LETTING AGREEMENT: 

The Standard Management Service includes the preparation of a letting agreement in our standard form(s). This agreement will usually be an Assured Shorthold Tenancy (under the Housing Act 1988 as amended by Part III of the Housing Act 1996). It is usual for us as your agent to sign the tenancy agreement(s) on your behalf.

Should the circumstances require a different agreement then the Agent will consult with the Landlord before entering into an agreement with any prospective tenants.

A copy of the tenancy agreement can be forwarded to a designated advisor or building society. Should the Landlord or his advisors or mortgagees require amendment of the contract or require the Agent enter into further work or correspondence, a fee for this work may be requested.

It is agreed that the Agent may sign the tenancy agreement(s) on behalf of the Landlord.

The Agent will not arrange for the Agreement to be stamped unless specifically requested to do so by the Landlord. Should it become necessary to commence Court proceedings against the Tenant then the Counterpart Agreement can be stamped. There will be in this instance a late stamping fee.

It is recommended that an inventory with a schedule of condition as to that of the décor, fixtures, furniture, equipment and effects should be prepared to ensure that prospective tenants know what is to be included in the tenancy. We can prepare an inventory at a cost of £150.00 + VAT for furnished lettings and £50.00 + VAT for un-furnished lettings.

RENEWALS AND TERMINATION OF AGREEMENTS:

The agreements will be renewed at the end of the Term where necessary unless specifically instructed not to renew by you the Landlord.  

It is important that you, the Landlord, informs us as your Agent of any intention to return to the property or if possession of the property is required for any other reason.   Landlords should be aware that any tenancy agreement entered into on the Landlord's behalf is a binding legal agreement for the term agreed. Details of any tenancy agreement being entered into will be communicated to the Landlord as soon as possible.  Landlords should be aware that the legal minimum notice period to tenants under assured tenancies is generally two months (should the contract allow for early termination) and this needs to be given even in the case of a fixed term tenancy which is due to expire.

Should the Tenant not vacate at the end of the notice period (or is in breach of any other terms of the Tenancy Agreement such as non-payment of rent) the Landlord cannot evict the tenant without first obtaining a Court Order for possession. The Court procedure can take several months and the Landlord would have to appoint a Solicitor. The Agent would provide assistance in the event of Court Proceedings.

OVERSEA RESIDENTS:

For a Landlord living outside the U.K., tax legislation places the responsibility for meeting any tax liability upon the managing agents. For this reason we strongly advise that you follow the guidance provided here Oversea Landlords 

COUNCIL TAX AND OTHER STATUTORY PAYMENTS:

Payment of Council tax and Water Charges will normally be the responsibility of the tenants in the Property.

If there are any circumstances where the liability falls on the Landlord then the Agent will inform the Landlord of the payments required and can arrange for the payments to be made from monies received.   Landlords should be aware that where a property is empty, let as holiday accommodation, or let as a house in multiple occupation  (HMO) responsibility for payment of council tax then rests with the owner of the property.

SERVICES: 

The Agent will take meter readings whenever possible at each change of occupation in the Property and inform the service companies (electricity and gas) of these readings and change of occupation. In many cases, the service companies (e.g. BT) require that the new occupiers formally request and authorise the service and it is not possible for the Agent to do this on the tenant’s or Landlord's behalf. Regarding mail, Landlords should take care to inform all parties (e.g. Banks, clubs, societies etc.) of their new address it is not always possible to rely on tenants to forward mail.

SAFETY REGULATIONS:

The letting of property is now closely regulated with respect to consumer safety. The law makes particular demands regarding the safety, servicing and inspection of the gas and electric appliances and installations within a property, and with respect to the type of any furniture and soft furnishings that are also provided.  The following regulations apply: 

           Furniture and Furnishings (Fire)(Safety) Regulations 1988

           Gas Safety (Installation and Use) Regulations 1994

            Electrical Equipment (Safety) Regulations 1994

The Landlord confirms that he/she is aware of these obligations and that the Agent has provided sufficient information (via explanatory leaflets available on request) to assist with compliance. It is agreed that the Landlord shall ensure that the Property is made available for letting in a safe condition and in compliance with above regulations. Landlord agrees to indemnify the Agent against any expenses or penalties that may be suffered as a result of non-compliance of the Property to fire and appliance safety standards.

The Agents will arrange for the gas system to be serviced by a GORGI registered engineer on an annual basis and the charge of the service will be paid by the Landlord by way of a deduction from rents received. If the Landlord is arranging the service of the Gas System a copy of the 'Landlord's Gas Safety Record' must be forwarded to the Agent and to the Tenant.  

SALE OF PROPERTY:

In the event of a party introduced by the Agent (or any person or body corporate associated with that party) subsequently purchasing the Property, whether before or after entering into a Tenancy Agreement, commission shall be payable by the Landlord to the Agent on completion of the sale at the rate of 1.5% of the sale price, plus VAT. 

VALUE ADDED TAX:

Our fees are subject to VAT at the appropriate rate (currently 20%).  

INSURANCE:

The Landlord shall be responsible for the Property being adequately insured and that the insurance policy covers the situation where the Property is let.

LEGAL PROCEEDINGS:

Any delays of payment or other defaults will be acted on by the Agent in the first instance. Where the Agent has been unsuccessful in these initial actions, or there are significant rent arrears or breaches of the tenancy agreement, the Landlord will be advised accordingly. A solicitor would then be appointed and instructed by the Landlord (except where the Agent is unable to contact the Landlord, in which case the Agent is authorised to instruct a solicitor on the Landlord's behalf).  The Landlord is responsible for payment of  all legal fees and any related costs.

H M Revenue & Customs

Please note that we are periodically asked by H M Revenue & Customs (HMRC) to provide information about gross rents received on behalf of our landlords and we are obliged to provide them with this information.

The figure reported will be the gross receipts before all outgoings. This gross figure is the money paid into our client account during the reporting tax year, even if the invoice (rent due date) is outside the tax year.

Further information about your obligation to inform HMRC about your income is available here 

 LETTING ONLY SERVICE:

Where the Landlord does not wish the Agent to undertake full management, the Agent can provide a Letting Service. The Letting Service includes finding a tenant and the preparation of the agreement only. 

Full details here Letting Only Service or contact us to discuss your requirements.

THE TENANCY DEPOSIT:

We, as your Agent, will request a deposit from the tenant for the following purposes:-

1. Any damage, or compensation for damage, to the premises its fixtures and fittings or for missing items for which the tenant may be liable, subject to an apportionment or allowance for fair wear and tear, the age and condition of each and any such item at the commencement of the tenancy, insured risks and repairs that are the responsibility of the landlord.
2. The reasonable costs incurred in compensating the landlord for, or for rectifying or remedying any major breach by the tenant of the tenant's obligations under the tenancy agreement, including those relating to the cleaning of the premises, its fixtures and fittings.
3. Any unpaid accounts for utilities or water charges or environmental services or other similar services or Council Tax incurred at the property for which the tenant is liable.
4. Any rent or other money due or payable by the tenant under the tenancy agreement of which the tenant has been made aware and which remains unpaid after the end of the tenancy.

We are members of the Tenancy Deposit Scheme, which is administered by:

The Dispute Service Ltd
PO Box 1255
Hemel Hempstead
Herts
HP1 9GN phone 0845 226 7837 fax 01494 431 123 email deposits@tds.gb.com

If we are/ the Agent is instructed by you/the Landlord to hold the Deposit, we/ the Agent shall do so under the terms of the Tenancy Deposit Scheme.

The Agent holds tenancy deposits as Stakeholder (.if not already specified within the Tenancy Agreement).
At the end of the tenancy covered by the Tenancy Deposit Scheme

1. If there is no dispute we/the Agent 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 Deposit according to the conditions of the Tenancy Agreement with the Landlord and the Tenant. Payment of the Deposit will be made within 10 working days of written consent from both parties.
2. If, after 10 working days* following notification of a dispute to the Agent/Member 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 Deposit it will (subject to B 4.3 below) be submitted to the I Independent Case Examiner (E f)or adjudication. All parties agree to co-operate with any adjudication.
3. The statutory rights of either you/the Landlord or the Tenant(s) to take legal action against the other party remain unaffected.
4. 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 binding.
5. If there is a dispute I/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 I/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 me/us.
6. The Agent/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.

Dealing with disputes from non-ASTs: The Independent Case Examiner (ICE) may agree to resolve any disputes over the allocation of these deposits, by arrangements. If he does:-

• The ICE will propose what he considers the most effective method of resolving the dispute.
• Landlord, tenant and agent must consent in writing his proposal.
• Disputes will be subject to a fee of £500 + VAT, or 10% of the deposit + VAT, whichever is greater.
• The resolution process will not start until the parties' consent, the disputed amount and the fee have been submitted.

Incorrect Information

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.

Landlord independently holding deposit outside TDS

• If you/the landlord decide(s) to hold the deposit yourself in relation to an Assured Shorthold Tenancy, we will transfer it to you within 5 days of receiving it. You/the landlord must then register it with another Tenancy Deposit Protection Scheme within a further 25 days if the tenancy is an Assured Shorthold Tenancy. If you fail to do so the Tenant can take legal action against you/the landlord in the County Court. The Court can make an order stating that you/the landlord must pay the deposit back to the Tenant or lodge it with a custodial scheme which is known as the Deposit Protection Service. In addition a further order will be made requiring you/the landlord to pay compensation to the Tenant of between one and three times the amount of the Deposit.
• If a landlord fails to meet the initial requirement to protect the deposit, no Section 21 Notice can be served until either the landlord returns the deposit to the tenant in full or with such deductions as the tenant agrees; or if the tenant has taken proceedings against the landlord for non-protection and those proceedings have been concluded, withdrawn or settled (for example, by the court awarding damages being the return of the deposit or a fine not more than three times the value of the deposit).
• If a landlord fails to serve Prescribed Information (s)he cannot serve a Section 21 Notice until the Prescribed Information has been served - but this can be more than 30 days after receiving the deposit. This will not prevent a tenant from issuing proceedings for late provision of the Prescribed Information and seeking a penalty award.

Tenants can make an application to a county court for a penalty award even where the tenancy has ended, and can do so for up to six years.

If you/the Landlord decide(s) to hold the deposit and the Tenancy is an Assured Shorthold Tenancy you/the landlord must specify to us/the Agent prior to the start of the Tenancy under which other Tenancy Deposit Solutions you/the landlord must provide proof of membership, together with a copy of the insurance policy before the Deposit can be released. If the Deposit is to be sent to the custodial scheme known as the Deposit Protection Service (DPS) we/the Agent will forward the Deposit to the DPS and register the details of the Tenancy on your behalf OR give you a cheque for the amount of the deposit made payable to the DPS for you to forward within 25 days.