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Landlords > Managed Services
Landlord Registration
In terms of the legislation relating to The Antisocial Behaviour etc (Scotland) Act 2005, Part 8 landlords are required to be registered with the relevant local authority by no later than 31st March 2006. The Scottish Executive has now agreed a national fee of £55 to register as a landlord for a 3 year period. Thereafter to register individual properties will cost £11 per owner for each property. Online registrations will receive a discount of 10%. For further information visit www.landlordregistrationscotland.gov.uk or email landlordregistration@aberdeencity.gov.uk
Listing your property
Call Bruce & Partners to arrange a no obligation appointment for advice on leasing your property which will include a leasing valuation, marketing appraisal and a quotation of the fees. This will be sent to you in the form of a Proceed to Lease document, when signed becomes the contract.
Once you decide to list your property for lease with Bruce & Partners a second appointment will be arranged to collate details, including measurements to prepare the schedule of particulars. A professional photographer will contact you to make arrangements to take photographs for the Schedule.
Once approved, the property particulars will be circulated to our mailing bank and included on our web site.
Marketing your property
In addition to our web site, www.bruce-and-partners.co.uk, which can also be accessed through other major web sites specialising in the leasing market including Rightmove, City Lets, Prime Location, to name but a few. From time to time adverts will also appear in the local press including the Press & Journal, Evening Express & Ellon Times.
We also keep a register of relocation agents and potential tenants who are informed of your property by regular telephone contact, direct mailing and email alerts via the website. All of this is backed up by an accompanied viewing service.
Our Fees
The managed service includes an initial letting fee and a monthly management charge. There are no ‘up front’ charges when you list your property with Bruce & Partners. The letting fee is deducted from the first months rent together with one month’s management fee. Thereafter the management fee will be chargeable monthly. The initial letting fee will be charged at the beginning of each new tenancy. If required an annual statement can be provided at a small charge.
Reserving your property
Once Bruce and Partners have secured a reservation on your property, your potential tenant is required to pay £200 (non returnable reservation fee towards first months rent) plus a further £25 for each person named on the lease who will require to be credit checked (if a Guarantor is required, this is an extra £15). Once a satisfactory credit rating has been received, we collect one month’s rent in advance (less £200 reservation fee already paid) plus the deposit (normally equivalent to one months rent) against breakages, damages, dilapidations and other losses. The deposit is refundable, subject to a satisfactory final inspection carried out by an independent valuation company, when the tenants have vacated.
Tenant credit checks
All potential tenants must complete a reservation form detailing their personal and financial details. This information is then sent to a reputable referencing agency, chosen by Bruce and Partners, who will provide an independent financial assessment of the tenant. The current charge for obtaining a tenant credit check is £25 for each person named on the lease agreement or £40 for a Company credit check. If a guarantor is required a charge of £15 will be levied.
Negotiation and preparation of lease
Bruce & Partners' standard lease agreement has been developed in order to clarify the terms by which the property will be leased. Bruce & Partners will sign the agreement as the landlord’s agent.
The lease is prepared as a Short Assured Tenancy, with the minimum lease period being 6 months.
Inventory
Prior to the tenant taking occupation of the property, a full inventory is prepared by an independent company and this includes a record of the condition of the decoration, repair and furnishing of the property. The tenant is provided with a copy of the inventory and is required to check or amend as necessary, sign and return to Bruce and Partners within 7 days. At the end of the let the inventory is checked to ensure that there is no damage or loss (fair wear and tear excepted) either to the contents or to the property itself. If there is damage or loss (fair wear and tear excepted) then the cost of any repair or replacement is charged to the tenant.
Collecting rent
A standing order will be set up between Bruce and Partners and the tenant. When the let begins Bruce & Partners will deduct their letting fee, monthly management charge and charge for compiling an annual statement of rent (where applicable) and pay the remainder to the landlord. Each month thereafter, the management fee will be deducted. The landlord will receive a monthly statement of account.
Property inspections
Bruce and Partners will carry out routine inspections and request the tenant to attend. A detailed report will be provided to the landlord.
Property maintenance
The landlord is responsible for all maintenance and repairs, except where repairs are directly attributable to the tenant whether due to accidental or negligent damage. Many of these repairs can be minor in which case, Bruce & Partners will instruct work as necessary and any costs will be deducted from the received rent.
For any major repairs, quotes will be obtained and the monies requested in advance. Obtaining the landlords consent for minor repairs can be an administrative burden, which can lead to delay and a deterioration in both the relationship with the tenant and the landlord. Therefore by instructing Bruce & Partners to manage the let a landlord will also be authorising Bruce & Partners to instruct repairs of up to £200 without having to first obtain the landlord’s consent.
Utilities
In addition to the rent the tenant will be responsible for utility bills when they fall due. These bills include gas, oil, electricity, telephone and water consumed during the period of let. The tenant will also be responsible for the payment of the council tax bill, leviable as a result of his occupation of the property.
Insurance
The insurance of the building and any furniture, fittings or furnishings which belong to the landlord will remain the landlord’s responsibility. The tenant is responsible for insuring their own belongings in the property and it is always advised for the tenant to insure the contents. The terms of the landlord’s insurance policy may be changed as a result of the property being let or left unoccupied for a period of time. You are advised to check the details of your insurance policy carefully or to ensure the insurance company is made aware of the circumstances.
Tax
As a general guide, tax is charged on any profit made from letting, with profit being the income less any allowable expenditure, such as the building and contents insurance premium, maintenance costs, repairs and letting fees. Loan interest relief and capital allowances may also be available.
If the landlord is resident abroad while the property is let, special arrangements exist with the Inland Revenue. Landlords (both husband and wife if applicable) should complete a form NRL1 and submit it to Bruce & Partners for onward submission to the Inland Revenue. This is to allow the rent to be paid gross rather than net of tax. Should the required permission not be received from the Inland Revenue, we are required by law to retain an amount equal to the basic rate of tax applicable from the net monthly rental and pay this direct to the Inland Revenue on a quarterly basis. Should you need a Form NRL1 we will provide you with one.
All landlords should also be aware that Bruce & Partners is obliged to inform the Inland Revenue each year of all income collected on behalf of landlords whether or not they are abroad.
Bruce & Partners will prepare, for a small fee, an annual statement of rent for managed properties for the tax year 6th April to 5th April and issue May or June each year.
Safety regulations
All landlords are responsible for and required to comply with the current safety regulations, details of which can be provided by our staff. Bruce and Partners can arrange for all relevant checks to be carried out if required.
Gas
Under the Gas Safety Regulations 1994 (Installation and Use) all landlords have a legal obligation to ensure all the gas appliances (boilers, cookers, fires etc.) have passed a safety test every 12 months. Bruce & Partners can organise this for landlords if required.
If there is a service charge associated with the property ie Factoring, the landlord maintains the responsibility for these accounts.
Electricity
It is the landlords responsibility to ensure that all moveable electrical items meet with the Portable Electrical Appliances Safety Test (PAT). A regular 5 year check of electrical wiring circuits and mains board should also be carried out in terms of the Electrical Equipement (Safety) Regulations 1994. In each case, an electrical safety report should be obtained.
Smoke Detectors
Smoke detectors (BS5839) installed after 3 September 2007 must be hardwired. Should your battery operated smoke detector require to be replaced during a tenancy, Bruce & Partners will instruct contractors to replace this (if taking the managed option) by a mains operated smoke detector, in keeping with legislation.
Repairing Standards
LegislationFrom 3 September 2007, private landlords have a duty to ensure that the houses they rent to tenants meet the new Repairing Standard' which is set out in Section 13(1) of the Housing (Scotland) Act 2006 (the 2006 Act). The landlord should ensure that the house meets the Repairing Standard at the start of the tenancy. If a tenant believes that the landlord has failed to meet the Repairing Standards at all times during the tenancy, they have the right to apply to the Private Rented Housing Panel (PRHP).
To find out more about your responsibilities under the 2006 Act, you can download an advice pack and other leaflets from www.prhpscotland.gov.uk.
Energy Performance Certificates
It is a mandatory requirement that all properties sold or rented from 4 January 2009 require an Energy Performance Certificate (EPC). As part of the Single Survey in Scotland all properties marketed on or after 1st December 2008 will require to have an EPC when the property is offered to the market. A copy of the certificate requires to be submitted to Bruce and Partners prior to listing. This certificate must be displayed within the property and a copy issued to the tenant.
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