SOLE LETTING RIGHTS
1.1. By appointing the Agent the Landlord agrees that the Agent will have sole letting rights to market the property for a period of four weeks. This means that you will be liable to pay Commission to the Agent, in addition to any other costs or charges agreed, if at any time, unconditional contracts for the letting of the property have been exchanged: 1.2. It is important to note that if you instruct another agent to act as well as us, the Landlord will have to pay the Commission due under this Agreement to us regardless of whether or not you also owe a fee to the other agent.
with a tenant introduced by the Agent during the period of sole agency; or
with a tenant with whom the Agent had negotiations about the property during that period; or
with a tenant introduced by another agent or any other person, including the Landlord, during that period.
2. A TENANT FINDING/ INTRODUCTION ONLY SERVICE 2.1. To recommend and agree with the Landlord the achievable market rent to be sought.
2.2. To promote the property and seek a suitable Tenant through local advertising, our website or any other method deemed suitable by the Agent.
2.3. To arrange viewing of the property and to accompany any applicants unless previously agreed with the Landlord that he will show the property.
2.4. To receive a set of keys from the Landlord to enable viewings to take place.
2.5. To provide a draft copy of the Tenancy Agreement to the prospective tenant and advise them to take independent legal advice upon the contents.
2.6. To inform the Landlord of any intending Tenant.
2.7. To take up references on each intending Tenant through a Credit Reference Agency (CRA) who have advised us that they try to take up references from the employer, the previous landlord and a personal reference for character. The CRA also check the credit rating of the applicant. If the CRA are unable to take up references the Agent will assess the suitability of the intending tenant, including any Guarantor, after discussing the matter with the Landlord. The final decision as to the suitability of the tenant will be made by the Landlord.
2.8. To prepare a Tenancy Agreement according to the relevant Housing Act 1988 or other legislation, including any renewal or extension of the Tenancy. The majority of tenancy agreements are Assured Shorthold Tenancies, first introduced by the Housing Act 1988. There are however occasions where other forms of tenancy agreements are appropriate, we will advise which is correct for you. When the tenant is an individual the tenancy agreement has to comply with the Unfair Terms in Consumer Contract Regulations 1999 and guidelines prepared by the Office of Fair Trading which states that any clause in a contract which is unfair to the tenant could be void. These regulations have been taken into account in drafting our contracts.
2.9. Assured Shorthold
2.10. Common Law
2.12. To co-ordinate the signing of the Tenancy Agreement by the Landlord and the prospective tenant.
2.13. Unless instructed otherwise the Agent will use a tenancy agreement drafted and approved by the Agent. Should the Landlord instruct the Agent to use The Landlord’s own tenancy agreement fees will not be reduced.
If the applicant is an individual and the net rent is £25,000 per year or less we will use an Assured Shorthold Tenancy Agreement. There is no longer a minimum period for such lettings. However, if the Tenant fails to surrender possession at the expiry of the term according to a Section 21 Notice a possession order will be needed. No order can expire within the first 6 months of a Tenancy commencing.
If the net rent payable is more than £25,000 per year or at a proportionate level for a shorter tenancy, or the tenancy is to a company the Tenancy Agreement cannot be an Assured Shorthold. You will need to use a Common Law Agreement. There are no rent restrictions. Although this is not governed by the Housing Act 1988 it is subject to other statutory regulation such as the Protection from Eviction Act 1977 which means you must obtain a possession order from the County Court before a tenant can be evicted.
Tenancy agreements can be for a fixed duration, run from month to month (i.e. a periodic tenancy), or be a combination of the two. A fixed term contract will give more certainty, whilst the periodic tenancy will give greater flexibility. April 2014
2.14. The Agent cannot advise on the legal technicalities of another agreement. The Landlord should therefore consult a solicitor to check its suitability before a tenancy commences.
2.15. If the tenancy agreement is not the standard agreement of the Agent but is the standard document of the tenant and the tenant has requested it be used the Agent cannot advise upon the content. The Landlord should seek advice from his solicitor as to the contents before deciding whether to agree to accept it for the duration of the tenancy.
2.16. Any changes to the Agent’s standard tenancy agreement requested by the Landlord or his solicitor will incur additional charges which are listed in the Schedule of Fees.
2.17. To organise the preparation of a detailed Inventory and/or Schedule of Condition (See Schedule of Fees). All Landlords should be aware that if there is no Inventory for the property the Landlord will not be able to obtain compensation for any damage at the end of the tenancy.;
2.18. To obtain from the Tenant by cleared funds the rent for the first month, together with a Tenancy Bond, on or before the first day of the tenancy, and before possession is given to the Tenant. The Tenancy Bond is kept throughout the tenancy by either the Landlord or the Agent (Cross out the person who will not be holding the deposit) under the protection of a deposit scheme and is used at the end of the tenancy for compensation to the Landlord for damage and any other breach of the tenancy. If the Agent holds the Bond it will be held subject to the conditions specified under clauses 9.2 to 9.16 of the Agreement.
2.19. To arrange for the Tenant to take up possession.
2.20. To notify the relevant authorities and utilities of the change of occupant provided the name address and account number of the supplier has been given to the Agent. The Landlord should be aware that some suppliers will not take instructions from a third party so the Landlord may have to arrange transfer.
2.21. To account to the Landlord for the rent for the relevant period minus any agreed fees. The Landlord is responsible for collecting subsequent rental payments from the Tenant. However, the Agent will assist where possible with the setting up of a suitable arrangement between the Landlord and Tenant.
2.22. If the Landlord decides to hold the Bond, we will transfer it to you within 5 days of receiving it. The Landlord must then register it with another Tenancy Deposit Protection Scheme within a further 9 days if the Tenancy is an Assured Shorthold Tenancy. If you fail to do so the Tenant can take legal action against the Landlord in the County Court. The Court will make an order stating that the Landlord must pay the Bond back to the Tenant or lodge it with the custodial scheme which is known as the Deposit Protection Scheme. In addition a further order will be made requiring the Landlord to pay compensation to the Tenant of an amount equal to three times the Bond. The Landlord will be unable to serve a Section 21 Notice on the Tenant until compliance with the above conditions and the Court will not grant the Landlord a possession order. We have no liability for any loss suffered if the Landlord fails to comply.
2.23. Upon written request of the Landlord and subject to the Schedule of Fees to serve a Notice on the tenant terminating the tenancy. The Landlord must give the Agent notice of this intention at least ten weeks prior to the end of the tenancy. If we are not managing the property notice is not served on the Landlord’s behalf.
3. FULL MANAGEMENT SERVICE
In addition to the Tenant Finding and Rent Collection Services (but not 2.22): April 2014
3.1. To hold the Tenancy Bond according to the terms of the tenancy agreement and The Dispute Service (“DPS”). The Agent will hold the Deposit in a stakeholder capacity, which means we will be unable to release these monies or any part of them to you or the Tenant without the other parties written consent. At the end of the Tenancy the Agent will to send to the Landlord the amount agreed between the parties for damage, cleaning, unpaid bills, or unpaid rent and pay the balance if any to the Tenant.
3.2. If the amount of compensation you seek exceeds the amount held as the Deposit, you may require the Tenant to pay that additional sum within 14 days of the Tenant receiving that demand in writing.
3.3. If the damage and other charges are not agreed between you and the Tenant after the end of the Tenancy the Landlord and the Tenant will submit the dispute to TDS. The damages and cleaning will not be paid for by the Tenant unless they have admitted liability and agreed compensation. The Agent will pass the Bond or any disputed part of it to DPS until that dispute is resolved.
3.4. During any tenancy, to take any reasonable action against the Tenant to enforce the Tenant’s obligations under the Tenancy Agreement sending relevant letters as detailed at clause 4.3. The Agent will not be responsible for taking or paying for any legal action on behalf of the Landlord.
3.5. To organise, and where necessary to supervise, minor routine repairs, each to a value not exceeding two weeks’ rent.
3.6. To retain a balance equivalent to two weeks’ rent in the Landlord’s account towards any repairs for the duration of the tenancy. This sum will be topped up from the monthly rent so that it remains at the agreed figure.
3.7. To inform and take the Landlord’s instructions on repairs of a major or more serious nature above the sum agreed at clause 4.6, unless emergency repairs are necessary to prevent an escalation of damage to the property, to the health and safety of the Tenant or to enable the Landlord to comply with his statutory obligations.. Wherever possible such emergency works shall be limited to £500, although the Agent reserves the right to spend a larger sum if circumstances dictate it necessary.
3.8. To visit the property during the fourth and approximately every sixth month thereafter of the tenancy, subject to access not being denied by the Tenant, in order to appraise the general condition of the property. A written report of the findings will be sent to the Landlord and the Tenant. The landlord will be advised of any remedial action required. It is the responsibility of the landlord to advise the Agent in writing of any further action to be taken. The Agent is not liable for any loss or damage sustained to the property or to the landlord if the Landlord fails to provide instructions within a reasonable time unless the loss or damage is due to the breach of contract or negligence of the Agent. Any visit can only pin point obvious visual defects and will not be an expert investigation or structural survey of the property nor a check of the Inventory. The Agent cannot accept responsibility for hidden or latent defects.
3.9. Upon written request of the Landlord to serve the Tenant a Notice to give up possession at the end of the agreed Tenancy Term or any extension of it in due time and in the correct legal format.
3.10. At the end of a Tenancy to do the following: 3.10.1. Arrange to check the Tenant out of the property.
3.10.2. Check the property in the presence of the tenant if possible to assess the overall condition of the property giving due allowance for fair wear and tear.
3.10.3. Upon consent from the Landlord and the Tenant to account to the departing tenant for the Tenancy Bond, making such deductions as are deemed to be chargeable to and agreed by the Tenant in writing to reinstate the property to a reasonable condition and/or to replace damaged or missing items.
Deductions may also be made to meet the cost of any unfulfilled obligations of the Tenant. If we hold the Bond any deductions will be subject to compliance with clauses 9.2 to 9.16 below.
3.10.4. When the Tenancy Bond is insufficient to meet in full any payments due from the departing Tenant, to write to the Tenant demanding the balance within fourteen days of receipt of the demand. If the Tenant fails to pay it will be the responsibility of the Landlord to take any legal action necessary to obtain the necessary compensation.
3.11. Seek a new Tenant at a rent agreed with the Landlord.
3.12. No tenancy will enter a periodic term, in which tenancies will be renewed after the fixed term and a cost of £35.00 (six month tenancy renewal) £55.00 (twelve months and above tenancy renewal) will be deducted or paid direct from the landlord
3.13. FIXED TERM OF 18 MONTHS MINIMUM FOR ALL MANAGED SERVICES
4. TENANCY RENEWAL SERVICE 4.1. Ask the Landlord approximately three months before the expiry of the fixed term for any renewal instructions. We do not serve notice on the tenant unless instructed in writing to do so as detailed in clause 2.23 above.
4.2. Review the rent and advise the Landlord if a rent increase is possible depending upon current market demands.
4.3. Once written confirmation has been received from the Landlord that the tenancy should be renewed the Agent will write to the tenant asking if they wish to renew the tenancy and advising of any rent increase.
4.4. Negotiate between the two parties
4.5. Try on the Landlord’s behalf to obtain the optimum rent.
4.6. Prepare the extension document for both parties.
4.7. Draft and include any clauses agreed between the parties varying the terms of the original tenancy.
4.8. Arrange for the extension documents to be signed by the two parties.
4.9. If the fixed period is renewed ensure both parties sign the documentation by the start date of the new period of the tenancy.
4.10. If 5.9. above applies, send the signed documents received by us to the relevant party. The Landlord receives the copy signed by the tenant and the tenant receives the copy signed by the Landlord.
Towards the end of the initial fixed term the Agent will contact the Landlord to find out if the tenancy should be renewed. If instructed to do so the Agent will carry out some of the following:
5. LANDLORD’S RESPONSIBILITIES 5.1. To inform and obtain prior consent in writing from any mortgagee, freeholder or superior landlord that the property may be let. Any conditions to be included in the tenancy agreement required by these parties must be given to the Agent prior to the tenancy commencing. This includes providing the relevant sections of the Head Lease that need to form part of the tenancy agreement. If these obligations are not included in the tenancy agreement the landlord cannot enforce them on the Tenant. Extra conditions cannot be inserted after the tenancy commences. If you wish the Agent to try to obtain the mortgagee’s or superior landlord’s written consent there will be an additional charge as shown in the Schedule of Fees in addition to any fees due to the mortgagee.
5.2. To inform the Buildings and Contents Insurers that the property is to be let, and to maintain such policies in force throughout the tenancy. The Landlord should be aware that if the insurer has not granted consent to the tenancy any claim may be void. This could result in considerable losses for a Landlord.
5.3. To provide the Agent with any conditions of the insurer relating to the property including any special provisions for vacant periods. If these conditions are not attached to the tenancy agreement they will not apply to the tenant. Conditions cannot be enforced at a later date.
5.4. Before any Tenancy is granted to bring the property up to a suitable standard of condition for the purposes of letting according to the requirements of the Local Authority, Environmental Health Department, or any other current legislation. The Agent will try to advise the Landlord when taking the instruction of any new legislation which may be pending and which may affect a tenancy.
5.5. The Landlord has a statutory responsibility Sections 11 to 16 of the Landlord and Tenant Act 1985 state that you must:
5.6. By signing and returning this Agreement you give us authority to organise and where necessary supervise minor repairs / routine works to comply with the above,
5.7. To ensure the property, and any contents, fixtures and fittings supplied with it, comply with current safety Regulations as follows:
5.8. Furniture and Furnishings (Fire)(Safety) Regulations 1988 (as amended). Legislation is very strict, all upholstered furniture that is beds including padded bases, padded headboards, sofas, upholstered chairs, pillows, cushions, furniture normally used in the garden and children’s furniture must comply with current safety standards and carry permanent labels to that effect. It is strongly recommended that the Landlord purchases new items from recognised suppliers. Any items subject to fire safety standards manufactured between 1950 and 1990 will need to be removed or replaced as they usually do not conform to current safety standards. Furniture manufactured prior to 1950 may comply as toxic foam filling was not used at that time. However if it has been re-upholstered it must comply with current Regulations. Legislation is contained in The Furniture and Furnishing (Fire) (Safety) Regulations 19898 as amended in 1989 and 1993. Failure to comply with the Regulations can lead to criminal proceedings, which can lead to a fine of up to £5,000 and/or 6 months imprisonment. If there was a fire at the property leading to injury or death of a tenant the penalty could be severe and would not be covered by any contents insurance policy. By signing this Agreement the Landlord gives the Agent authority to remove and dispose of any item that the Agent does not think complies with current Regulations at the Landlord’s expense and if necessary replace it with compliant furniture. The Agent is not responsible for checking the compliance of all furniture and has no responsibility if any non complaint items of which the Agent is unaware are left at the property. If the Agent needs to arrange a check of the furniture on behalf of the Landlord to ensure compliance with the above Regulations an administration charge as shown in the Schedule of Fees will be payable.
5.9. Smoke Alarms. There is no legal requirement to install smoke alarms in a property unless it was newly built from 1992 onwards or it is a House in Multiple Occupation when the alarms must be wired into the mains electricity system with a battery back up. If the Landlord has installed any type of smoke alarms, fire extinguisher, or fire blankets in the property they must be regularly checked to ensure they are in working
- (a) keep the structure (including the drains, gutters and down pipes) and the exterior of the Property in good order and repair);
- (b) keep the appliances for supply of gas, electricity and water in good repair;
- (c) keep the appliances for supply of space heating and water heating in repair; and
- (d) keep the sanitary appliances in repair.
order. In particular the Landlord must ensure they are tested prior to the start of a tenancy and be noted as in working order. Failure to do so could mean liability for any injury suffered by a tenant or other visitor to the property. By signing this Agreement the Landlord gives the Agent authority to replace any item that the Agent believes is not in working order at the Landlord’s expense. The Agent is not responsible for checking the working order of all smoke alarms and has no responsibility if any non working alarms of which the Agent is unaware are left at the property. If the Agent needs to arrange a check of the smoke alarms at the start of a Tenancy on behalf of the Landlord to ensure compliance with the above Regulations or to check that the alarms are in working order an administration charge as shown in the Schedule of Fees will be payable
5.10. Gas Safety (Installation & Use) Regulations 1998. All gas equipment, pipe-work, installations and appliances must be safe. It is a legal necessity for them to be checked annually for safety by a Corgi registered installer who will then issue a Gas Safety Record (GSR) and records maintained of work undertaken. A copy of the GSR must be given to the tenant at the start of the tenancy when moving into the property and annually thereafter. The Landlord should keep a copy. The Agent must have a copy for the property file. Failure to comply will mean prosecution and a fine of up to £5000 and/or six months in prison. If the tenant was injured or killed due to carbon monoxide poisoning the penalties are severe. A tenancy cannot commence unless the Agent is in receipt of a current GSR. If one is not provided three days prior to the start of a tenancy the Agent reserves the right to have a safety check carried out at the Landlord’s expense with the costs being deducted from the initial rental payment. If the Landlord uses his own contractor to carry out the safety check the Agent will need to see a copy of his CORGI registration and public liability insurance before the Agent can accept the GSR. If the Agent needs to arrange a safety check and the issue of a GSR at the start of a Tenancy or when the GSR is due for renewal on behalf of the Landlord to ensure compliance with the above Regulations an administration charge as shown in the Schedule of Fees will be payable.
5.11. The Electrical Equipment (Safety) Regulations 1994 There is not a specific requirement in the Regulations for an annual electrical safety check. However all electrical equipment and wiring systems must be safe. Prior to letting the property it should be checked by a recognised electrical engineer and should then be checked on an annual basis. All new electrical appliances must carry a >CE= mark and have instructions booklets or clear working instructions provided. An appliance is not safe if there are no operating instructions and must be removed from the property. The Agent reserves the right to remove any appliances that the Agent believes do not comply with current Regulations, dispose of them and if necessary replace them with complaint items at the Landlord’s expense. The Agent is not responsible for checking the compliance of all electrical appliances and has no responsibility if any non complaint items of which the Agent is unaware are left at the property. If the Agent needs to arrange a safety check of a Tenancy on behalf of the Landlord to ensure compliance with the above Regulations and the Regulations noted below an administration charge as shown in the Schedule of Fees will be payable.
5.12. Part P Building Regulations (Electrical Safety in Dwellings) 2005. These Regulations became law on January 1 2005 and state that any person having certain types of hard wiring work carried out at a property must use a contractor who is part of an approved scheme. Any other person carrying out such work must obtain
All plugs and sockets must comply with the Plug and Socket etc. Regulations 1994 which means all plugs must have a safety sheath and all sockets should be flush to the wall with an on/off switch. April 2014
consent from the building inspector prior to starting the job and have the finished work inspected and approved by the inspector. All electrical contractors carrying out work instructed by the Agent on behalf of the Landlord while the Agent is managing the property will be members of an approved scheme. The Agent can only use the Landlord’s preferred contractor if proof is provided that the contractor is a member of an approved scheme, has current public liability insurance and is easily available.
5.13. To inform all service providers (telephone, gas, electric etc.) if the Agent is unable to do so that the Landlord is not in residence. and to arrange for any permanent or temporary disconnection of a service to a property.
5.14. To keep the Agent reimbursed for any claim damage or liability whether criminal or civil suffered from and during the time that the Agent is or was acting on the Landlord’s behalf. To avoid doubt the Agent reserves the right to have work carried out on the Landlord’s behalf and to charge for that work to ensure that the Landlord fulfills all contractual and statutory obligations.
5.15. It is not part of our normal function to forward the Landlord’s mail. Therefore no responsibility can be taken for mail sent to the Landlord at the property. It is recommended that arrangements are made for it to be redirected by the Post Office.
5.16. To provide the property to a professionally clean standard. If the Agent is asked to arrange for the cleaning there will be an administration charge as shown in the Schedule of Fees in addition to the cleaning charge.
5.17. To provide the Agent with one set of keys for each tenant and an extra set if the Agent is managing the property at least three days prior to a tenancy commencing. If the Landlord fails to do so the Agent will have sufficient sets cut at the Landlord’s expense. In addition an administration fee will be payable as noted in the Schedule of Fees.
5.18. To ensure the property is in a safe condition prior to letting. The Landlord cannot contract out of any liability for death or injury.
5.19. Housing Act 2004: The Housing Act 2004 covers differing legislation which are being enforced on different dates. The regulations in the Act concerning houses in multiple occupation (“HMOs”) became law on April 6 2006 and became enforceable as from July 2006. There is a general wide definition of an HMO in the regulations which state that the following are HMOs:
5.20. HMOs like all private dwellings must comply with the Housing Health and Safety Rating System (“HHSRS”) which is the new statistical means of measuring hazards and risk of injury at a property. This system applies to all properties but those falling into the above category are subject to inspection by the environmental health officer. The responsibility for ensuring premises comply is that of the Landlord. If we the Agent accept an instruction to let premises and subsequently an order is
- Student accommodation during term time;
- Properties inhabited by 3 or more people who are not a household and share kitchen and bathroom facilities. A household is defined as parents, grandparents, children, aunts, uncles and cousins.
- A building converted into flats pre June 1992 which does not comply with the Building Regulations 1991, has not been subsequently up-dated to the relevant fire safety standard and where a third or more of the properties are rented on short term tenancies.
The landlord may not have to carry out any action to ensure compliance apart from ensuring that a Notice is clearly displayed in the property stating who will be managing during the Tenancy. If we are not managing the property it is the responsibility of the landlord to ensure a Notice is displayed. We have no liability if you fail to do so. April 2014
served to comply with the HHSRS if we the Agent incur any costs for compliance due to an order being served upon us you the Landlord agrees to reimburse us within 14 days of written demand or agreeing by signing this Agreement that the costs may be deducted from the rent received.
5.21. Mandatory Licensing: Under the Housing Act 2004 landlords of certain properties where individuals are living as more than one household will need to be licensed by their local authority. If we believe that your property falls into this category we will inform you of this fact and of the alterations that we have been informed by the local authority may be required to allow you to gain a licence for your property. If your Premises potentially require a licence you will either need to obtain a license from the relevant Local Authority or we will only be able to let your Premises to a single family group.
5.22. Discretionary Licensing: Local authorities can enforce discretionary licensing. We will advise you of any regulations of which we have been made aware but it is the responsibility of the Landlord to check whether the Premises are subject to discretionary licensing and if so to apply and pay for the licence. We will only offer the Premises for let when we are in receipt of the licence or the certificate proving that the Landlord has applied for one.
The Premises will require a licence if it falls into the following definition. If the Premises are 3 stories or more and has five or more occupiers who do not form one household and share kitchen or bathroom facilities it is subject to mandatory licensing. It is the responsibility of you the Landlord to apply and pay for the licence. We will only offer Premises for let when we are in receipt of a copy of the mandatory licence or a certificate stating that the Landlord has applied for the licence. If you refuse to supply us with a copy of your licence or refuse to obtain one we will not accept any further instruction from you and will take no further part in the letting and management of your Premises. If we are forced to dis-instruct ourselves once a tenancy has commenced you will remain liable for our full fees for the initial term of the tenancy. We will inform the tenants and the relevant Local Authority of our reasons for dis-instructing ourselves in writing.
6. LANDLORD’S UNDERTAKINGS 6.1. To pay the Agent’s Fees as set out on the Schedule of Fees attached.
6.2. To pay all the Agent’s reasonable costs within seven days of a demand for payment for any claims, costs and expenses of whatever nature which may be made by the Local Authority Housing Benefit, any other Local or National Government Department, any other person or body which arises from the collection and payment to the credit of the Landlord of the monthly rent unless the claim is due to any breach of contract or negligence of the Agent.
6.3. To give notice and confirm in writing to the Agent the Landlord’s intention to seek possession of the property. Such notice must be provided in sufficient time to enable the correct Notice of Termination to be served upon the Tenant according to clause 2.23 above and compliance with current legislation.
6.4. The Landlord agrees to keep the Agent reimbursed for any claim damage or liability whether criminal or civil suffered from and during the time that we are or were acting on your behalf unless it is due to the negligence or breach of contract of the Agent.
6.5. The Agent reserves the right to have work carried out on the Landlord’s behalf and to charge for that work to ensure that the Landlord’s contractual and statutory
The Landlord agrees as follows: April 2014
obligations are fulfilled or it is an emergency.
6.6. If at any time after the commencement of the initial fixed term tenancy unconditional contracts for the sale of the property are exchanged with the tenant the Landlord will remain liable for the Agent’s fees including VAT for the whole of the initial fixed term period.
6.7. All fees due to the Agent will be deducted from rental income, or where insufficient rental income is held by the Agent, shall be payable by the Landlord within fourteen days of a written demand.
6.8. The liability for payment of fees by the Landlord remains even if the actual rent due from the Tenant is not paid unless the failure to pay is due to the breach of contract or negligence of the agent.
6.9. Fees are payable to the Agency as long as the tenants found by the Agent remain in occupation and these will include any renewal or extension periods, while the Landlord continues to use the services of the Agent.
6.10. When management fees are paid in advance by the Landlord, the Agent will return a proportion of the management fee if a tenant has vacated before the end of the tenancy term, unless the termination by the tenant is due to some act of the Landlord or the tenant vacates because the Landlord has given notice according to a break clause. This does not apply to Setting up fees.
6.11. If any major work is required at the property and the Agent is requested in writing to supervise the Landlord will be liable to pay a fee to the Agent as stipulated in the Schedule of Fees. If the work is of a structural or specialist nature the Agent will instruct a surveyor to act on behalf of the Landlord. The Landlord will be liable for the costs of the surveyor together with the administration cost of the Agent for giving the instruction.
6.12. To ensure that any contractor used by the Landlord to carry out work or who the Agent is requested to use by the Landlord holds the necessary qualifications, public liability insurance and is readily available. By signing this Agreement the Landlord agrees that if the contractor does not fulfil these requirements the Agent will not instruct the contractor.
6.13. We will try to arrange a mutually convenient time for contractors attending the property to undertake work on your behalf to meet the Tenant. Where this is not possible we may be able to arrange to meet the contractor at the property. We will charge waiting time at the property at the rate as shown in the Schedule of Fees. We do not meet contractors if we do not manage the property.
7. UNOCCUPIED PROPERTY 7.1. When the property is unlet and unoccupied, the Landlord is responsible for all matters relating to the property. The Agent does not look after the property during void periods.
7.2. The Agent offers a caretaking service which is subject to a fee as detailed in the Schedule of Fees.
7.3. If instructed by the Landlord in writing and subject to receipt of the caretaking fee in advance the Agent will visit the property once each week between Monday and Friday during normal office hours which are 9am to 5pm.
7.4. The Agent will inform the Landlord of any maintenance issues or need of repair. The Agent will not carry out or instruct any contractor to carry out repairs unless the Agent holds funds to pay the contractor. The Agent is not liable for any loss or damage to the property due to any delay in carrying out repair unless the delay is due to breach of contract or negligence of the Agent.
7.5. Any visit can only pin point obvious visual defects and will not be an expert investigation or structural survey of the property nor a check of the Inventory. The Agent cannot accept responsibility for hidden or latent defects
8. GENERAL CONDITIONS 8.1. The Agent reserves the right to reasonably vary the Schedule of Fees to this Agreement, and shall provide at least two months’ written notice to the Landlord of such variance and the effective date.
8.2. Where the Agent holds the Tenancy Bond, the Agent shall account to the Tenant whenever the Tenancy is determined, but subject to clauses 9.3 to 9.14 below.
8.3. To comply with Tenancy Deposit Protection legislation the Agent is a member of the Tenancy Deposit Scheme, which is administered by:
8.4. If we are instructed by the Landlord to hold the Bond, the Agent shall do so under the terms of the Tenancy Deposit Scheme.
8.5. If there is no dispute we will keep any amounts agreed as deductions where expenditure has been incurred on behalf of the Landlord, or repay the whole or the balance of the Bond according to the conditions of the Tenancy Agreement with the Landlord and the Tenant. Payment of the Bond will be made within 10 working days of written consent from both parties.
8.6. If, after 10 working days following notification of a dispute to the Agent and reasonable attempts have been made in that time to resolve any differences of opinion, there remains an unresolved dispute between the Landlord and the Tenant over the allocation of the Bond it will (subject to the clause below) be submitted to the ICE for adjudication. All parties agree to co-operate with any adjudication.
8.7. When the amount in dispute is over £5,000 the Landlord and the Tenant will agree by signing the Tenancy Agreement to submit the dispute to formal arbitration through the engagement of an arbitrator appointed by the ICE although, with the written consent of both parties, the ICE may at his discretion accept the dispute for adjudication. The appointment of an arbitrator will incur an administration fee, to be fixed by the Board of The Dispute Service Ltd from time to time, shared equally between the Landlord and the Tenant. The liability for any subsequent costs will be dependent upon the award made by the arbitrator.
8.8. The statutory rights of either you or the Tenant to take legal action against the other party remain unaffected.
8.9. It is not compulsory for the parties to refer the dispute to the ICE for adjudication. The parties may, if either party chooses to do so seek the decision of the Court. However, this process may take longer and may incur further costs. Judges may, because it is a condition of the Tenancy Agreement signed by both parties, refer the dispute back to the ICE for adjudication. If the parties do agree that the dispute should be resolved by the ICE, they must accept the decision of the ICE as final and
The Dispute Service Ltd
PO Box 541
phone 0845 226 7837 fax 01494 431 123
email firstname.lastname@example.org April 2014
8.10. If there is a dispute we must remit to The Dispute Service Ltd the full deposit, less any amounts already agreed by the parties and paid over to them. This must be done within 10 working days of being told that a dispute has been registered whether or not you or we want to contest it. Failure to do so will not delay the adjudication but The Dispute Service Ltd will take appropriate action to recover the deposit and discipline us.
8.11. We must co-operate with the ICE in the adjudication of the dispute and follow any recommendations concerning the method of the resolution of the dispute.
8.12. By signing this Agreement you agree to abide by the regulations of the DPS of which we are a member. If we manage the Premises we will charge a fee of £50 including VAT for that service.
8.13. If we have to prepare documentation in the form of photocopies or other relevant publishing material we will charge a fee of £35 for this service. If we have to attend court on your behalf as a witness we will charge a fee of £100.
8.14. If we do not manage your Premises we will charge an administration fee of £50 to cover costs for holding the deposit and passing it to any relevant dispute service at the end of the tenancy if you the Landlord and the tenant do not agree deductions. The deposit will be released when we receive written confirmation from both parties. Unless we manage the Premises we will not negotiate on your behalf unless requested by you in writing together with your cheque for our fees in the sum of £ 100 to resolve any dispute.
8.15. If we manage your Premises we will retain 50% of the last month’s rent to enable us to carry out any necessary cleaning or maintenance to enable us to market your Premises and find a new tenant with a minimum of delay. This may be necessary if a tenant disputes any deduction and the Landlord has to refer the matter to DPS to gain compensation for his loss from the Deposit.
8.16. The Landlord warrants that all the information he has provided to the Agent is correct to the best of his knowledge and belief. In the event that the Landlord provides incorrect information to the Agent which causes the Agent to suffer loss or causes legal proceedings to be taken the landlord agrees to reimburse and compensate the Agent for all losses suffered.
8.17. Any interest accruing on client funds held at any time by the Agent or any commission earned by the Agent when acting on behalf of the Landlord shall be retained by the Agent.
8.18. The Agent reserves the right to assign the Agent’s rights and/or obligations under this Agreement where appropriate, providing the Landlord’s rights under this agreement are not materially affected upon giving the Landlord two months’ notice in writing.
8.19. The Landlord gives authority to the Agent to erect an Agency Board at the property, conditional upon Local Authority By-laws and Regulations.
8.20. The Landlord grants to the Agent the authority to sign the Tenancy Agreement and legal notices on the Landlord’s behalf. By signing the tenancy agreement the Agent will bind the Landlord legally to all the terms and conditions contained therein.
8.21. Should the Tenant leave the property of their own accord prior to the expiration of the Tenancy it is the Landlord’s responsibility to take the appropriate action to recover any outstanding rent from the Tenant.
8.22. We reserve the right to deduct the reasonable expenses and costs incurred from acting on your behalf during the tenancy from the rent. This would include the costs of overseas and long distance telephone calls and faxes which will be charged at the current British Telecom rates.
8.23. The Agent complies with the Data Protection Act 1998 and takes all reasonable care to prevent any unauthorised access to or use of the Landlord’s personal data. The information held by the Agent is confidential and will only be used to offer products and services on behalf of the Agent; or if the Landlord fails to pay the agreed commission and other charges to refer the matter to a debt collection agency; or to comply with statute and in receipt of a request from a law enforcement or governmental agency; or to provide personal details of the landlord to utility suppliers or the local authority.
8.24. The Landlord’s details may on occasion be shared with approved contractors or agents in order to provide you with products and services.
8.25. Unless the Agent receives specific instructions to the contrary, details of the property may be given on a commission-sharing basis to other agents. This involves no additional expense and increases the chances of letting the property.
8.26. The Contract (Rights of Third Parties) Act 1999 does not apply to this agreement.
8.27. Unless stated otherwise Vat will be added to the charges shown in this Agreement.
8.28. Any variation to the terms of this Agreement will not be enforceable unless signed by a director of the Agent and by the Landlord.
8.29. This Agreement will be governed by and within the jurisdiction of the laws of England and Wales.
8.30. The Agent will not be liable for any act or omission of any third party unless it is due to the negligence or breach of contract of the Agent.
8.31. The Landlord and the Agent will not be liable for any delay or failure to perform any of the obligations under this Agreement if the failure or delay is due to any event beyond the reasonable control of either party to this Agreement including acts of God, fire, flood, tempest or a national emergency. Both parties agree that if any of these situations arise the other party will have a reasonable time to carry out their obligations under this Agreement.
8.32. Under the Proceeds of Crime Act 2002 the Agent will report any transaction that is deemed to be dealing in, acquiring or transferring criminal property to the Serious and Organised Crime Agency or the police.
8.33. If the tenancy drawn up is a premium lease or a tenancy with capital value on the open market the Landlord agrees to provide the Agent with proof of identity and proof of residence within three working days of any written request.
8.34. If a formal offer has been made by an applicant, the Landlord instructs the Agent to proceed with the proposed tenancy and subsequently withdraws such instructions the Landlord agrees to meet the costs of the Agent incurred up to the sum as shown in the Schedule of Fees and a contribution towards our advertising costs as shown in the Schedule of Fees.
8.35. If the Landlord asks the Agent to arrange for the cleaning of the property prior to the start of a tenancy when the Agent is instructed to arrange a tenancy for the property there will be an administration charge as shown in the Schedule of Fees in addition to the cleaning charge.
8.36. Duplicate Statements of Account can be supplied at the cost as shown in the Schedule of Fees per statement subject to a minimum charge as shown in the Schedule of Fees.
9. INLAND REVENUE TAXATION AND LANDLORDS RESIDENT ABROAD 9.1. As a Landlord you will be liable for tax on rental income and you must inform the Inland Revenue that you are letting the property. There are a number of allowances that you can claim against this rental income. You should seek advice on these allowances from your accountants or the Inland Revenue website on
www.hmrc.gov.uk; or contact your local Inland Revenue Enquiry office and obtain their booklets on letting residential premises. You should be aware that we have to inform the Inland Revenue annually of the names and addresses of all landlords together with details of the premises being let.
9.2. You must keep all invoices for any deductions from your rental income for six years in case of any query from the Inland Revenue. No Landlord regardless of place of residency is exempt from assessment to UK tax. If at any time the normal place of abode of a Landlord is outside the UK for any period totalling six months in a tax year, the Inland Revenue requires the Agent to deduct Income Tax at the current basic rate from the Landlord’s net rental income, and to pay the tax deducted quarterly to the Inland Revenue.
9.3. To avoid the above a Landlord may apply to Inland Revenue by completing the relevant form for an approval number to be issued to the Agent allowing the rental income to be paid to the Landlord without deduction. Each Landlord must hold an approval number.
9.4. It is the Landlord’s responsibility to apply to the Inland Revenue informing them of the name and address of the Agent. If approved, the Inland Revenue will issue a Form of Approval direct to the Agent specifying the effective date after which no tax deductions are to be made.
10. LEGAL PROCEEDINGS 10.1. The Landlord is responsible for taking any legal action against a Tenant when the Tenant is in breach of the Tenant’s obligations set out in the Tenancy Agreement and to defend all actions or other legal proceedings and arbitrations that may be brought against you. All costs and disbursements incurred including legal costs and disbursements will be payable by the Landlord.
10.2. If the Agent is required by the Landlord to attend any tribunal, court proceedings or arbitration then the Agent reserves the right to charge the Landlord an hourly fee as shown in the Schedule of Fees for attendance.
10.3. The Agent may be able to arrange Rent and Legal Protection Insurance on behalf of the Landlord and it is strongly recommended that the Landlord discusses this option.
11. TERMINATION AND ASSIGNMENT OF AGREEMENT 11.1. The Landlord may terminate this agreement in writing at any time before the signing of the Tenancy Agreement by the prospective tenant.
11.2. The Landlord agrees to reimburse to the Agent the reasonable administration and advertising costs incurred.
11.3. The Landlord agrees to reimburse the prospective tenant any reasonable costs incurred in making an application for a tenancy.
11.4. The Landlord and the Agent have the right to terminate this Agreement by giving a minimum of two months’ written notice. Fees remain due under this Agreement on any initial tenancy for which the Agent found the tenant. Subject to 18 months minimum contract.
11.5. The Agent has the right to terminate this Agreement if there is a breach of statute by the Landlord with immediate effect. Termination to be communicated in writing.
11.6. The Agent and the Landlord have the right to terminate this Agreement in writing giving at least two months’ notice if there is a material breach of this Agreement by
either party that cannot be remedied within thirty days of the breach being communicated to the other party.
11.7. The termination of this Agreement will be without prejudice to any existing rights or obligations of either party that have arisen during the time the Agreement was in force.
11.8. The Agent has the right to assign all or part of the rights and obligations under this Agreement by giving the Landlord two months’ notice in writing.
12. DELIVERY OF NOTICES 12.1. The provisions for the service of notices are as follows:
12.2. If the Landlord delivers by hand any Notices or documents which are necessary under this Agreement, or any Act of Parliament to the registered office of the Agent by 5pm or the last known address of the Agent if different; and reasonable evidence is kept of the delivery; the documents or Notices will be deemed delivered on the next working day which excludes Saturdays Sundays and Bank Holidays.
12.3. If any documents or Notices are sent by registered, or recorded delivery post the documents will be deemed delivered upon proof of delivery being obtained.
12.4. If the documents or Notices are sent by ordinary first class post addressed to the Agent at the registered office or the last known address of the Agent if different; and reasonable evidence is kept of the delivery; the documents or Notices will be deemed delivered two working days later, which excludes Saturdays, Sundays and Bank Holidays.
12.5. If the Agent delivers by hand any Notices or documents which are necessary under this Agreement, or any Act of Parliament to the address of the Landlord by 5pm or the last known address of the Landlord if different; and reasonable evidence is kept of the delivery; the documents or Notices will be deemed delivered on the next working day which excludes Saturdays Sundays and Bank Holidays.
12.6. If any documents or Notices are sent by registered, or recorded delivery post the documents will be deemed delivered upon proof of delivery being obtained.
12.7. If the documents or Notices are sent by ordinary first class post addressed to the Landlord at the address of the Landlord or the last known address of the Landlord if different; and reasonable evidence is kept of the delivery; the documents or Notices will be deemed delivered two working days later, which excludes Saturdays, Sundays and Bank Holidays.
13. VAT 13.1. All fees are inclusive of VAT except those shown as exclusive of VAT.
14. DEFINITIONS 14.1. In this Agreement the use of the singular includes the plural and the use of the masculine includes the feminine.
14.2. If there is more than one person signing as the Landlord all parties will be jointly and severally liable for the obligations contained in this Agreement. Jointly and severally liable means that each person will be responsible for complying with the obligations and paying all charges and costs under this Agreement, both individually and together.
14.3. “Agreement” means the contract entered into between the landlord and the Agent.
14.4. “Term” means the aggregate length of a tenancy negotiated by or through us on our introduction and includes any subsequent letting (whether or not pursuant to the exercise of an option contained in the original letting agreement) or any extension or continuation of the contractual tenancy or any statutory periodic tenancy arising after
the expiry of the original term by the same Landlord to the same Tenant whenever the subsequent letting begins within six months of the termination of the original tenancy.
14.5. “Tenancy” means the contract entered into between the Landlord and the Tenant for the right of the Tenant to live in the property for the duration of the Term agreed.
14.6. “Total Rent Payable” means the total rent which would become due under the tenancy were it to continue (without interruption) for the Term stated whether or not the same is actually received.
14.7. “Stakeholder” means that at the end of the tenancy deductions can only be made from the deposit with the written consent of both the Landlord and the Tenant.
14.8. “Bond” “Tenancy Bond” or “Deposit” means the money taken by the Agent from the tenant at the start of the tenancy and retained by the Agent or the Landlord in a separate client account throughout the tenancy to compensate the Landlord for any damage or breach of the tenancy by the tenant.
14.9. “Landlord” means the person or persons who have an interest in the property after any tenancy ends and who have signed this Agreement with joint and several liability.
14.10. “Property” or “property” means the property address shown in this Agreement which includes any part or parts of the building, boundaries, fences and garden and outbuildings belonging to the Landlord unless they have been specifically excluded from the tenancy. When the tenancy is part of a larger building the property includes the use of common access ways and facilities.
14.11. “Tenant” or “tenant” means the person or persons named as the tenant on the Tenancy Agreement.
14.12. “Tenancy Agreement” means the contract entered into between the Landlord and the tenant.
The letting and/or management of your property cannot proceed
until this document has been signed, dated and returned to us April 2014
If you wish to instruct the Agent to market your property for rental purposes, please indicate your acceptance of these Terms & Conditions of Business by returning this document with the sections below completed.
Information which you have supplied for this Agreement may be retained on computer and used by the Agent or any associated companies for direct marketing purposes. April 2014
If you prefer NOT to receive such mailing, please tick this box
SCHEDULE OF LETTINGS FEES
For each initial Tenancy Term, Extension or Renewal
1. Tenant Finding Service – First month’s rent (minimum of £400.00)
2. Agent Inventory Fee £95.00
3. Full Management Service £350.00 and 10% of the monthly rent
4. Advertising Costs £200.00
5. Tenancy Agreement Renewal or Amendment Fee £37.00 (six month renewal) or £75.00 (12 month or above renewal)
Supervision and Arrangement of Works over £200.00
6. 10% of the Cost of Works with a minimum fee of £100.00.
Additional Periodic Inspections at the request of the Landlord
7. To visit and provide a written report – £50.00.
Caretaking of Unoccupied Property
8. A monthly fee of £100.00.
Completing an Inventory or Schedule of Condition
9. A fee of £95.00
Issuing a Section 21 Notice on a Tenant Finding Service
10. A fee of £25.00, if deemed applicable.
Changes to Tenancy Agreement Requested by a Landlord or his Legal Adviser
11. A fee of £55.00.
Providing duplicate statements
12. A fee of £5.00 per statement but subject to a minimum fee of £5.00
Contribution towards sending documents overseas
13. A fee of £5.00
Waiting time for a contractor at a managed property
14. A fee of £20.00 per hour.
Attendance at court or tribunal proceedings
15. A fee of £200.00