Frequently Asked Questions – Some answers to frequently asked questions from landlords…
1. Who is PSL Leasing Limited?
2. What is the PSL Scheme?
3. How do the PSL Schemes work?
4. Who pays the rent?
5. Who is responsible for keeping the property in repair?
6. Who is responsible for managing the property?
7. Who is responsible for insuring the property?
8. What furniture do I need to provide?
9. If I wanted to terminate my lease early, can I do so?
10. Can PSL Leasing Limited terminate the Lease early?
11. Is there any limit to the number of properties I can bring into PSL or Choice Schemes?
12. If the property is in poor condition at the end of the lease, who will be responsible for the costs of refurbishment?
13. Who pays the Land Tax (Stamp Duty)?
14. Is it possible to avoid Land Tax?
15. What do I need to do to grant the lease to PSL Leasing Limited?
16. What are the main advantages of joining a PSL Scheme with PSL Leasing Limited?
17. Building Standards required for all PSL Leasing Limited / Council schemes
18. Landlord Documentation Requirements
Who is PSL Leasing Limited? – (Back to Top)
PSL Leasing Limited is an established organisation of private landlords specialising in providing social housing solutions to London Boroughs. Our directors and senior staff have been involved in the West London housing market for over 25 years and have developed a wide range of experiences. Our track record of excellence has led to us being invited by Ealing to work with the Council in operating its new flagship PSL Schemes. We have our own specialised housing officers, repair and building teams.
What is the PSL Scheme? – (Back to Top)
PSL stands for ‘Private Sector Leasing’ scheme. The scheme is approved between the Council and the Government.
Local and central government strategy and planning for housing is continuously being reviewed to reflect various factors, including changes in demographics, the economy and the political values of the government in power. As such, any scheme is potentially subject to alteration or for new initiatives to be introduced.
Depending on council demand, your property will be submitted to the above scheme or a similar one. For this purpose, there is an assignment clause whereby the lease can be assigned to other similar schemes should the need arise. It makes no difference as to which scheme your property is assigned as you will be paid your rent in any event until the end of the term of the lease and with the successful removal of the tenant.
How do the PSL Schemes work? – (Back to Top)
PSL Leasing Limited provides housing stock to the Council. We use our own stock and we also lease suitable properties from other landlords. Where we lease properties, we lease from you the landlord on terms which allow us to sublease the property to Ealing Council. The Council then allows a homeless family to occupy the property on a non-secure tenancy, the terms of which are governed by the Housing Act 1985. These terms allow possession to be obtained quickly from an occupier if the occupier damages the property or ceases to be entitled to be housed by the Council under its statutory obligations for the homeless. PSL Leasing Limited is contracted by Ealing to control and manage the properties provided to the Council to ensure a quality service to landlords, the Council and the occupiers alike.
Who pays the rent? – (Back to Top)
PSL Leasing Limited pays your rent because we are your tenant. The lease we take from you will usually be for a period of 3 or 5 years. We are responsible for paying your rent in accordance with the terms of the lease. The Council and the occupier are not responsible for your rent. As far as you are concerned there is no DSS/Housing Benefit participation so you will not be asked to repay any rents; should the need arise.
Who is responsible for keeping the property in repair? – (Back to Top)
During the term of the lease with PSL Leasing Limited you, as the Landlord, are responsible for complying with the Landlord’s obligations, including repairs. This is the same as if you were renting your property directly or on the private market. This is because it is a statutory requirement of the Housing Act 1985 that residential landlords are responsible for repairs. However, PSL Leasing Limited will carry out many minor repairs (‘running repairs’ *) as these arise. Where other repairs are required we will notify you. You will be given a period of time under your lease to complete repairs if you wish to undertake this task yourself. If you do not complete these repairs in time or, alternatively, would rather we carried these out for you, we will make an agreed adjustment in your rent receipt. We have our own dedicated in-house repairs and building team and our costs are therefore competitive compared to outside contractors.
* ‘Running repairs’ are things like leaking taps, loose carpets, loose bannisters, minor plumbing such as washers and minor drainage problems or toilets, doors coming off hinges, broken locks, broken guttering, jammed windows, broken glass, loose paving and so on. It is not possible to give a comprehensive list of what might be included. Instead, we limit ourselves to defining running minor repairs as those where the material cost does not exceed £25.00 plus VAT for any single repair and does not exceed £100.00 in total for any one year AND the labour element does not exceed one hour for each single repair and does not exceed 10 hours labour in any year. Note that any unused material/labour allowance cannot be carried forward to a subsequent year. If there were a long list of repairs arising on any one occasion and the total cost of these exceeded £25.00, we would then usually ask you carry out the repairs.
You should note that there is no obligation in your lease for us to carry out any running repairs at all. We carry them out at our discretion in order to make managing the properties easier for ourselves and the occupiers. Please keep in mind that although we will often carry out minor running repairs, provided they are minor, by doing this you are not absolved from your responsibilities as the Landlord for carrying out all repairs.
Who is responsible for managing the property? – (Back to Top)
PSL Leasing Limited are required by the Council under our own leases with the Council to manage the properties within the relevant scheme on the Council’s behalf. We have a dedicated mobile team which inspects properties frequently. All visits to properties check for the state of repair, any damage and that the property is occupied. We operate a 24 hours, 7 days a week service under our contract with the Council.
Who is responsible for insuring the property? – (Back to Top)
You the landlord are responsible for insuring your property. Please contact us if you would like us to recommend our insurance brokers.
Who is responsible for statutory compliance (NICEIC Electrical Inspection Certificates, Annual Gas Inspection Certificates, etc)?
You are responsible for these. We require the following certificates:
• CP14 Gas Safety certificate
• Domestic Electrical Installation Periodic Inspection Report (NICEIC)
• British Gas Homecare 200 (or above)
• Insurance Policy Certificate
• Mortgage details (if applicable)
• EPC – Energy Performance Certificate
Please note the Gas Safety Certificate and NICEIC must not be more than 3 months old when the property is seen by the council. All furnishings must comply with the Furniture Regulations 1993 (Fire) (Safety) (Amendment), Statutory Instrument 1993, Number 207. If you want to check this yourself you can obtain a copy at www.hmso.gov.uk free of charge.
What furniture do I need to provide? – (Back to Top)
Sitting room: 3 piece suite, dining table and chairs
Kitchen: cooker or oven/hob, fridge freezer, sufficient cupboard space
Bedrooms: double bed in master bedroom, 1 or 2 single beds in other bedrooms depending on size, wardrobes and chests of drawers in each bedroom.
General: appropriate floor covering in all areas, curtains/blinds and nets on all windows, lamp shades and bulbs.
All beds must have headboards and new mattresses.
We recommend landlords do not buy furniture until their property has been matched with a tenant as some tenants may have furniture of their own which they would prefer to use. All furniture must be sufficiently serviceable to last the period of the lease.
If I wanted to terminate my lease early, can I do so? – (Back to Top)
No, save where the Lease allows you to do so if there is a breach of a Tenant’s obligations and, or, non-payment of rent.
Can PSL Leasing Limited terminate the Lease early? – (Back to Top)
Legally yes but it is very unlikely we would ever wish to do so. We would only terminate in certain circumstances, for instance:
• You do not carry out your own obligations.
• The house is destroyed beyond early repair.
• The Council asks us to agree to assign their sublease to a Housing Association and that Housing Association will not agree to continue the terms of the sublease. The Council will only be able to request an assignment of the PSL/Choice sublease if there is a change in the Council’s own statutory obligation to house homeless families. Most professionals working in social housing do not think this is very likely in the next few years.
• If funding for either scheme ceased due to some factor such as a change in political policy or Ealing Council became “bankrupt”. We at PSL Leasing Limited regard this as an unlikely risk, but like most things in life, nothing is guaranteed.
Is there any limit to the number of properties I can bring into PSL or Choice Schemes? – (Back to Top)
No. There is no limit.
If the property is in poor condition at the end of the lease, who will be responsible for the costs of refurbishment? – (Back to Top)
Normally, you as a landlord would bear this cost. BUT, if the property is in a condition which is worse than fair wear and tear, taking into account the condition it was in when the lease commenced, as shown in the schedule of Condition annexed to your Lease, then we will pay you up to one month’s rent towards the costs of dilapidations. Alternatively, if the damage is due to an insured risk, you will be entitled to claim on your insurance cover.
I’d like to know the legal status of the arrangements under the PSL and Choice Schemes?
The lease granted to us by you and the sublease we grant to the Council are not business tenancies under Part 2 of the Landlord & Tenant Act 1954. They are excluded from protection under that Act, because neither we nor the Council can occupy the property. Both leases are expressly excluded from being assured tenancies of any kind by the terms of the Housing Act 1988 (as amended by the Housing Act 1996). The implication is that neither we nor the Council can claim security of tenure under statute after the term of the lease expires if you do not want to grant us a new lease.
The respective leases determine the entire obligations between you and PSL Leasing Limited and between PSL Leasing Limited and the Council. There is no direct relationship between you and the Council or the occupiers. The occupiers of the property occupy on a weekly and temporary basis only under Non Secure Tenancy Agreements controlled by statute. They have no security of tenure as a result.
This means when the lease expires, you are entitled to vacant possession of your property from us and, in every case, we will aim to do this unless you wish to renew the lease for a further term. We have no right to a new lease but we may ask you to consider a new one in the 9 months before the lease expires. Remember, however, that if you want to have your property returned to you before the end of the lease, you will not be able to do this except in the unlikely event that we have failed to pay you your rents as they fall due.
It remains unlawful to seek possession of any occupied property without a court order. You will be entitled to receive rent and/or mesne profits equal to the rent in the unlikely event that your property remains occupied at the expiration of the lease. We, not the Council, will be responsible for paying you if this happens.
Do I have to pay any legal costs in relation to the Lease of my property?
No. You do not have to pay any legal costs associated with you granting a lease to us. While we cover all of these, please note that we do not cover any costs you may incur in seeking your own advice from a solicitor or any costs that might be charged by your mortgage lender for consenting to the lease. (Most lenders do not, in fact, charge for this).
‘Legal costs’ do not however include any Stamp Duty, now known as Land Tax. In some cases your lease with us will attract Land Tax.
No account is taken of the provision in the lease for rent reviews by RPI indexing. Our legal team will be touch with you to tell you how much duty is payable.
Who pays the Land Tax (Stamp Duty)? – (Back to Top)
If Land Tax is due in relation to the lease that you grant to PSL Leasing Limited, you will pay the principal tax as calculated and we will pay the duty due on the Counterpart.
Land Tax can only be paid by having the relevant documents stamped by the Stamp Duty Office of the Inland Revenue. (Longer leases may require registration at the Land Registry.) We will send leases in bulk for stamping through our legal team who will be responsible for settling the duty. We will pay the duty due from you on your behalf and later deduct this from your rent.
Is it possible to avoid Land Tax? – (Back to Top)
The only truthful answer is No.
If any Housing Supplier tells you that you can avoid Land Tax you should have nothing to do with them.
What do I need to do to grant the lease to PSL Leasing Limited? – (Back to Top)
Once we have seen your property and have agreed terms, we will send you two copies of a draft lease relating to your property. Please keep both these leases in a safe place and do not sign them until requested by our legal team. Please remember that the terms are not negotiable because they are governed by the Ealing PSL Schemes operated by the Council.
You are at liberty to engage a solicitor at your expense if you wish, but please be assured that the formalities of completing your lease to us are in fact quite straightforward.
When we are ready to take a lease from you a member of our lettings or legal team will telephone you. He or she will ask you to confirm your identity and then take you through the lease and confirm with you the relevant details.
Once these have been confirmed with you, you will be asked to fill in these details on the two copies of the lease we have sent to you. Please sign these when requested and initial the insertions you have made. Then have your signature witnessed where shown at the end of the lease and ask your witness to put his or her initials next to your initials where you have filled in the first two pages of the lease. Once you have done this, send both leases to us so we can complete formalities such as stamping. On completion of the formalities, we will return one of the signed copies to you for your records.
We will only be able to make your property available to the council schemes if you have carried out any required pre-letting repairs and given us your Gas, EPC and NICEIC certificates and insurance details and your mortgage lender’s consent (if you have a mortgage) has been confirmed to you.
IMPORTANT :
-Please note, the occupiers will sign in advance their Non Secured Tenancy Agreement (NSTA) with Ealing Council in advance of occupation of the property.
-In order to ensure certainty and avoid undue inconvenience we will ask that you release your keys, certificates, signed management agreement and management fee in advance to PSL Leasing Limited and prior to any occupation of your property. Your property will not be made available to any Scheme unless keys, etc., are released to us in advance. Your parting with possession of keys, etc., to PSL Leasing Limited will be deemed to be your irrevocable permission for us to lease your property to Ealing pursuant to their Schemes. If for any reason you withdraw your consent subsequent to parting with possession of the keys, etc., and prior to occupation by an Ealing NSTA occupant you will be deemed liable for all consequential losses.
- Although we will ask you to release your keys in advance we will not physically hand them over to Ealing’s NSTA occupant until we are satisfied that they have completed all the necessary formalities and that payment of rent will be forthcoming from Ealing and/or the NSTA occupant.
Monday will be the Rent Commencement Date. We will post a cheque or, where possible, make a bank account transfer payment for your first month’s rent within 2 months of receiving your signed leases from you. All future payments will be two months in arrears and will be by Standing Order to your nominated Bank Account.
As part of our security and fraud control protocols, we cannot send our cheque without the signed leases in our possession. Please make sure that you post the leases as soon as you have signed them and had it witnessed as indicated above.
What are the main advantages of joining a PSL Scheme with PSL Leasing Limited? – (Back to Top)
- Solid Rent Guarantee: Unlike the private sector renting market, your rent receipts are absolutely guaranteed and paid in arrears directly to your bank account. There is no DSS/Housing Benefit involvement either as far as you are concerned. You get the agreed rent every month in arrears.
- Continuity of Rent Receipts : You will get your Rent every month in arrears whether the property is occupied or not. By comparison most short term private lets are empty and hence not receiving any rent for a considerable time every year.
- No Tenant claims : We are insured for claims from occupiers. You will still need to have sufficient insurance cover for yourself but claims are more likely to be made against us. We are required under our contracts with the Council to carry separate insurance for such claims.
- Reliable on-site inspection and management : There is no need for you to continually check your property yourself. Under our Council contracts, we are specifically required to visit your property at regular intervals.
- No commission : We are not agents so we do not charge you commission or VAT. We are your tenants and we will pay you your rent in accordance with the lease.
- Reliable tenants : PSL Leasing Limited is proud of its reputation as a specialist operator in the social housing sector. Our performance is monitored by the Council with whom we work closely on a daily basis under the PSL Schemes.
- Easier life for you: With the PSL scheme operated between PSL Leasing Limited and the Council of the London Borough of Ealing you do not have to worry about things such as:
• estate agents/lettings commission
• potential loss of rent,
• possible Court and Bailiff action to evict tenants
• possible Court and Bailiff action to collect unpaid rents,
• disputes with Housing Benefit over rental reclaims
• simply looking after your investment in the property.
- Rent increases: Raising private sector rents can be difficult and the risk of the tenant defaulting or leaving without paying the rent due can be high. We offer, in the case of leases over 3 years in term, an RPI Indexed rent increase at the end of every 3, 6 or 9 years of a Lease.
- Rest assured: PSL Leasing Limited and all its staff are fully committed to having a long and happy working relationship with you.
- Support : We have 24 hour support for our tenants in the event of any emergency.
If you have any other questions please phone us on
020 8742 7858
IMPORTANT: This document is for guidance only. It does not form any part of any contractual relationship or lease between you and us and all liability for error or otherwise is expressly disclaimed. Please note that all invoices regarding services provided irrespective of the Ealing Scheme and PSL Leasing Limited company involved will always be issued by and be payable to PSL Leasing Limited.
Building Standards required for all PSL Leasing Limited / Council schemes – (Back to Top)
The London Borough of Ealing has particular requirements for properties on there PSL schemes. The following is a list of observations we have made over time. Ensuring your property meets these requirements will speed along the council’s ability to enter your property into one of the schemes. This is an assisting guide only. The council’s requirements may change without notice.
Kitchen – (Back to Top)
The kitchen should have adequate preparation surfaces with a good mixture or base and wall storage dependant on the size of the property. Worktop surfaces must be a minimum of 30m thick Formica faced constitution board with a rolled top edge. Tiled splash backs to a minimum height of 300mm must be provided to all walls abutting the worktops, sink unit and cooker.
All kitchens must be provided with a durable and impervious floor covering which is also easily cleanable (eg. correctly fitted heavy-gauge sheet vinyl, vinyl floor tiles or ceramic floor tiles).
At least two unengaged double switched sockets must be provided over the working area. Such sockets must be safely located at least one metre from the taps of the sink unit. An adequate number of low level sockets must be provided for appliances such as fridge/freezer and washing machine.
Kitchens should have an open able window and mechanical extract ventilation. If there is not an open able window must be provided with a powered extract fan capable of providing at least four air changes per hour (subject to Council approval). This unit must also be wired to the lighting circuit of the kitchen and be provided with an over-run of fifteen minutes.
All internal doors to and from the kitchen must be 30 minute fire resistant doors fitted with a Perko self closer and housed within an acceptable door frame with adequate fire stops.
No bedrooms should open directly from the kitchen or kitchen/diner. The main entrance to the house / flat must not be through the kitchen.
Plumbing and drainage must be provided for a washing machine (though a washing machine is not required).
Bathrooms and Water Closet compartments
Bathrooms should be, preferably, fully tiled or be provided with a minimum or 450mm of tiled splash back to the bath and wash hand basin. All abutments between the walls and bath / wash hand basin to be sealed and properly stuck with waterproof silicone sealant.
All grouting and sealants must be free from mould growths.
The bath / shower tray water closet pan must be sound, clean free of hard water scale and in proper working order with easily operable taps and flush mechanisms.
Bath panels should be removable but securely fixed at other times.
The floor of the bathroom and water closet compartment must be provided with a properly fitted impervious and easily cleanable floor covering such as heavy duty vinyl sealed around the edges.
All bathrooms and water closet compartments must have a ventilation rate of at least three air changes per hour. An electrically powered extractor with 15 minute over-run fitted to the lighting circuit is required.
If boilers are installed in bathrooms they must be housed in protective fire resistant enclosures and positioned so as not to interfere with the safe use of the facilities. Besides the boiler thermostat; all other heating water controlling switches, programmers etc, should be located outside the bathroom.
A vanity lock should be fitted to the door.
The light fitting must be a sealed unit.
NB Small-bore waste macerators such as ‘Saniflow’ are not accepted.
Fire Safety – (Back to Top)
Electrically hard wired mains powered with battery backup smoke detectors are required in the hall, each landing and lounge. These should be interconnected for 3 storey properties.
Doors – (Back to Top)
You must provide a letterbox and street and flat numbers on communal and on main doors. Door knockers, doorbells or entry-phone systems must be provided for all dwellings. All properties above ground floor must be fitted with a doorbell or entry-phone and those above first floor must be fitted with an entry-phone.
All exit doors must be fitted with a Thumb release lock so as exit can be made in an emergency without the need for a key.
The only type of glazing for internal doors that is permitted is 6mm Georgian wired glass.
Patio doors or French doors are not permitted in bedrooms unless there is an extra window that can be opened for ventilation.
Windows – (Back to Top)
All windows must be in good working order and free from decay. The glazed area of the windows to habitable rooms must equate to a minimum of 1/10 of the allowable floor area for that room. The open able areas of the window must equate to a minimum of 1/20 of the room to provide adequate ventilation.
The effective sill height on open able windows must be at least 1100mm (see section on child safety).
You must provide easily open able window locks to all ground and basement windows.
Louver windows are not acceptable.
Stairways – (Back to Top)
Balusters on the stairway and landing should have a maximum spacing of 100mm.
Walls and Ceilings – (Back to Top)
All walls and ceilings must be structurally sound and free from cracking un-keyed plaster. The surfaces must be clean and all decorative finishes must be in good repair.
Polystyrene ceiling tiles or covings are not acceptable.
Suspended ceilings are not acceptable.
Fireplaces – (Back to Top)
All open fireplaces must be blocked up and adequate perma-vents fitted to prevent internal condensation.
No gas fires are accepted.
Decoration – (Back to Top)
It is recommended that vinyl silk washable emulsion is used for walls where possible. Joinery and metal work must be painted with a gloss finish or with an approved stain membrane.
External Walls and Windows – (Back to Top)
External decor must be sound with no flaking paintwork.
Parapet wall must be in good condition with copings, flashings and fillets as required to prevent penetrating dampness.
All brickwork must be sound and chimney stacks must be in good repair with the chimney pots securely fixed.
Roofs, Gutters and Drains – (Back to Top)
All must be in good repair and free from leaks. Adequate over-flow must exist to ensure all moisture is removed from the roof as quickly as possible.
Outbuilding – (Back to Top)
All outbuildings should be of sound construction and any single glazed windows boarded from both sides.
Greenhouse or lean-tos are not acceptable.
Gardens – (Back to Top)
All gardens must be free from debris and weed growth. Ponds must be in-filled. All patios, pathways and other concreted areas must be level and in good repair. They should be at the same level as the surrounding area, minimum 150mm below the damp proof course with adequate fall away from the house.
Boundaries – (Back to Top)
All boundary walls must be in good order and a minimum height of 1 meter. Side access gates must be in good order and fitted with top and bottom latching bolts.
Boundaries to railway tracks, canals, rivers and other dangerous area must have at least a 2 meter secure fence.
Gas, Water and Electricity – (Back to Top)
There must be an exclusive supply of gas, electricity and water for each property.
This includes isolation points with stop cocks located within each property.
All gas and electricity must be separately metered and clearly labelled.
If night storage heaters are installed the circuit must be wired for Economy 7 or 9 usage and you must arrange for the installation of the correct meter.
You must put permanent vents to a minimum size of 227mm x 227mm to rooms that contain gas boilers.
Heating Systems – (Back to Top)
You must provide each property with a space heating and hot water system.
There must be an adequate radiator or night storage heater in every room.
The heating system must be either gas central heating or night storage heaters.
The only exceptions are that an approved bathroom fan heater can be used in bathrooms and water closets provided it is fitted by a qualified electrician.
All radiator valves should be in good working order.
You must fit all water cylinders with insulation jackets. Tanks situated in loft spaces should be insulated along with associated pipe work.
Electrical
The property should be inspected within the last 3 months prior to the start of a new contract by a NAPIT or NICEIC approved electrician who can provide a 16th edition or equivalent certificate. (See Required Certificates)
A valid certificate should be in place at all times.
The minimum number of electrical sockets is as follows:
Bedroom: one double socket
Lounge: two double sockets
Dining: one double socket
All rooms must have a lighting pendant or similar fitted with the appropriate lamp shade.
Fluorescent tubes are only acceptable in kitchens.
Child Safety – (Back to Top)
Child safety requires awareness of the risks and falls by low windows, balconies and balustrades.
Low windows, where the sill height is less than 1100mm from the floor level, should be guarded and access restricted.
Accessible balconies and roofs should be guarded.
In the case of habitable rooms; windows will need to provide adequate ventilation and thus physical guards should be used rather than window blocks. Guards should be constructed of robust material and vertical bars should be a maximum of 100mm apart.
All casement and sash windows (not fanlight) above ground floor level should be fitted with adult only opening window restrictors allowing the window to be opened 100mm by a child but allowing an adult to fully open the window in case of fire.
Landlord Documentation Requirements – (Back to Top)
After an PSL Leasing Limited representative has been out to the property to conduct a basic inspection they will be able to notify you, within a couple of days, of whether we will be able to manage your property on a London Borough of Ealing lease scheme.
Before we are able to submit your property to the London Borough of Ealing we need to ensure ALL your documentation is correct and up to date.
Any delay in providing the documentation will cause delays in allocating tenants to your property. This must be done as soon as possible.
You must provide us with the following documentation as soon as possible. This documentation must not be more than three (3) months old:
• CORGI Certificate
• British Gas Home Care Agreement
• NICEIC Certificate
• Building Insurance Agreement
After you have completed the management agreement form and provided us with our certificate fee we will arrange to have the following documents provided for your property:
• EPC – Energy Performance Certificate
• Surveyor’s Report
• Land Registration Certificate
It is very important this documentation, and your sets of keys, is provided to PSL Leasing Limited as quickly as possible. We are then able to display the property to the London Borough of Ealing and arrange to have someone move into your property.
If you have any questions regarding this documentation please ensure to ask your property inspector as soon as possible.
