Aberdeen Solicitors, Duthie Ward Solicitors, Aberdeen lawyers, property leases Aberdeen Scotland

Duthie Ward Solicitors, Aberdeen Scotland

PROPERTY LEASES

Fixing the rent
We will advise what rent to seek to maximise your income. It is usually better not to overpitch this so that vacant periods can be kept to a minimum.

Finding the tenant
We send details to the major oil and relocation companies who are often interested in larger properties. We usually advise one or more small adverts in the P& J. We interview prospective tenants to find a tenant likely to pay the rent promptly and look after the property well. A fee of one month's rent plus vat and outlays applies. The same fee applies on any subsequent change of tenant.

Deposit
Normally equivalent to one month’s rent and held in a separate building society account, it is returned to the tenant at the end of the lease less any deductions for damages/deficiencies. In some cases, eg. if a tenant is young, we recommend asking that a parent or someone other than the tenant signs as guarantor.

Furniture and contents
Most properties are let fully furnished and include all items which the tenant (and family) need to live, eat, sleep etc. comfortably. Well furnished properties tend to lease more quickly and command higher rentals.

Inventory
We usually recommend that an independent inventory is prepared - listing the contents and condition. At the end of the tenancy the inventory is checked. Any damage or deficiencies over and above normal wear and tear are noted and, where appropriate, depreciation figures given. The cost of the inventory is split 50/50 between the owner and the tenant.

Lease
It is important that a written lease in proper legal form is prepared and that any necessary notices under the Rent Acts are given. Normally leases are set up as "short assured tenancies" to ensure that the property can be recovered by the owner after the period of lease has expired. A fee of £100 plus vat applies. (In the case of company tenants only, this charge is split 50/50).

Lender's consent
Where there is a mortgage from a bank or building society, consent should be requested before letting commences.

Services
Services such as gas, electricity, telephone etc. are transferred to the name of the tenant so that all accounts are issued in the tenant’s name.

Council tax
The tenant is liable for the council tax provided the lease is for a period of at least six months. We inform the council of changes in occupancy. If there are periods when the property is not occupied the owner may be required to meet a 50% standard charge.

Insurance
The owner should insure the buildings and the owner‘s furniture and contents. Owners should inform their insurance companies of the lease in case there are changes to the cover provided as a result of the tenancy or during any period when the property is unoccupied. Tenants should arrange insurance themselves for any items they bring to the property.

Keys
We ask the owner to provide us with all keys. We keep one set at our office in case of emergencies.

Rent
As part of the factoring service we collect the monthly rent from the tenants and remit each month to the owner - normally, with the owner’s agreement, direct to the owner’s bank, less any outlays for insurance, repairs etc.

Maintenance
The tenant is responsible for repairs resulting from negligence or fault of the tenants and the owners are responsible for other maintenance and repair costs.

Factoring
This includes checking that the rent is paid on time, collecting the rent, remitting to the owner’s bank account, arranging routine repairs, arranging garden maintenance (where provided by the landlord), holding the deposit in a separate account, providing annual leasing statements, checking the property at outgo, including checking settlement of services accounts and refunding the deposit. The factoring fee charged is 10% of the monthly rent.

Work outwith factoring
Any work outwith factoring is charged on a time basis at normal solicitor charge-out rates less 10%.

Income tax
If the owner is resident abroad during the lease, we as the property leasing agents can be required to pay the income tax on the rent, except in cases where Inland Revenue agree otherwise. Inland Revenue do normally agree, but otherwise we retain an amount (normally 20%of the gross rental) in a separate interest bearing account. Where clients have their own accountants we provide rental statements to the accountants who deal with the income tax. Alternatively, we can recommend accountants to deal with this aspect.

To talk about your requirements and how we can help, contact Alastair Duthie or telephone on (01224) 621622.

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42 Carden Place, Aberdeen, AB10 1UP, Scotland
Tel: 01224 621622 Fax: 01224 621623 e-mail: info@duthieward.co.uk