policy has been arranged if you opt for this service. Please see below
further details about what the Rent Guarantee and Legal Expenses Insurance Policy includes:
n The policy has an excess equivalent to two months of rent, i.e. the first and second
months’ rent are not covered.
n The policy will cover 85% of the rent for a maximum of six months, or until vacant
possession, whichever occurs first – e.g. from the third month of missed rent, up to and
including, the eighth month.
n 50% of the rent paid for up to 3 months after vacant possession has been obtained,
whilst new tenants are found, where there has been a claim for damage if the property
cannot be re-let.
n The policy will cover all aspects of the eviction up to a maximum of £50,000.
n Cover can be arranged for rents up to £2,500 pcm.
After the initial 2 month period the policy will continue and you shall be charged £30 per month
including any VAT or IPT payable.
Should wish the policy not to continue please contact your local branch and provide 1 months
notice in writing.
HomeLet is a trading name of Barbon Insurance Group Limited which is authorised and regulated by the Financial Services
Authority. Registered in England number 3135797. Registered office address: 4-9 Highview, High Street, Bordon, Hampshire,
GU35 0AX.
20 V0121GENERAL INFORMATION
n Energy Supplier and Utilities
We will advise the relevant GAS, ELECTRICITY and WATER suppliers of the transfer of service
responsibility into the Tenant’s name at the commencement of the tenancy without liability on
our part. Similarly at the end/termination of a tenancy we shall, unless otherwise requested,
advise the utility companies to transfer the relevant service back into the Landlord’s name. We
reserve the right to request that the outgoing tenant undertakes this action. As procedures vary
amongst suppliers, it is necessary for the ‘in-going’ name to contact the relevant company to
ensure continuation of supply. It must be noted that whilst our tenancy agreement provides that
Tenants should not remove or transfer an allocated telephone number of a let property to a new
address, occasionally this happens as a result of a change in service provider or at the request of
the Tenant. In the event the original allocated telephone number is ‘lost’ it is unlikely the number
will be available for re-transfer to the property. We therefore accept no responsibility for the
action of any Tenant or telecommunications supplier for the loss of any telephone number. In the
event a Landlord wishes to retain a ‘precious’ telephone number for future use the Landlord must
seek directly the advice of his/her service provider.
n The Homes (Fitness for Human habitation) Act 2018
This legislation came into force on 20 March 2019 and gives a tenant a right to go to court should
a landlord not adequatly maintain a property. More information can be found at:
https://www.gov.uk/govenment/publications/homes-fitness-for-human-habitation-act-2018
nF ees
The commission is due on the rental payment dates as specified in the tenancy agreement. If the
tenancy is renewed or extended beyond the initial fixed term agreed period, or if an option to
renew is exercised, our commission will continue to be charged at the management rate agreed
for the further agreed period or periods.
n The Tenant Fees Act 2019
This came into force on the 1st June 2019 and unless a fee is considered a ‘permitted payment’
under the Act, all fees to tenants are banned. Fees can no longer be charged to a tenant by an
agent or by a landlord directly. Historically tenants have been charged (where appropriate) for
Tenant Referencing, Tenancy Agreements, Change of Tenancy paperwork, Guarantor References,
Renewal Tenancy Agreements, Check Ins and Rent Reminder letters. These charges are no longer
legally permitted.
In accordance with the law we will no longer charge fees to tenants (unless deemed a permitted
payment.) Previously we have incorporated the many changes in legislation to include them
within the fees already charged to you – there were seven significant legislation changes in 2018
alone and we’ve ensured that all our clients are compliant as a matter of course at no additional
cost. We work hard to deliver the best service at the best possible price and as a company have
absorbed the majority of these costs to limit a Tenant Fee Levy to all tenancies charged at 1.2%
(1% plus VAT). By way of an example on a rent of £1,500 per calendar month an increase of £18
(inc. VAT). Please remember that our charges are tax deductible.
n Change of Sharer/Occupent
Should your tenant request a change of tenant whereby one person leaves, joins or ‘swaps’ and
you consent, we shall oversee the paperwork on your behalf at a cost to you of £300 incl VAT.
n Additional Keys and Ad Hoc Services
Should you require that we obtain copies of keys or perform other ad hoc services we shall retain
the right to pass on the cost of the item(s) plus an additional admistration charge of £20 (inc
VAT).
V0121 21THE SECURITY DEPOSIT
As part of our service, your tenant’s security deposit will be automatically protected by
the TDS (Tenancy Deposit Scheme) and you will be subject to a monthly charge of
£8 inc VAT. If we are not receiving rent monthly you will be charged an annual fee of £96 inc VAT
payable in advance which will not be refundable.
Tenancy Deposit Protection legislation is the LAW. Security deposits held for all new tenancies must
be lodged in a statutory scheme and Northfields will organise this on your behalf.
The landlord must give the tenant and any relevant person ‘prescribed information’ about the
deposit and comply with the initial requirements of an authorised scheme within the Statutory
Time Limit which we shall do for you.
We are a member of the TDS, which is a government-authorised tenancy deposit protection
scheme, administered by:
The Tenancy Deposit Scheme, PO Box 1255, Hemel Hempstead, Herts, HP1 9GN.
Telephone: 0300 037 1000.
Email deposits@tenancydepositscheme.com
www.tenancydepositscheme.com
If you do not want us to protect the deposit on your behalf, it will be your responsibility to protect
it as required by law. Please provide written confirmation of your chosen scheme registration
number, prior to approving references so that documentation can be correctly issued. A valid
notice seeking possession under s21 of the Housing Act 1988 cannot be served on a tenant
whose deposit is not protected correctly and within the required timescale.
What is included?
nN orthfields will protect the security deposit for the period of the Tenancy. As members of
The Dispute Service, scheme numbers G02161 and EW63861 we are legally allowed to hold
the tenants deposit on your behalf or lodge with the TVS PDS custodial scheme.
n The correct prescribed information will be given to the tenant in accordance with Housing
Act legislation within the tenancy agreement produced by Northfields.
n If you provide your own tenancy agreement we can insert the correct clauses to enable us
to hold the deposit at an additional cost of £120 inc VAT (£100 plus VAT).
n The tenant will sign to confirm acceptance of the correct information and this will be held
on file for the duration of the tenancy.
n At the end of the tenancy, the check-out report will be organised with an inventory clerk
and a copy will be forwarded to all parties for the deposit deductions to be negotiated.
If the property is under our management service, the deposit negotiations will be carried
out on your behalf, including obtaining quotations (if required) for any works necessary to
cover damage or dilapidations to the property and the dispute paperwork be organised
on your behalf.
n If there is a dispute over the relevant deductions you can use the Alternative Dispute
Resolution Service (ADR) provided by the scheme.
n You must notify whether you are intending on making any deductions to the tenant’s
deposit within 10 days of the check out inspection. If the property is fully managed, the
deposit deduction process will be organised on your behalf but for Letting and Rent
Collection properties it is your legal responsibility to obtain quotations speedily and to
notify your tenant accordingly.
22 V0121THE SECURITY DEPOSIT
Important information
nD
eposits must be registered with the Tenancy Deposit Scheme within 30 days from the date the
deposit was received and the deposit provider (tenant, guarantor etc.) must be provided with
the schemes prescribed information. It is, however, your responsibility to ensure that any changes
to the prescribed information are notified to Northfields or direct to your tenant throughout the
tenancy period.
n If the correct information is NOT given to your tenant and if the deposit is not registered with a
scheme within 30 days of receipt of the deposit then you will not be able to serve a Section 21
Notice on your tenant in order to re-gain possession of your property. In addition a tenant can take
court action against you for breach of contract and a judge has the liberty of awarding them up to
3 times the amount of the deposit for the property. Do not leave this to chance, let Northfields
take care of these legalities in full!
n At the time of accepting an offer from a tenant introduced by Northfields, if you do not confirm
your chosen Tenancy Deposit Scheme, it will be assumed that you wish to utilise our chosen
deposit scheme and you will be charged for this service. If you subsequently change your mind
after draft tenancies have been prepared you will be due an additional administration charge of
£120 inc VAT (£100 plus VAT) for revising the tenancy agreements to contain alternative deposit
clauses and for the transfer of the funds.
Types of tenancy exempt from legislation
At the present time this legislation does NOT apply to Non-Housing Act Tenancies, which are:
n Tenancies with an annual pure rent of over £100,000 or less than £1,000
n Tenancies with a resident landlord
n Tenancies where the property is a 2nd home and not the tenants main residence
n Company tenancies
Using your own scheme?
If you have chosen your own scheme and have provided us with the relevant paperwork to confirm
your registration, you must:
nN
otify Northfields of the clauses required in the Tenancy Agreement for your chosen scheme
nN
otify the tenant of the scheme you have chosen to use and provide the relevant Prescribed
Information for the scheme within 30 days of the commencement of the tenancy
nF
orward the deposit to the Deposit Protection Service or insure the deposit with MyDeposits
(whichever is applicable) within 30 days of the initial payment by the tenants of the deposit
If you fail to do any of the above points within the 30 day period you will be unable to serve a
Section 21 Notice upon your tenant in order to regain possession of your property and, in addition,
you may incur a hefty fine up to the value of 3 times the security deposit amount if prosecuted via
the courts.
Northfields shall be entitled to deduct from any deposit that may be paid by a tenant of the landlord
property any fees or other monies due and payable by the said tenant to the agent.
V0121 23You can also read
