| Detailed below are possible costs
which would be the responsibility of the Landlord. Some of the costs
will not be applicable and many are optional. We are assuming that
the property does not require any refurbishment or furnishing expenditure.
Please note that costs will vary from property to property.
i) Mortgage Consent to Let
Applicable to all who have a mortgage. (approx £150-£350).
ii) A License to Sub-underlet
If applicable (approx £150-£200).
iii) Telephone Installation
A tenant will insist on a working telephone. Line installation varies
from £80-£120.
iv ) Professional Cleaning
This can be expensive. Always get 2-3 quotes before instructing
cleaners. For an average two bed flat a light clean would start
from approx £100, but for an in-depth professional clean including
carpets, curtains, upholstery it could cost up to £400.
v) Garden/Swimming Pool
The cost of maintenance should be borne in mind.
vi) Key Cutting
At least one set for each occupant and one set for the managing
agent. Normal keys cost very little to cut, but security keys cost
more, a Banham key costs approximately £11.75 plus VAT to
cut.
vii) Tenancy Agreement/Legal Fees
These vary between agents from £50-£300 and can be considerably
more if using a solicitor.
viii) Agents Fees
Long Lets: Usually between 10-20% + VAT of the
rental for the introduction of a tenant and management of the property
for the duration of the tenancy.
Short Lets: Usually 20% +VAT
of the rental for the introduction of the tenant for the duration
of the tenancy and any renewal or extension thereof.
ix) Introduction Only
To find and reference a tenant. The fee will be 75%
of one month’s achieved rent.
x) Inventory
To have an inventory made will cost £100-£300
depending on property size. The cost for checking the tenant in
against the inventory at the beginning of the tenancy and for checking
them out at the end is usually about £80-£150 each time.
It is usual for the cost of check in and check out to be split between
the 2 parties except in instances where the tenant has their own
inventory clerk.
xi) Safety Checks
It is necessary to have a gas safety record from a CORGI registered
fitter. This costs approximately £90 including VAT and is
an annual requirement whilst the property is tenanted.
xii) PA Test
The Portable Appliance Test costs approx. £80-£100.
i) Council Tax
Only 50% is payable by the landlord while the property is vacant
for up to 6 months, but nothing is payable for the first 6 months
if the property is unfurnished. Charges are banded according to
the value of the property. Council Tax is inclusive of the rent
for Short Lets. Please note that if Holden Heal are undertaking the
management we will advise.
ii) Insurance
The landlord is responsible for insuring the contents listed on
the inventory. Premiums vary according to the area. Premiums for
£15,000 cover will range from approximately £200 in
low risk areas to £500 in higher risk areas. Quotes are available
for both upon request.
iii) Service Charge
This remains the landlords responsibility and usually includes;
building insurance, maintenance and care of common parts, contribution
to a sinking fund and central heating and hot water if on a communal
system. Levels will vary depending on the facilities available,
such as a porter etc.
iv) Maintenance and Repairs
Charges will be variable.
v) Income Tax on Rental Profit
i) Accountants Fees
An accountant can ensure you do not pay more income tax than is
necessary. Fees for a tax service through a letting agent are from
approximately £250 but will be more if appointing a firm of
accountants directly.
ii) Solicitor/Legal Fees
In the event that something goes wrong during the tenancy the landlord
should be aware of the risk of legal bills.
iii) Management of Property while empty
For absentee landlords, agents will normallyprovide a specialised
service.
iv) House Sitters
Absentee landlords may need to pay for a house sitter to attend
the property for the purpose of deliveries, phone installation etc
(charged by the hour).
i) Legal Protection
It is possible to insure against legal and court fees in the event
that the instruction of solicitors becomes necessary.
ii) Rent Protection
Insuring against non payment of rent and rent loss may be arranged.
Please note that the Cost Protection Scheme is not available for
Short Lets.
TOP > |
