FEES AND CHARGES

CHARGES AND INFORMATION FOR TENANTS

UNLESS OTHERWISE STATED THE FOLLOWING MANDATORY CHARGES APPLY

  • Fuji London Property requires an administration charge of £180 including VAT (£150 + VAT) to cover the cost of preliminary paperwork and the preparation of your tenancy agreement. This is charged per property and not per person
  • Fuji London Property also requires a payment from each tenant named on the tenancy agreement to cover the cost of referencing. Referencing is carried out by an independent credit referencing agency and costs £60 including VAT (£50 + VAT) per person. This fee will not be refunded once the referencing process has commenced
  • The tenant is normally responsible for the payment of the inventory check-out at the end of the tenancy (the Landlord pays for the preparation of the Inventory and Schedule of Condition at the commencement of the tenancy). This fee is charged by the Inventory clerk and depends on the size of the property and when the tenancy eventually ends. Typically the moving out check for a 2-bedroom furnished flat may be expected to cost in the region of £150 to £180.
  • Renewals – in the event that the tenancy is renewed or extended £60 including VAT (£50 + VAT) will be payable by the Tenant to cover the cost of Fuji London Property drawing up a new tenancy agreement or Memorandum of Renewal.

INTEGRITY AND PROFESSIONALISM

Fuji London Property is a member of the following codes of practice. These memberships provide landlords and tenants with an assurance that they will received the highest levels of customer service:

As a member of the National Approved Letting Scheme (Licence No. A4587) Fuji London Property has demonstrated that it has met defined letting and/or management standards, offers independent redress and holds Professional Indemnity Insurance as well as belonging to a Client Money Protection Scheme*:

Further information on Client Money Protection can be obtained by contacting NALS on 01242 581712 or e-mail: info@nalscheme.co.uk

The following terms and conditions apply to your application to rent a property through Fuji London Property

HOLDING DEPOSIT – PLEASE NOTE:

HOLDING DEPOSIT – PLEASE NOTE: A holding deposit is normally payable upon your request to rent a property. Upon receipt of the holding deposit, the parties will enter into an agreement to grant a tenancy on the terms discussed. This will effectively reserve the property for you to occupy on the agreed date, and stop all other viewings, with the tenancy proceeding subject to the landlord receiving satisfactory replies to credit and reference enquiries. Once such satisfactory replies have been received, the parties will enter into a formal tenancy agreement. If the Landlord decides not to let the property to the prospective Tenant because the Landlord decides the pre-tenancy checks are unsatisfactory (or any other reason), even though the Tenant has been truthful and not mis-led the Landlord or Agent, the referencing cost* of £60 inc VAT per tenant will be retained and the remainder returned to you. If you simply change your mind, or for any reason decide not to proceed with the tenancy agreement, the Fee of Intent will be retained in full to compensate the landlord for any lost rent.

* referencing costs will only be deducted if the referencing procedure has actually commenced

SIGNING CONTRACTS

The letting contract or agreement must be signed by all tenants and, until this has taken place, no contractual agreement, offer or obligation is deemed to exist.

REFERENCES

All tenants will be expected to provide references which are satisfactory to the landlord before any tenancy agreement can be created. A referencing fee, to cover reasonable administrative costs, will be charged – see above in the green box. Our usual practice is to use a referencing agency, who will conduct credit checks, and contact your employer(s) and landlord(s) covering a period of 3 years.

If you require a reference from Fuji London Property, at any time during or after your tenancy, there will be a charge of £30 (inc. VAT) and funds must be received and cleared before a reference can be prepared.

INVENTORY AND SCHEDULE OF CONDITION

You should check carefully the condition of the property and its contents when you move in with respect to the inventory. The inventory is an important record which is used to assess any damage or dilapidations during the tenancy – which may lead to deductions from the deposit being made at the end of the tenancy. If you find anything that is not in good order, then we ask you to report it to us within SEVEN days of moving-in so that the problem can be put right or marked on the inventory. You are deemed to have accepted the content of the inventory report unless you notify us in writing within these first 7 days. The property is let as seen at the time of viewing; and requests for extra furniture, appliances or redecoration will not normally be considered after the tenancy has been entered into. The property should be in clean condition, free from dust and damage, windows clean etc.

METHOD OF PAYMENT

Before the date of occupation the balance (one month’s rent and remainder deposit) is to be paid in cleared fund into our bank account by BACS (Banks Automated Clearing System) transfer. WE WILL NOT ACCEPT PERSONAL CHEQUES OR CASH except by prior arrangement. Any cash paid into our account incurs substantial bank charges, currently £0.67 per £100.00 or part of £100.00 (as of May 2015), which we will expect you to reimburse us for.
Where the landlord has instructed Fuji London Property as agent to collect the rent each month, we will appoint a lead tenant and a standing order facility will be set up for the total amount of rental on that property. It is important that you furnish us with your bank details on or before the occupation date. Fuji London Property regret that we do not normally accept personal cheques or cash in payment for rent. Delayed rent payment causes us considerable extra administration and further delays in our payments to the landlord. A reasonable administrative charge (£24 incl VAT) will be made if rent is not received by the due date.

TENANCY DEPOSIT

A tenancy deposit is held by the Deposit Protection Service* www.depositprotection.com against dilapidations to the property or its contents, loss of rent or other unexpected costs. Details of the scheme and the dispute resolution provisions will be issued within 14 days of receipt of the deposit. The tenancy deposit is usually equivalent to six weeks rent and is returnable at the expiration of the tenancy, subject to a final inspection and full inventory check. If any necessary cleaning, repairs or replacements are required following the tenancy, then we will first obtain your agreement for the total amount to be deducted from the deposit, and then inform the Deposit Protection Service who will confirm this with you before releasing any funds. The Deposit Protection Service will issue you with a 5 digit Repayment ID once the deposit has been protected. You should retain this number safely, as you will need it at the end of the tenancy in order to claim back any deposit owing to you.

PLEASE NOTE THAT DEPOSIT PROTECTION APPLIES TO ASSURED SHORTHOLD TENANCIES ONLY. Deposits taken in respect of other tenancies (such as company lets) will be kept in a segregated client account and cannot be protected by a Deposit Scheme, as the Housing Act 2004 only relates to ASTs. The deposit schemes are only able to resolve disputes in Assured Shorthold Tenancies.
* The Deposit Protection Service (DPS) is a custodial scheme which physically holds your deposit. On occasion (particularly tenancies by sharers) we may instead use My Deposits (also known as Tenancy Deposit Solutions Limited, or TDSL) which is an insurance scheme, and keep the deposit in our client account.

INSURANCE

As tenant(s), you will be responsible for the safe-keeping of the property and its contents and unless otherwise advised, and you will be responsible for insuring and the safekeeping of your own valuables and effects. (The Landlord will only insure the building and his own contents)

TERMINATING YOUR TENANCY EARLY

Should you wish to terminate your tenancy prior to the first date allowed under the terms of your tenancy agreement, and the Landlord is in agreement with you, you will be responsible for paying the Landlord’s commission to Fuji London Property up to the point of any break clause exercisable by yourself. Any such funds must be remitted to Fuji London Property before the necessary Deed of Surrender can be prepared.

In the event that you wish to replace yourself, or another member named on your tenancy agreement, partway through a tenancy Fuji London Property will charge £180 (incl VAT) to cover the administration involve in doing so. The Landlord’s consent must also be obtained and the replacement tenant must be satisfactorily referenced.

TAXATION

If you pay rent directly to your landlord either from the start of, or at any time during your tenancy and your landlord resides overseas you should seek professional advice about the implications of the Non-Resident Landlord’s Scheme. As a starting point, further information can be obtained from: https://www.gov.uk/tax-uk-income-live-abroad/rent

INFORMATION FOR LANDLORDS ON LETTING TERMS AND CONDITIONS OF BUSINESS, FEES AND EXPENSES

UNLESS OTHERWISE STATED THE FOLLOWING MANDATORY CHARGES APPLY

Summary of charges
Letting Fee: 12% inc VAT (10% + VAT) of gross rent
Letting & Management Fee: 18% inc VAT (15% + VAT) of gross rent
Administration Fee for preparation of new tenancy agreement: £180 (£150 + VAT)
Deposit Administration Fee: £30 inc VAT (£25 + VAT)

INTEGRITY AND PROFESSIONALISM

Fuji London Property is a member of the following codes of practice. These memberships provide landlords and tenants with an assurance that they will received the highest levels of customer service:

As a member of the National Approved Letting Scheme (Licence No. A4587) Fuji London Property has demonstrated that it has met defined letting and/or management standards, offers independent redress and holds Professional Indemnity Insurance as well as belonging to a Client Money Protection Scheme*:

Further information on Client Money Protection can be obtained by contacting NALS on 01242 581712 or e-mail: info@nalscheme.co.uk

1. Letting Fee (initial term of 6 months or longer)

  • 10% plus VAT (12% including VAT) of gross annual rental.
  • 10 % plus VAT (12% including VAT) of gross annual rental for the second year and for subsequent years.
  • The fees are payable even if you dispense with our service during the Tenancy
  • A minimum charge of £350 plus VAT, if the amount of fee is less than £350.
  • We will deduct our fees by instalment from the first and second month’s rent from commencement of the Tenancy or renewal of the Tenancy.

2. Letting Service

  • Arranging appointments to view.
  • Introduction of tenants.
  • Obtaining references upon your request.
  • Negotiating the Terms of Tenancy Agreement.
  • Drawing up a Tenancy agreement (costs shared with tenant).
  • Arranging the transfer of utilities to service companies (gas, electricity, telephone)
  • Collection and statement of rent
  • Negotiating for the renewal of Tenancy.

3. Full Management Fee

  • 15 % plus VAT (18% inc VAT) of gross annual rental.
  • 15 % plus VAT (18% inc VAT) of gross annual rental for the second year and for subsequent years.
  • Our Full Management Fee structure is based on 10 % (12% inc VAT) letting fee plus 5 % (6% inc VAT) management fee. We will charge a minimum fee of £600 plus VAT per year, if 5 % management fee is less than £600.
  • We will deduct our fees by instalment from the first and second month’s rent from commencement of the Tenancy or renewal of the tenancy.

4. Full Management Service

  • All the letting service as above.
  • Paying charges, expenses, bills in respect of the Property stated in the Tenancy Agreement.
  • Routine day-to-day management of the Property.
  • Arranging repairs up to £300 at our discretion. In the event of an emergency, we reserve the right to authorise repairs in excess of this amount.
  • We will retain a balance of £300 as reserve for paying bills.
  • We do not pay any interest on funds held to your account.
  • Inspection of the Property on request.

5. Commission Charges

  • We will be entitled to the agreed commission if we let your property whether you instructed us verbally or in writing.
  • Our fees continue to be payable at the same rate for any period which the Property is let including any extension of the initial tenancy whether or not negotiated by us.
  • We shall retain fees from monies received by virtue of this contract.
  • We will refund our fees on a pro-rata basis provided that the Tenant operates a break-clause in accordance with the Tenancy Agreement and all our fees have been paid in full within 30 days of their due date.
  • If the Tenant or occupier introduced by us purchases the property during the term of the tenancy or within one year of the termination, we shall charge the Landlord (vendor) in respect of the introduction a commission of 2 % plus VAT of the final purchase price payable on completion.
  • Withdrawal from Agreed offer
    You agree to pay a charge of £350 plus VAT to meet the cost of the expenses incurred by us in the event of you withdrawing from the agreement in finalising the Tenancy Agreement.

7. Additional Worke

  • Non routine day to day management and major work: 10 % plus VAT will be charged if the works cost in excess of £1,000.
  • Insurance claims: 10 % plus VAT of the claim value subject to a minimum charge of £50 plus VAT.
  • Any request to carry out work on Non-Management properties: 10 % plus VAT of the total cost of the work or items purchased subject to a minimum charge of £50 plus VAT.
  • Management service between lettings: (Management Service does not apply during periods when the Property is un-let.) Minimum charge £25 plus VAT per week.

8. Other items and costs

  • Making of Tenancy Agreement: £150 plus VAT (£180 inc VAT) is charged.
  • When a Tenancy is extended, £50 plus VAT (£60 inc VAT) is charged.
  • Three typewritten copies of Inventory List must be supplied by the Landlord with a comprehensive listing, full description and its condition of items, and a Schedule of Conditions with a description of the general of condition of items such as decoration, flooring, lighting, glazing etc. If you are not able to supply these, you must instruct an Inventory Clerk to create them at your cost. (If you make your own list it may be very difficult to claim for any damage or dilapidation from the Tenant)
  • Check In – We shall instruct a professional inventory clerk to carry out an inventory check-in at the commencement of the Tenancy. The Landlord shall pay the cost of the check-in.
  • Check Out – We shall instruct a professional inventory clerk to carry out the check-out at the expiration of the Tenancy. The Tenant shall pay the cost of the check-out
  • Deposit – Where the Property is let to a company (on a Company Let), Fuji London Property Ltd will hold a deposit against any damages or dilapidation caused by the Tenant. Where the Property is let on an Assured Shorthold Tenancy (AST), the Housing Act 2004 requires that the deposit be placed with the custodial scheme (Deposit Protection Service) or protected through one of two accredited insurance backed schemes (My Deposits or The Dispute Service). Fuji London Property’s administration fee for registering the deposit and ensuring compliance with legislation is £30 inc VAT. For most tenancies the deposit will be placed with the Deposit Protection Service (DPS), a custodial scheme, and their details can be found at www.depositprotection.com. We are also registered with Tenancy Deposit Solutions Limited (trading as mydeposits.co.uk) and full details can be found at www.mydeposits.co.uk.

9. General Remarks

  • You may give no less than three months prior written notice to terminate our appointment to manage a Property.
  • We shall not be liable for any rent or non-payment or any other liabilities incurred by the Tenant and occupier or for any outgoings payable on your behalf.
  • We shall not be liable for any deficiency, loss or damage to the Property, its fixtures and fittings and contents whether included in the inventory, nor for the negligence of our servants or agents in relation to the Property.
  • We will not be liable for the management, protection or security of any Property before it is let or at the termination of a tenancy or if un-let between tenancies.
  • You authorise Fuji London Property to pay all bills provided that we accept no liability for the adequacy of any insurance cover or for the verification of any bills, service charges, maintenance charges or the works carried out.
  • We may instruct subagents to enable us to gain access to a wider market. Unless we are requested in writing by the Landlord not to instruct sub-agents then this will form part of our normal practice.

10. Obtaining permissions to Let

  • If the property is subject to a mortgage,
    • Permission must be obtained from the mortgagor to let the Property.
  • If the Property is leasehold,
    • Any intention of letting must be permitted by the terms of the Landlord’s Head Lease.
    • Any tenancy must be for a period expiring prior to the termination of your Head lease.
    • The written permission of your Head Leaseholder if required must be obtained for sub-letting.

11. Legal Obligations

  • The Furniture & Furnishings (Fire)(Safety) Regulations 1988 and the Fire & Furnishings (Fire)(Safety)(Amendments)(Regulations 1993)
    The Consumer Protection Act 1987 requires that all upholstery and upholstered furnishings, loose fittings, permanent or loose covers supplied in a property being rented from 1st March 1993, must meet the Fire Resistance Requirements. Furniture manufactured before 1st January 1950 ( antique or period furniture is exempt).
  • The Health & Safety at Work Act 1974 section 36 (1), Gas Safety (Installation and use) Regulations 1994 & 1996 and Electrical Equipment (Safety) Regulations 1994
    Under the above Act we have a liability to make sure that gas and electrical appliances in rented properties are checked annually by a registered installer/engineer and that accurate records of work carried out on all appliances are kept. As an agent we have a duty to inform you of these requirements. It is your responsibility that such records are available for inspection by us and the Tenant at any time.
  • Landlord & Tenant Act 1985
    We as Managing Agents have permission to maintain the Property as stated in the Tenancy Agreement subject to the provisions of Section 11 & 116 of the Housing Act 1988 in relation to your obligations to keep in repair the structure and exterior of the dwelling house including drains, gutters and external pipes, and to keep in repair and proper working order the installations for the supply of water, gas, electricity and sanitation including basins, sinks, baths and sanitary conveniences also the installations for space heating and heating of water.
  • Landlord and Tenant Act 1987
    Your full name and address should be included on all rent demands. If your address is outside England and Wales then we must provide the Tenant with an address within England and Wales to which Notices may be served upon you.

12. Taxation of Non-Resident Landlords

Income from letting is subject to UK Income Tax, even if the Landlord is resident overseas or a company registered overseas. The Taxes Act 1988 S42A(1) empowers the Inland Revenue to make regulations for the taxation of non-residents in respect of property Income. These regulations are detailed in The Taxation of Income from Land (Non- Residents) Regulations 1995

  • If we are not in possession of an Approval then in these circumstances we are obliged by the Inland Revenue to deduct the basic rate of tax from the rent net of allowable expenses before it is remitted to you.
  • We can be liable for tax on your letting income by the Inland Revenue if you are resident overseas.
  • You are responsible for notifying the Inland Revenue of the commencement of any Tenancy and any changes in personal circumstances which may affect your tax liability.
  • You are advised to appoint an accountant to deal with your tax affairs.

Check list of service provided to Landlord

Description Letting only Letting& Management
Marketing Appraisal
Photographs & bespoke marketing
Advertising on property portals & website
Accompanied viewings & feedback
Handling of negotiations
Arranging tenant references
Drawing up the tenancy agreement
Arranging a professional inventory & check-in
Registering the deposit with a deposit scheme
Handing over keys to the tenant
Rent collection
Chasing rent arrears
Sole contact for tenant enquiries
Arranging safety inspections
Transfer of utilities
Routine maintenance
Repairs
Payment of outgoings
Property inspection visits (upon request)
Renewal stage
Contacting all parties to assess plans
Handling all negotiations
Drawing up Renewal Agreements & Accompanying documents
End of Tenancy
Key holding
Arranging the check-out
Deposit negotiations