West Cornwall Cottage Holidays

Statutory Obligations As An Owner

Statutory Obligations As An Owner

WHAT MUST I PROVIDE BY LAW?

GAS SAFETY

All rental properties that utilise Gas must conform to the Gas Safety Installation and Use Regulations (1994) and must conform to an annual test by a registered plumber. The   agency cannot rent the property without this safety certification.

ELECTRICAL

As from January 2005, any new or altered electrical installations must comply with IEE 16th Edition Standard BS7691. Properties should have wiring tested every four years and portable domestic appliances should be tested every 12 months (PAT Testing) – This is a mandatory requirement and therefore the  property cannot be let until this certification  has been issued.

FURNITURE

All upholstered furniture including sofas, chairs and mattresses must comply with current fire regulations – all compliant furniture will carry a fire retardant label normally in the form of a cigarette.

FIRE

All properties must supply a wall mounted fire extinguisher, written, laminated and wall mounted instructions on what to do in case of a fire and a fire blanket in the kitchen. Each property must be covered by comprehensive public liability insurance to a minimum of £2,000,000. Please ask for further details.

EPC

An Energy Performance Certificate is required and this can be arranged by WCCH and undertaken by a local assessor. The  charge is approx £50, including VAT.

TAX

WCCH is required by law to inform the inland revenue of income generated through the letting of property. Please consult your  accountant or local tax office for further details.

BATHROOM

All lighting must be encased or recessed. No plug sockets or any other electrical appliances are permitted in the bathroom.

DISABILITY DISCRIMINATION ACT

The recent change in this law affects any individual who provides a public/private service. All reasonable steps must be taken to ensure that a property offers sufficient  access/facilities for the disabled. Obviously for many holiday properties this is extremely difficult due to the age or location of the property. Please ask for further details.

ARE THERE ANY OTHER OBLIGATIONS?

- All WCCH properties are inclusive of all utility charges (to include Gas, Electricity. Oil and Water. Logs and coal for open fires are also included.

- All WCCH properties are inclusive of all linen (to include bed linen, tea towels) and personal towels – one bath and one hand.

- All WCCH properties must provide a welcome tray to include a minimum of a Cornish Cream Tea to include tea, coffee, fresh milk, scones, jam, clotted cream and butter. Many of our owners include additional items such as fresh flowers, a bottle of wine or a local newspaper which of course are discretionary.

- WCCH only act as a sole agency and therefore we do not accept properties that operate a dual booking system through owner websites/ personal advertising etc.

Whilst owner websites are welcome as additional marketing tools, ALL bookings must be channelled through the agency.Owners must be aware that the majority of policies require that the property is checked on a fortnightly basis when unoccupied.Failure to carry out these recorded inspections will invalidate the policy and claims will not be honoured.

In the event of any claim being made by a person or persons injured whilst on the premises, or as a result of the hirer being disappointed with the accommodation, or finding it not as described in the brochure, the responsibility for the claim will rest entirely with the owner of the property.

Holiday Cancellations

In the event of a cancellation due to death or illness of a member of the booked party,WCCH shall pay to the owner, the full cost of the hire charges for the period in question; minus any proportion of the original charge which would have been due for cleaning or other services. Hirers who cancel for reasons other than death or illness are legally bound  to pay for the holiday if it is not re-let; in these circumstances WCCH will endeavor to obtain payment through our cancellation insurance scheme however should this not be  forthcoming for whatever reason, it is the  responsibility of the owner to consider and implement legal action. All associated costs ill be the responsibility of the owner.

Owners Accounts

WCCH cannot undertake to expend monies on behalf of an owner unless sufficient funds are available from the owner's account.

Deposits taken at the time of booking are ‘returnable’ as opposed to ‘deductible’ from the hire charges; this money therefore remains the property of the hirer. Statements of account, which will detail all income and expenditure in respect of the property, will be forwarded to owners at the end of each quarter. The statement will include details of deductions for commission, advertising and brochure expenses. Monies will be paid to owners on a quarterly basis or at the end of the season..

Selling the Property

Should an owner decide to sell the property, WCCH must be advised as soon as possible.

Prospective purchasers may only view a property during a change-over period, or when the property is unoccupied. Obviously the completion of any purchase cannot take place until the final booking has ended.

Fees

The commission rate charged by WCCH for the management of holiday accommodation is 16% (plus VAT) of the gross hire charges received. An annual charge for advertising and brochure entry is also made. Additional fees are charged for any ancillary work undertaken on a client’s behalf outside of the general administration of bookings. Examples would include administration (full year VAT  returns) delivery of goods, building repair work, payment of utility bills (£2.50 per item) etc.

Overseas Owners

In accordance with Section 78 of the Taxes Management Act 1970, WCCH as agents may be assessed for taxes due on the lettings

of all properties owned by non- residing owners. In this instance we must therefore withhold a percentage of the net income, in accordance with current taxation levels, until such time as we have received and paid the assessment for the relevant year.

Any balance outstanding after payments of the assessment will of course be re-credited tothe owner's account, and the owner or his accountant should apply to the Inland  Revenue for any refund of tax liability that may be due. Since the introduction of self assessment, it is possible for owners to apply to have all income paid, with no deductions in lieu of tax liability. It will be necessary to ontact the Inland Revenue, in order that we can receive further instructions for payment.