Service and Fee Schedule Information for Landlords
Palace Gate Lettings takes pride in operating with transparency and with fairness at all times.
There are three service and fee levels offered by Palace Gate Lettings. Below are the standard charges to Landlords according to the respective service:
- Letting only service (Tenant finding, collection of initial months’ rent and security deposit, deduct for any pre tenancy invoices, negotiate renewals and prepare extension agreements) – 10%+VAT (12% inc VAT) of the annual rent achieved payable six monthly in advance.
- Letting & Rent Collection service (collect, remit monthly rent and provide statements, advise on rent arrears action) 12%+VAT (14.4% inc VAT) of the monthly rent achieved payable monthly.
- Letting, Rent Collection & Management ( includes arranging routine repairs, inspections twice a year, holding keys throughout tenancy, advising on deposit return deductions, if any) 16%+VAT (19.2% inc VAT) of the monthly rent achieved payable monthly
The above fees become due once Tenants are found and are payable for the duration of the tenancy, including any renewal or extension of the tenancy to the same Tenants or any new Tenant introduced by the original Tenants. We would be happy to discuss individual Landlords requirements which we will be able to reflect in our fees if appropriate.
Other Fees and Services:
In addition there are other charges that Palace Gate Lettings make, in respect to other aspects of the letting service which are as follows:
- Preparing the Tenancy Agreement £200+VAT (£240 inc VAT) payable only at the start of the tenancy.
- Where a deposit is held by Palace Gate Lettings for the duration of the tenancy, the deposit will be registered with the TDS who are a Government approved deposit protection scheme. The charge for registering the deposit is £50+VAT (£60 inc VAT) per annum for as long as the deposit is held and registered with the scheme.
- Energy Performance Certificates (EPC) are required for all properties to be rented out. Landlords are responsible for the cost of having an EPC carried out and it is a legal requirement to have a valid EPC prior to commencing any marketing. Approximate cost is £60 payable to the contractor.
- Inventories are required for all tenancies in order for the both the Landlord and the Tenant to be able to handle the deposit fairly at the end of the tenancy. Without a detailed inventory and a check of the property at the start and the end of the tenancy it may not be possible to make deductions if required. from the deposit. The cost of the inventory is the Landlords responsibility and consists of an initial preparation of the inventory and costs for checking in and checking out the Tenants. Costs vary according to the size of the property and if the property is furnished or unfurnished. Inventories are carried out by independent companies and individuals who can be instructed by Palace Gate Lettings to act on your behalf.
- A Change of Tenant will incur a charge of £50+VAT (£60 inc VAT) to cover part cost of administration, tenancy agreement, deposit exchange and Right to Rent checks.
- Palace Gate Lettings will make a charge of £50+VAT (£60 inc VAT) where the company is required to wait in at a property.
- Additional Property Inspections or Visits at the Landlord's request will be charged at £50+VAT (£60 inc VAT) per visit.
- Vacant Property Management Fee where requested by a Landlord will be charged at £50+VAT (£60 inc VAT) per visit to cover the time associated with visiting the property to carry out a basic visual check of the property. A further fee of £20+VAT (£24 inc VAT) will be charged for arranging minor maintenance works (excludes refurbishments, improvements and decoration works), plus the contractors charges. Palace Gate Lettings must be in receipt of cleared funds to cover all expenses and costs prior to instructing works.
- Palace Gate Lettings charge a fee of 10%+VAT (12% inc VAT) of the overall net costs on all major maintenance issues where the cost of works exceeds £1,000. The same charge is also applicable where we have been instructed by the Landlord to carry out major works or a refurbishment programme on a property.
- Where Landlords are non UK residents, Palace Gate lettings are required to retain tax from the rent collected and to submit quarterly non-resident receipts/payments to the HMRC, for a charge of £40+VAT (£48 inc VAT) is payable per quarter. Where Palace Gate Lettings have approval from HMRC to pay rent without any deduction of tax, this fee will not be charged.
- Court Attendance: a fee of £50+VAT (£60 inc VAT) per hour is payable per person for any court attendance and travel time required plus travel expenses.
- Applications for HMO or for Selective or Additional Licences will be charged at £250+VAT (£300 inc VAT) per application.
- If additional copies of rent statements are required a fee of £5+VAT (£6 inc VAT) will be payable for each statement.
Rent Collection & Let Only Additional Fees
- An administration fee of £20+VAT (£24 inc VAT) will be charged, in addition to the contractors charges, for arranging Gas Certificate’s, Electrical Tests, EPC’s or any other safety checks where we do not manage a property. We must be in receipt of full clear funds and keys for access prior to arranging any contractors.
- Where we are asked to carry out a Smoke Alarm Test and Carbon Monoxide Alarm test we will charge a fee of £40+VAT (£48 inc VAT) to carry out tests. We must be in receipt of full clear funds and key for access prior to carry out any test. The test does not include replacement of any faulty alarms.
- Submitting Deposit Disputes for Let Only and Rent Collection Landlords will incur a fee of £120+VAT (£144 inc VAT).
- Right to Rent follow up checks on renewals or change of Tenants for time limited visas in accordance with the Immigration Acts 2014 and 2016. This is only carried out at the Landlords request and it is a Landlords responsibility to ensure they are compliant. A fee of £30+VAT (£36 inc VAT) will be payable for any Right to Rent checks.
- Serving of Legal Notices (Section 8, Section 21). A fee of £50+VAT (£60 inc VAT) will be payable in advance per notice.
Start renting your Property in South West London today
If you’re looking to rent your property out and are in need of professional help, take the next step by contacting us today. With letting agents in Battersea, Balham, Clapham and Earlsfield, we can easily arrange a lettings appraisal and offer you friendly advice and guidance on the whole process. Give us a call, or use our quick and simple contact form.
Palace Gate Lettings is a Licensed Member of ARLA Propertymark ( www.arla.co.uk ) and holds Client Money Protection (CMP) provided through ARLA Propertymark. Client Money Handling Procedures can be found at www.propertymark.co.uk/working-in-the-industry/member-requirements Palace Gate Lettings is also a member of The Property Ombudsman who are an approved independent redress scheme.
For more information, the Government have produced a leaflet entitled “How To Rent” that Landlords and Tenants may find useful. It can be found at www.gov.uk/government/publications/how-to-rent