HMO Fees and Services
Managing an HMO requires adherence to detailed regulations to ensure tenant safety and compliance with local laws. Clear agreements should be in place between the agents and cribs estates regarding shared responsibilities and expectations from agents.
Managing an HMO involves specific services and charges due to the unique requirements associated with this type of property. Here’s an overview of what Cribs Estate agents in London can charge against the services offered.
HMO Services:
1. Licensing and Compliance:
- Ensuring the property meets local council HMO licensing requirements.
- Conducting risk assessments for safety and health standards (e.g., fire safety checks).
2. Property Management:
- Tenant screening to ensure compatibility among tenants.
- Lease agreements tailored for multiple occupants.
- Regular property inspections to maintain safety and quality.
3. Maintenance and Repairs:
- Coordinating regular maintenance (plumbing, electrical work, etc.).
- Immediate response for urgent repairs to uphold safety standards.
4. Rent Collection:
- Collecting rent from multiple tenants, which requires clear record-keeping.
- Handling any financial disputes among tenants.
5. Utilities Management:
- Arranging and managing utility bills for shared accommodations.
- Ensuring proper settings for communal areas (e.g., heating, hot water).
6. Conflict Resolution:
- Mediation services for tenant disputes, ensuring a harmonious living environment.
7. Marketing and Tenant Placement:
- Promoting the property to attract suitable tenants.
- Conducting viewings and interviews with potential tenants.
Charges:
Management Fees:
- Generally a percentage of the monthly rent, often higher due to increased management complexity (typically 8% to 15%).
Licensing Fees:
- Costs for obtaining and renewing HMO licenses as required by local councils.
Maintenance Fees:
- Ongoing maintenance costs can be higher due to the shared nature of facilities, including regular cleaning services.
Tenant Placement Fee:
- A one-time fee for finding new tenants, often equivalent to a percentage of the first month’s rent.
Utility Charges:
- Additional charges for managing shared utilities, which may be billed to tenants collectively or individually.
Eviction Costs:
- Legal fees and court costs associated with evicting a tenant if disputes arise.
Cleaning Fees:
- Charges for cleaning communal areas, which may be deducted from tenant deposits or charged separately.
See the document below for the details of our services and charges.
| Services Offered and charges | HMO Management |
|---|---|
| 14% | |
| Market Appraisal | |
| Professional photographs with virtual tour and floorplans | |
| Check all the compliance of the property includes the valid Gas safety, EICR, EPC Pat testing etc | |
| Advice to the landlord if something needs to be attended like smoke alarms and general maintenance requirements | |
| Advertisement on property ports incl. Zoopla Right move Prime location on the market Facebook Instagram Tik Tok X etc | |
| Received enquiries by applicants | |
| Arrange viewings for potential applicants | |
| Find tenant and start referencing from reputable referencing agencies Good lord, letting in a hub etc | |
| Right to Rent checks | |
| Upon passing the ref. sign the AST contract and take first month rent and 5 weeks deposit | |
| Move the tenant in the property & Hand over the keys | |
| Paid Funds to landlord with final account statement along with all the paperwork | |
| Secure the deposit in relevant scheme my deposits. | |
| Received Monthly rent | |
| Paid to landlord and with monthly rent account statement | |
| Tenancy Renewals – Yearly basis | |
| Deal all the maintenance issues of tenants | |
| Arrange contractor for all maintenance issues between landlord and tenants | |
| Manage all Gas cert / electric cert / EPC cert / EICR cert as per expiry dates | |
| Visit property every 6 months and report to the landlord on property condition. | |
| Advice landlord on all the change in legislation | |
HMO Licence Application(excludes cost of licence and any risk assessment or other documentation required to grant the licence) |
£550.00 |
Agent as Licence Holder for Landlord Fee(excludes cost of licence and any risk assessment or other documentation required to grant the licence) |
£350.00 |
Formulating Deposit Adjudication Claim (LRC/LOS) |
Included |
Formulating Deposit Adjudication Claim (FM) |
Included |
Inventory PreparationUnique or unusual houses and those exceeding 5 bedrooms with 2 reception rooms will be subject to quotation. |
Included |
Inventory Check-InUnique or unusual houses and those exceeding 5 bedrooms with 2 reception rooms will be subject to quotation. |
Included |
Inventory Check OutUnique or unusual houses and those exceeding 5 bedrooms with 2 reception rooms will be subject to quotation. |
Included |
Energy Performance Certificate fee |
£125.00 |
Gas Safety Record fee |
£95.00 |
Portable Appliance Test fee |
£125.00 |
Electrical Condition Inspection Report Fee |
£150.00 |
Legionella Risk Assessment fee |
£200.00 |
Section 21 Possession Notice |
£195.00 |
Section 8 Possession Notice |
£195.00 |
Please be aware that we may receive commission & referral fees from our panel of contractors
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