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Letting Costs

Below are costs associated with letting your property

Estate Agency Fees
As a bespoke agent Prospect Residential tailor our fees to meet individual clients needs.  We offer three different levels of services, Find a Tenant, Rent Collection and Management.  Below are our standard fees for each of these services, however please do contact us so we can discuss your individual needs, we can then design a package and fee to meet your requirements:-

Let Only 10% + VAT of rent due - this is invoiced bi-annually (1st six months will be collected from initial rental payment)

Rent Collection 12% + VAT of rent due - this is collected monthly from the rental income

Full Management 15% + VAT of rent due - this is collected monthly from the rental income

Tenancy Renewal for 2nd year

Let only 8% + VAT of rent due - this is invoiced bi-annually

Rent Collection 10% + VAT of rent due - this is collected monthly from the rental income

Full Management 13% + VAT of rent due - this is collected monthly from the rental income

Tenancy Renewal for 3rd and subsequent years

The commission for each service will drop a further 1% + VAT between the 3rd and 5th year.  After 5 years there is no fee due, with the exception of 3% + VAT for the management service.
 
Tenancy Agreement
The cost for preparing the tenancy agreement is £120 inclusive of VAT VAT.

One-off costs

Mortgage Consent to Let
Applicable to all who have a mortgage (unless buy to let mortgage).  Price varies depending on the lender.

Professional Cleaning
Essential at tenancy commencement (costs will be advised on individual properties based on the size of property and condition) it will usually be no less than £75 and no more than £400 + VAT.

Inventory
To be prepared by an independent Inventory Clerk (costs will be advised on individual properties based on furnishings and size) it will usually be no less than £90 and no more than £450 + VAT.

Safety Checks

A Gas annual safety check by a Gas Safe registered engineer is £95 inclusive of VAT. 

Electrical safety check by NIC EIC approved electrician (recommend although not compulsory).  The cost varies depending on the contractor conducting the inspections and the size of property, usually in the region of £150 to £250 inclusive of VAT.

A Portable Appliance Test (recommend although not compulsory) is £110 inclusive of VAT for up to 5 items, each item thereafter is an additional £6 inclusive of  VAT.

EPC
An Energy Performance Certificate (valid for 10 years) is 95 inclusive of VAT. 

 

Maintenance

Cost will vary depending on what maintenance, if any, is required, and also the contractor who carries out the works.  If the property is managed Prospect Residential will hold a management float of £300 (where rent is paid monthly) and £500 (where rent is paid bi-annually) and authorise works up to such value without seeking prior from the Landlord.  We can tailor the management float to meet individual landlords needs, this can be agreed prior to the commencement of the tenancy.  When the float goes below the agreed amount it will be topped back up from the rental income.   

 

Major works/Refurbishments

Prospect Residential will arrange 3 estimates for all major works/refurbishments, should a landlord decided to proceed with 1 of the estimates there will be a charge of 10% + VAT of cost of any works over £2500. 

 

Additional Property Visits

A additional visit to a property, in addition to the routine management visit will be £60 inclusive VAT. 

 

Accompanying third parties to a property

Should Prospect Residential need to accompany a third party, such as Landlords own approved contractor to a property the cost will be £30 inclusive of VAT per hour.

 

Court Attendance

Should Prospect Residential be required to attend Court, on behalf of, or with a Landlord the cost will be £95 inclusive of VAT per hour.

 

Sale Fee  - if sold to Tenant

If a property is sold to a Tenant the commission will be 1% + VAT of the sale price.

 

Sale Fee - if property sold with ongoing tenancy

Should the purchaser chose not to continue the letting service with Prospect Residential the balance of the letting fee due for the remainder of the term.

 

Telephone Installation

A tenant will expect to have a working telephone line installed.  Price varies depending on supplier, it us usually between £100 to £160.

 
Ongoing costs

Insurance
The Landlord is responsible for insuring the building and the Landlords own contents listed on the inventory.  The cost varies depending on type of cover required and the provider.

Service Charge/Ground Rent
The Landlord is expected to pay the ground rent and service charge.  The block managing agent/freeholder will advice on cost of such, it is usually invoiced bi-annually.