Management and Letting Services

The following services are common to both short and long term lettings.

Details our services for short and long term letting are available below. We also offer a full management service.

If you have any questions about our letting and managment services or have a specific requirement, please call us on 00 44 (0)20 7935 9512 or complete our enquiry form.

This listing is followed by services specific to each individual type of letting.

  1. Initial inspection and valuation (for rental purposes) of the property and general advice on types of Tenant, types of tenancy, length of letting, terms, etc.

  2. Introduction of suitable applicants, screened by us.

  3. Showing the property to prospective applicants (if required).

  4. Taking up all necessary references (if requested).

  5. Drawing up the correct form of tenancy agreement and making an inventory of furniture, fixtures and fittings (if required). There are additional charges for preparing the appropriate Tenancy Agreement and agreeing terms with the proposed Tenant (if required).

  6. An individual specialist inventory firm can prepare an inventory and to check the Tenant in and out at the end of the tenancy. The landlord pays for the preparation of the inventory, together with a check-in fee and the Tenant pays for the check-out (if required and requested).

  7. The collection of a security deposit, normally held by us in our client's account.This is held against any dilapidation, payment of final accounts, etc. All funds will be sustained with any interest earned to be retained by Globe Apartments.

  8. The regular collection and remittance of rent, according to instructions, accounting on a monthly or quarterly basis. Non-residential Landlords should take note of Non-Residential taxation regulations that became effective on 6 April 1996. These regulations will not affect any tax liability; it will affect the way in which monies are collected by the Inland Revenue.

    Non-Resident Landlords can now apply directly or through a UK accountant to the Inland Revenue to issue the appropriate Exemption Certificate. This will then allow Globe to release funds Gross of tax. Until an Exemption Certificate is granted or if an application is not made Globe must retain 22% of the proceeds due and pass these quarterly in arrears to the revenue.

    Overpayment will have to be reclaimed at the end of each tax year by submitting a statement of account directly to the Inland Revenue. If an introduction to an accountant is required we can arrange such an introduction. In view of the extra administration costs involved in dealing with non-exempt Non-resident Landlords any interest earned on retained funds will be for the benefit of Globe Apartments. Should Landlords fail to instruct Accountants, Globe reserves the right t appoint an Accountant to deal with these tax affairs, the charges of which will be deducted from rent receipts or from money retained for any tax liability that may arise.

  9. Whilst Globe collects rent on behalf of the Landlord, remitting these funds to the Landlords bank account or as instructed, this will only be done once funds have been issued to Globe and have been cleared through their clients account. Should the tenant default on the terms of the Tenancy Agreement it may be necessary to instruct Solicitors. This would be at an additional cost if the Solicitors were instructed on the Landlords behalf through Globe Apartments.

  10. Landlords should be aware of Safety Legislation that applies to each residential letting, namely, safety certificates for all gas appliances, compliance of soft furnishings and approval of electrical appliances. Attendance and further information regarding these matters will be charged separately if required.

  11. Globe prides itself on the quality of its administration and client support. At various times clients require additional work to be undertaken. Globe reserves the right to charge for time and attendance for such additional work.

  12. Additional reasonable charges are made when providing copy duplicate rent statements.

  13. In the event of an insurance claim being made and Globe are instructed to attend to such a claim a minimum charge of £150 plus VAT will be made to cover Globe's administrative costs.

 

The Following Service/Services Are Specific To Short Term Lettings

  1. Arranging (if requested) the payment of gas, electricity and any other standing charges that may arise in the day to day running of the property. Globe Apartments must be given such information as needed to re-direct accounts to Globe for settlement. The telephone will (subject to prior arrangement) be operated by Globe for their own benefit.

Globe Apartments can also arrange minor repairs and maintenance that may arise during a tenancy and deduct the cost with other expenses from rents received or funds held on account.

The Following Service/Services Are Specific To Long Term Lettings

1. Arranging transfer of gas, electricity and telephone accounts into the tenants name.

Letting And Rent Collection Services Specific To Long Term Lettings

This service runs in conjunction with the letting service, but includes:

  1. Collect rent from Tenants on a monthly or quarterly basis.
  2. Forward net funds to the Landlord with a detailed rent statement.
  3. Return appropriate deposit once agreed with Landlord and tenant.
  4. Notify utility companies of the termination of the tenancy.

FULL MANAGEMENT SERVICES

Full Management Services For Short And Long Term Lettings

This service is fully comprehensive. As well as our normal letting services, we take responsibility for:-

  1. Checking Tenants in and out, and arranging cleaning, laundering, etc., if required.
  2. Re-letting the property according to original instructions.
  3. Arranging for any maintenance and/or repairs to be carried out and settlement of regular bills and accounts on your behalf.
  4. Detailed and regular accounting to Landlords.
  5. In the event that Globe is instructed on behalf of or by the Landlord to process an insurance claim a minimum (standard charge of) £100 + VAT will be made. Dependant on the extent of the claim and the works evolved Globe further reserves the right to make additional charges subject to prior agreement with the Landlord.
FULL MANAGEMENT FEES

Full Management Fees For Short Lets

Full short let management services - 17.5% of the gross rental (plus VAT) for each and every letting and any renewals that may result.

Globe employs a team of housekeepers who will carry out weekly servicing and attendance. The servicing attendance is charged separately at a rate of £34.50. for a studio or 1 bedroom apartment, £36.50 for a 2 bedroom apartment and £40.00 for a 3 bedroom apartment. Larger properties will be priced at time of appointment. All rates are subject to VAT at the prevailing rate.

Each week let will be subject to a service charge, unless otherwise agreed.

The Tenant will pay for the cleaning at the end of tenancy the Landlord will pay for servicing during the tenancy.

Should a tenant introduced by Globe Apartments purchase this or any other property owned by the Landlord, then in this event, commission equal to 3% plus VAT of the agreed sale price will be due and payable to Globe Apartments.

Full Management Fees For Long Lets

Letting Services - 10% of the gross rental (plus VAT).

Part Management Services - 12% of the gross rental (plus VAT).

Full Management Services - 15% of the gross rental (plus VAT).

In the event that Globe deducts commissions due from rents received rather than in advance, then and his event deferred fees will still be due to Globe should the Landlord dispose of his interest or where other circumstances would lead to Globe being at a financial loss as a result of commissions being deferred.

Globe can arrange if required a full range of insurance products that may be appropriate to Landlords. These include building insurance and legal protection insurance in the event of any Tenant default.

A GUIDE TO TAX IMPLICATIONS

Rental Income
Rent derived from letting property is taxable and generally, all such income, regardless of the type of lease is pooled together.

Self Assessment
Even if you do not receive a Self Assessment Tax Return, the onus is on you to notify the Inland Revenue if you have a tax liability on letting income.

Record Keeping
There is a requirement under Self Assessment to keep sufficient records to enable you to accurately compute your letting profits each year. This will include rental statements provided by Globe Apartments, receipts for bills paid and any other expenses incurred in the letting of your property.

Deductible Expenses
Agent's charges are fully deductible in arriving at the taxable profit, as are accountancy costs incurred in connection with the preparation of annual accounts.

You may also deduct expenses in respect of water rates, repairs, maintenance, insurance, certain expenses incurred prior to letting the property will be allowable for tax purposes. An allowance for wear and tear of furnishings can also be claimed.

ADDITIONAL TAX IMPLICATIONS FOR THE NON-UK RESIDENT

Liability To Tax
Your status as non-resident provides no immunity from United Kingdom tax on rental income.

The Agent's Responsibility
Under the Non-Resident Landlord Scheme Globe Apartments are obliged to deduct tax from all rents paid, after deduction of certain expenses. Globe Apartments will then account for this tax to the Inland Revenue and furthermore submit annual Returns providing information about you and details of your property, the gross rent paid, the tax-deducted etc.

Approval To Receive Gross Rental Income
You can apply to the Inland Revenue to receive your rental income without tax having been deducted at source. Contact your Inland Revenue office for further details as certain conditions apply.

Deductible Expenses
You can set off against the rent received, all outgoings of a revenue nature. These include maintenance, insurance and water rates, as well as agent's and accountancy fees.

In case of furnished lettings, a further deduction will be allowable to cover the wear and tear of furnishings.

Allowances for non-residents Most British expatriates are entitled to full tax allowances. Contact your Inland Revenue office for eligible categories.

REGULATIONS

THE GAS SAFETY REGULATIONS 1998
Landlords must be aware of the Regulations that apply to rented properties. The Regulations place a duty on the Landlord to ensure that all gas appliances, flues and associated pipe work are maintained in a safe condition at all times.

Annual Gas Safety Check
Gas appliances and flues in rented accommodation must be checked for safety within 12 months of installation and every twelve months thereafter. The checks are to be made by a CORGI registered gas installer.

Tenancies
Prior to a tenancy agreement, ensure that a gas safety check has been carried out on each appliance and flue within the 12 month period before the tenancy commences or has been or will be carried out within 12 months after the appliance or flue was installed, whichever is later.

Records
The Landlord or his agent is required, under the Regulations, to keep a record of safety checks on each appliance and flue. Records must be kept for 2 years from the date of the check.

The Gas Certificate
A copy of the certificate must be given to any new tenant before the tenant occupies the premises to which the record relates. A copy of the certificate must also be given to each existing tenant within 28 days of the annual check.

The above is a general guide. For further details contact the:

Gas Safety Advice Line (HSE Helpline). Telephone 0800 300 363.

THE FURNITURE AND FURNISHINGS(FIRE SAFETY) REGULATIONS
Landlords must ensure that the furniture and furnishings supplied to tenants meet the rules on fire safety, which came into effect on the 1st March 1993.

The regulations lay down strict controls on furniture, fabrics and fillings to make them less flammable and to reduce the risk of death or injury.

Liability
The Regulations apply to Landlords who provide furnished accommodation in the course of a business. Other letting professionals may also have liability, furniture manufacturers and dealers such as importers, retailers and upholsterers also come under the control of the Regulations.

The Furniture
The Regulations apply to all domestic furniture and furnishings containing upholstery (new and second hand) manufactured after 1950 including sofas, chairs, beds, headboards, divans, cots, children's furniture, cushions and pillows. Curtains and carpets do not come under the Regulation.

Compliance
The Regulations set out the safety tests (in general, the cigarette, match and ignitibility tests) that furniture and furnishings must pass. They stipulate that warning/information labels are permanently attached to such items (beds and mattresses do not have to carry the labels).

The above information is a brief guide only. It does not cover all the details of the law on furniture safety.