Our terms and conditions of business are
- 12.5% of the monthly rental income for long term management
- 15% of the monthly rental income for short term management
- 17% of the monthly or weekly rental income for festival or holiday management
- VAT will be applied to these charges. Our aim is to be as flexible as possible in tailoring our services to meet the individual requirements of each landlord.
Long Term Management Terms and Conditions
For long term management, we undertake to find a tenant, take references and / or set up guarantors where appropriate. We take an inventory of contents showing the condition of the property and its furnishings. We draw up a lease to suit the particular needs of the landlord and tenant including liaison with lenders, mortgage companies and insurance companies etc.
We take meter readings and put utilities and services (with the exception of the telephone) into the tenants’ names and inform the Council of new occupiers. All rental and deposit moneys are collected and placed in our Clients’ account. When funds have cleared, we pass on the monthly rental (less our commission and other expenses) to the landlord. If tenants pay promptly at the beginning of the month our aim is to get cleared funds into landlords’ accounts by mid month. The deposit, if elected by landlord and agent to be taken, is passed on to one of the three government TDS (Tenant Deposit Schemes) in the prescribed manner.
Three property inspections a year are included in the 12.5% long term management package. Landlords wishing further inspections are charged at £35.00 +VAT each. A detailed photo inventory is taken at the start and end of each tenancy with further photos taken if required at mid tenancy. This photo inventory can be augmented with a written inventory for a fee of £50.00 +VAT. At the termination of the lease, Factotum reverses the procedure informing the landlord and the tenant accordingly. There is a £75.00 +VAT charge for new tenancy / lease renewal.
Should any problems arise during the course of the tenancy, Factotum will make every effort to resolve these without having to bother the landlord. We will attempt to contact the landlord if any extra (net) expense over £100 is incurred or where there is an imminent threat to public health or safety that could ultimately be the owner’s single or several liability then this sum can be exceeded at Factotum’s discretion. The fast majority of maintenance costs are dealt with on client accounting principles and not treated as input tax. While we pass any trade discount on to the landlord, our agreed commission will be added to all accounts handled by Factotum. Where contractors that are employed by Factotum on behalf of the landlord charge VAT, Factotum will pass on the gross cost and only charge VAT on the commission. Where contractors employed by Factotum on behalf of the owners do not charge VAT, this net charge will be passed on and VAT will only be charged on the commission. For larger contracts (usually greater than £2,000) a lower commission rate can be negotiated.
All emergency work carried out during the period of the let will, wherever possible, be with the landlord’s permission. Should we be unable to contact the landlord, or the landlord does not respond in an appropriate timescale, work will be carried out at Factotum’s discretion and duly charged. Factotum can liaise with insurers over any claim on behalf of the landlord. It is incumbent on the landlord to inform Factotum if they are non-resident landlords for income tax purposes.
Factotum cannot support third party insurance or service maintenance agreements nor guarantees on products; attendance will be charged in the event a tenant cannot be present to provide access with such agencies. If such agencies cannot deal with maintenance issues in a reasonable timescale and with reasonable consideration towards tenants, Factotum will step in and handle the problem. Factotum endeavours to address all our landlords’ legal obligations in respect of the legislation affecting residential letting and further to promote best practices. Landlords agree not to unreasonably frustrate or obstruct this process.
Factotum do not ask landlords to sign ‘sole agency’ agreements. In the event of our being unsuccessful in finding suitable tenants, landlords may terminate this agreement and will only be liable for advertising and any fixed costs out-with our normal charges. However, a one off fee equivalent of one month’s rent, will be payable if the landlord terminates this agreement before the end of the lease (including tacit relocation) and when a tenancy or a renewal of a tenancy has been entered into on behalf of the landlord. Factotum may terminate this agreement at any time. There is a seven day cooling off period from the date of this agreement unless a tenancy has already been negotiated on behalf of the landlord.
Expenses out-with our normal commission rate that may be incurred and are related to current legislation: Landlord Registration with the local Council, Housing in Multiple Occupation, Landlords Gas Safety Certification, Electrical Portable Appliance Testing (PAT), Electrical Periodic Inspection Reporting (PIR), Fire (smoke/heat) and Co2 detection, Fire Risk Assessment, Energy Performance Certification (including the green deal), Fire and Furnishings, Income Tax Reporting for Non Resident Landlords, Insurance and Repairing standards, TDS legislation, Tenant Move in Packs and additional requirements as and when instrumented by government. Please ask for details. Please note that if landlords already have valid safety certificates that are a legal requirement, Factotum MUST be in receipt of this documentation prior to the commencement of any tenancy otherwise Factotum reserve the right to carry out this work themselves and charge the landlord accordingly.
For short term, festival and holiday lets (under six months) please see the landlord’s conditions on the appropriate booking form. In the event of there being a short term or holiday let through Factotum then those terms and conditions override these terms and conditions. Should the landlord have any special requirements, not broadly covered by the above, Factotum will charge separately for these.
Properties are actively marketed through our usual channels, predominately through our own website and linked portals. Also direct marketing and contact with companies and relocation agencies. Flats may be advertised in newspapers and periodicals, and where appropriate, a “To Let” sign may be displayed outside the property. The landlord is charged separately for these activities.
There is a one off registration fee of £100.00+VAT which will only be applied once the flat is let and can be deducted from the first month’s rental. ‘Addendum to Conditions Agreed’ on each individual contract confirms agreed commission rate, may clarify, add detail and / or override these terms and conditions. This agreement will be governed by Scots Law.
Short Term Management Terms and Conditions
The landlord who signs a contract with Factotum must be satisfied that the information given and the rent expected is correct. Factotum does not offer guaranteed lets. In the event of the tenant failing to sign their part of any agreement, cancelling or dishonouring their part of the agreement, Factotum will not be held responsible. Factotum will make every effort to re-let the property, but no guarantee is given. A registration fee as indicated in the terms section of this form will be charged together with our commission as stated when the flat is let. As Landlord you acknowledge you are the rightful owner of the property or have the permission of the owner to sub-let.
Property Standard and Contents
It is the responsibility of the landlord to ensure that the property is ready to let and to inspect the property on the tenant’s departure. All properties should be handed to tenants in a clean and tidy state, fully functional to accommodate the number of persons using the property. Cleaning should be of a professional standard and beds should be made up with good quality linen, freshly laundered and ironed. Adequate linen and towels must be provided for each tenant. This can be purchased from Factotum. Should the landlord fail to provide adequate quality and quantity of linen, this will be provided by Factotum and the cost of hire or purchase duly charged. Landlords should not expect linen to be laundered prior to tenants’ departure. If there is more than one tenancy it is the landlord’s responsibility to arrange laundry and cleaning of the property between lets. Landlords should check that the property as described on our website is accurate and services such as telephone, broadband and television provision are fully operational and properly functioning two weeks prior to the let.
Should the tenants find the property dirty, untidy or otherwise dysfunctional they may be relocated and the let cancelled. Alternatively cleaning and other repairs will be carried out and duly charged. Should the property not meet the standards intimated by telephone, letter, photo or otherwise, Factotum will not be held responsible for any loss of income. It is the landlord’s responsibility to provide their own inventory, should they consider this necessary. Landlords should leave clear, labelled instructions re appliances, immersion heater, central heating, boilers etc., and rubbish collection days, giving contact numbers and full details of any appliance or service contract guarantees. Tenants are not expected to wait in attendance for service/repair engineers. Should emergency works have to be carried out, Factotum may attempt to contact the landlord, but work can be carried out at Factotum’s discretion and duly charged.
One set of clearly labelled keys must be returned to Factotum with the signed agreement as confirmation of this booking. This set will be retained by Factotum during the let to gain emergency access should this be necessary. The number of additional sets, as indicated on the rental agreement, (usually one set per bedroom) must reach Factotum two weeks prior to the start of the let. It is the landlord’s responsibility to ensure that all sets of keys (particularly newly cut sets) are tested and the locks are in good working order. Keys can be picked up during office hours. Outside these times key collection must be by special arrangement and is subject to a charge.
Landlords should ensure that the property and its contents are covered by their insurance policy, including any extra insurance required to cover a let falling through or being cancelled. Tenants are advised to have their own belongings insured separately.
Council tax, and rental or standing charges for utilities and telephone rental charges are included, unless otherwise stated in the special terms section on this agreement. Also included is any usage of utilities, phone and broadband as stipulated in the special terms section on this agreement. It is the landlord’s responsibility to read the meters and inform Factotum of any excess incurred. It is the responsibility of the Landlord to ensure that the property has a working telephone provided, if advertised; providing incoming and outgoing service. An itemised and edited account of all calls + VAT should be submitted to Factotum at the end of the let. If Broadband or other Internet connection is advertised this must be fully functional throughout the period of the let.
Payment of Rent
The rent and all deposit moneys received will be held, in trust, by Factotum in a ‘Client Account’ until the end of the lease and until any deductions for breakage, damage, phone usage, or any other financial claim have been agreed between landlord and tenant. Rent due will be paid, less commission, together with agreed deductions up to four weeks from the end of the lease except where any receipts for deductions have not been received and / or agreed with the Tenant. Where the rental period is over one month, payments may be paid monthly according to the start date of the agreement. The final month’s rent will be paid, less commission, together with moneys for any deposit deductions up to four weeks from the end of the lease except when any deposit deduction receipts have not been received and or agreed with the Tenant. If the landlord fails to provide Factotum with valid receipts or reasonable estimates for deductions within three weeks of the lease ending, deposits (or part thereof) may be returned to tenants without further recourse to the landlord. All payments to landlords are dependent on funds paid by the tenants being fully cleared into our Client Account. In the event of tenants not honouring their payments or other obligations under the terms of their agreement, Factotum will not be held liable. Any disputes between landlords and tenants over rent or deposit deductions will normally be dealt with by Factotum. An administrative charge as per the commission rate will be levied on all associated bills plus any other costs administered by Factotum plus any viewing, telephone, fax, meetings, etc. If the landlord and tenant cannot agree on an amount in settlement in respect of any dispute over refund of deposit or any other financial claim and fail to agree upon a mutual arbiter within three months of the tenancy ending, Factotum will apportion funds between landlord and tenant as they feel fit and neither the landlord nor the tenant will have any claim against Factotum in respect of that apportionment.
The purpose of the tenancy is for a holiday and that under the terms of the Housing (Scotland) Act 1988 where the purpose of the tenancy is to confer on the tenant the right to occupy the property for a holiday, then that tenancy is not an Assured Tenancy under the terms of that Act. These conditions are subject to Scottish Law.
Each contract might vary to some extent depending on the landlords, tenants and agents’ special requirements. The terms and conditions stated here are an example of a standard contract.
Special terms might include the following:
- Landlord to arrange key delivery and letting in of tenants
- Council tax and rental / standing charges on all utilities are included in the rent. Reasonable use of utilities £30.00 per week or £15.00 per utility per week (whichever is the lesser).
- Broadband, if provided, assumes a data transfer limit equivalent to 10 gigabytes per month. Please inform if different.
- Admin fee £75 + VAT to be deducted from account.