Lettings Fees and Charges
Please find below details on the fees or charges applicable to Landlords from 1st June 2019. If you are a tenant looking for information on fees relating to your tenancy, please visit our Tenants page here
All charges and fees are subject to VAT and are shown inclusive of VAT
New & Renewal Tenancy Agreement Fees:
Letting and Renewal Lettings Fee – Long Let:
13.2% of the total rent payable for the term of the tenancy including any renewal or extension terms, payable in advance.
Letting and Renewal Lettings Fee – Short Let:
24% of the total rent payable for the term of the tenancy for tenancies of six months or less including any renewal or extension terms, payable in advance.
Management Fee (Long and Short Lets):
7.2% of the total rent payable for the term of the Tenancy, collected on a pro-rata basis.
Reference Fees (for AST tenancies):
£60 per tenant/guarantor
Inventory Costs: The Inventory costs (preparation, check-in and check-out) are the Landlord’s responsibility except the cost of the inventory check-out if the tenancy is a non-AST when this cost is borne by the Tenant. Inventory costs vary (typical charges range from £170 to £750 but could be higher) depending on the size of the property and the level of furnishing.
Management Service includes but is not limited to:
Redecoration/Repair: The Management Fee is inclusive of the cost of dealing with matters of redecoration, renewal, replacement or repair costing between £500 and £1200 including VAT. The organisation and inspection of works in excess of £1200 will attract an additional administration and arrangement fee of 12% (including VAT) of the cost of the works. This charge will be deducted from any monies received by us on your behalf unless alternative arrangements for our payment are made in advance.
Non-Routine Management & Major Works: Fees in respect of non-routine management and major works are chargeable at either £78 per hour (including VAT) or 12% (including 20% VAT) of the final cost of the works undertaken.
Insurance Claim: The Management Fee is exclusive of the cost of pursuing insurance claims, which will attract an additional fee of 12% (including VAT) of the value of the claim. This charge will be deducted from any monies received by us on your behalf unless alternative arrangements are made in advance. In the event that you decide not to proceed with any insurance claim, Harrods Estates is pursuing on your behalf, Harrods Estates shall be entitled to recover its costs in relation to work undertaken, at the rate of £78 per hour (including VAT).
Expenses: All fees are exclusive of disbursements for couriers and extraordinary expenses.
Fair Contract Terms: We are legally required under the Unfair Terms in Consumer Contracts Regulations 1994 to ensure that our standard terms are fully understood and acceptable. Consequently if you do not understand or do not wish to accept any of our terms please tell us and we would be pleased to discuss them with you. By signing our Lettings Instruction Form it is assumed that you are accepting our terms and accept that they are reasonable.
Change of Tenant: In the event that you agree to a change of tenant during an existing tenancy, we reserve the right to make an additional charge to cover the cost of taking references, arranging for any new tenant to enter into the Tenancy Agreement, and the service of appropriate notices.
Disbursements: All fees are exclusive of disbursements for bank transfer charges (where applicable), couriers, key cutting and search reports and extraordinary expenses.
Withdrawal of Agreed Offer: If you instruct ESTATES to proceed with a proposed tenancy by completing a proposed offer letter, but subsequently withdraw such instruction, you agree to meet the cost of all expenses incurred by ESTATES during the period of the Instruction, at the rate of £60 per hour (including VAT) plus disbursements
Advertising: Our fees and charges include any expenses we may decide to incur in photographing and/or advertising the Property, unless otherwise agreed with you in advance in respect of advertising in certain specialist publications. If the Property is withdrawn from the letting market, if our Instructions are withdrawn or if the Property is let otherwise than through ESTATES, we reserve the right to seek reimbursement of expenses up to a maximum of £60.00 (including VAT) unless we have previously received your authority to exceed this sum.
Outstanding Accounts and Invoices: Any sums due to ESTATES under our Terms and Conditions of Business shall, if not paid on the due date, be subject to interest at the rate of 4% per annum above the base rate of National Westminster Bank plc ruling from time to time, calculated from the due date. This interest shall accrue on a daily basis and shall be payable before and after judgement.
Legal Expenses: In the event that ESTATES is obliged to instruct solicitors to recover any unpaid fees you will be liable to pay the solicitors fees and disbursements on a full indemnity basis whether or not proceedings are issued.
TDS Registration Fee: Where ESTATES hold the deposit as stakeholder it will be registered with the Tenancy Deposit Scheme Limited at no extra cost
Harrods Estates Limited is a member of The Property Ombudsman scheme (TPO) www.tpos.co.uk and our registration number is: N00344.
We subscribe to the TPO and ARLA PropertyMark Codes of Practice and to the governmentauthorised Client Money Protection scheme (CMP) operated by ARLA PropertyMark; our registration
number is: C0014853