LANDLORD FAQS
1. How much will it cost me to let my property?
The costs involved in letting your property consist of:
Commission
A commission fee is payable when a tenant is introduced and enters into an agreement to let the property. This is charged as a percentage of the agreed annual rental price + VAT. Prices vary depending on what service level you choose but these are detailed in our ‘Services we Offer’ section of our website.
Contract & Administration Fee
A comprehensive, legally binding tenancy agreement is crucial. We charge £180.00 + VAT (£216.00 inc VAT) for the drawing up of this document.
Referencing Fee
To carefully check references of every person over the age of 18 is vital for your security and to ensure only the highest calibre tenant moves in to your property. Referencing is charged at £45.00 + VAT (£54.00 inc VAT) per applicant, which includes Guarantors. This includes checking the Tenant has the legal ‘Right to Rent’ in the UK, employment & previous landlords are also verified at this time. More basic credit checks, which simply show up any bad credit that your tenant may have is charged at £30.00 + VAT (£36.00 inc VAT) per applicant.
Rent Guarantee Policy
Once your tenant has been approved for referencing, you will be given the opportunity to purchase a 12 month rent guarantee insurance policy, which not only covers rental arrears, but also eviction and legal costs cover. For a 12 month rent protection policy with nil excess, we can provide this reassurance for £185.00 + VAT (£222.00 inc VAT) for 12 months. For a cheaper option, we can provide a 12 month rent protection policy with a one month’s rental excess for £150.00 + VAT (£180.00 inc VAT).
Inventory and check-in/out report
Prior to a tenancy commencing, it is imperative that an independent inventory and check-in is carried out and again that this is checked at the end of the tenancy. Prices vary depending on the size of the property and whether it is furnished or unfurnished. Please ask us for prices.
Deposit Holding
To lodge the deposit in the DPS Insured Scheme, of which we are members, to supply to the tenant the relevant Prescribed Information and documentation and adhere to their rules and regulations, we will charge £30.00 + VAT (£36.00 inc VAT) per tenancy.
Energy Performance Certificate & Other Costs
There are various other checks and costs that may apply prior to your tenants moving in. Latham Smith will ensure that all legislation that applies to your property is met. Examples include; an Energy Performance Certificate is in place, a gas inspection has been carried out and all electrical items in your property are safe for purpose.
We charge £100.00 + VAT (£120.00 inc VAT) to arrange an Energy Performance Certificate on your behalf.
We charge £100.00 + VAT (£120.00 inc VAT) to arrange a Landlord gas safety certificate on your behalf.
We charge £225.00 + VAT (£270.00 inc VAT) to arrange a 5 year electrical condition report. Please note any remedial works required will be quoted for after the initial checks have been made.
We often have special offers available on these, so do ask if we have current offers.
2. Are there any additional marketing costs that I will be charged?
All our marketing expenses are included within our commission fee so there are no additional costs for you to pay.
3. Who will conduct viewings on my property and when will they occur?
A representative from Latham Smith will accompany all viewings during our opening hours.
4. Do I need to be present for viewings?
As we are accompanying all viewings we will require access codes and keys for your property. It is worth noting that tenants often feel more relaxed when the owner is not present.
5. What is an EPC and how long will it be valid for?
An EPC (Energy Performance Certificate) measures the energy efficiency of a property using a scale of A-G and is valid for 10 years from date of issue. It is a legal requirement for landlords to have a valid EPC before their property is let and the energy rating must be an ‘E’ or above.
6. How much will it cost to have my property managed?
Latham Smith can manage your property for you and our fee will be charged as a percentage of the rental price + VAT and is payable upon receipt of the rent on a monthly basis. Please refer to our ‘Services we Offer’ section as all costs are detailed there.
7. How much is the tenant’s deposit and what happens to it?
Latham Smith take five weeks’ rent as a security deposit and this is payable upon the signing of the Tenancy Agreement. The deposit should then be registered with a tenancy deposit protection scheme within 30 days. Our fee for lodging the deposit securely in the DPS insured scheme, of which we are members is £30.00 + VAT (£36.00 inc VAT) per tenancy. This fee includes the taking in of the deposit, lodging in a secure scheme and assistance at the end pf the tenancy with the arranging of the inventory check out inspection.
In the majority of tenancies, Latham Smith hold the deposit as stakeholder and register this with the Deposit Protection Insured Scheme, resulting in a faster and more efficient deposit release process at the end of the tenancy.
8. How long does it take to receive my rent once paid by the tenant?
You should receive your rent by standing order on the rent due date each month as detailed in your Tenancy Agreement if you are managing the property yourself. If Latham Smith are providing Rent Collection or Full management for you, we will collect the rent on the due date and forward you the balance by bank transfer within 5 working days. The due date is typically, although not always, the date on which the tenant moved in. Any delays in rent payments will be advised to you along with the reason for the delay.
9. What other costs could I be accountable for during my tenancy?
Should the tenancy renew for a further term, our reduced fee of 6% + VAT (7.2% inc VAT) will apply until the tenancy ends. A reduced Contract & Administration fee will also apply at the renewal stage of £100.00 + VAT (£120.00 inc VAT). This does not include the renewal of the rent guarantee policy, this is an optional extra and if required renewal fees will apply.
Should you withdraw from an agreed offer, you will be required to cover any costs for works already carried out, including referencing, preparation of draft tenancy agreements and any other ad-hoc costs.
Should you require a member of staff from Latham Smith Ltd to attend your property, other than in the course of our general management duties, we will charge £45.00 + VAT (£54.00 inc VAT), per hour or part thereof.
Should a Section 8 Notice be required to be sent to a tenant, a charge of £250.00 + VAT (£300.00 inc VAT) will apply.
For our Rent Collection & Full Management services, we email all statements to landlords on a monthly basis. If hard copies are required, we charge £5.00 + VAT (£6 inc VAT) per statement posted.
Courts & Tribunal costs whereby Latham Smith carry out works, or are required in court, costs will be charged at £60.00 + VAT (£72.00 inc VAT) per hour or part thereof for works required.
If you sell the property with the tenant Latham Smith introduced into the property, we will charge £150.00 + VAT (£180.00 inc VAT) to prepare and serve all the relevant documentation on the tenant to notify of the new owner / landlord.
If you are landlord who lives abroad and you do not have NRL1 approval from the Inland Revenue, we will charge £300.00 + VAT (£360.00 inc VAT) per annum for the work involved in deducting tax from your rent and carrying out the administration of sending the tax to the revenue and providing you with all the correct documentation required.
We would be more than happy to discuss any aspect of our fee structure. We want to be open and transparent about all aspects of our service.
10. Who does Latham Smith Ltd have their Re-dress Scheme with?
We are proud members of ARLA Propertymark and The Property Ombudsman Scheme.
11. Who does Latham Smith Ltd have Client money protection with?
We are licensed members of ARLA Propertymark and through them, we are part of the ARLA Propertymark Client Money Protection scheme, so all funds collected from tenants and landlords is as secure as it can possibly be.
Latham Smith – Propertymark Client Money Protection certificate
12. Who do I speak to if I have problems with my tenancy?
Please contact us at Latham Smith 01923 447192 or 01923 447195 or email your enquiry to lettings@lathamsmith.co.uk
