1. Our Fee Structure
a) Letting Only – 10% (multi) 8% (sole) of gross rent plus VAT
This service applies to a term of 6 months or more. Our fees are charged at the above rate for the full term and are due at the commencement of the Tenancy. There is a minimum charge of £500 plus VAT. These fees are due and payable even if you dispense with our services during the Tenancy.
Short Let – 20% (multi) 18% (sole) of gross rent plus VAT
Short lets apply to a term of 6 months or less. Our fees are charged at the above rate for the full term and are due at the commencement of the Tenancy.
b) Property Management – 4% (multi) 4% (sole) of gross rental plus VAT
Our fees are charged at the above rate for the full term and are due at the commencement of the Tenancy. Our fees continue to be payable at the same rate for any period for which the property is let including any extension of the initial tenancy unless notice is given under section 6.a) of this agreement.
c) Renewal Fees – 5% of the gross rent plus VAT
Our fees are charged at the above rate for the full term and are due at the commencement of the Tenancy/renewal. These fees are due and payable even if you dispense with our service during the Tenancy. Our renewal fees continue to be payable at the same rate for any period which the property is let beyond the initial tenancy whether or not negotiated by us. Our management fee will remain at 3% plus VAT.
d) Exceptional Work
i) For all works not included in our routine Management Service or works costing in excess of £1000 there will be an administration charge of 10% of the total sum of works involved.
ii)Bi-annual inspections are included in our Management Service. If you require additional inspections during a tenancy there will be a charge of £30 per visit.
iii)Ad-hoc work on Non-Management properties – Where we are requested to carry out work on properties not covered by our Management Service, we will make a charge of 10% of the total cost of the items purchased/work carried out with a minimum charge of £50.
2. Additional Charges That We May Make
a) Inventories – You must supply three typewritten copies of the Inventory List. Where you are unable to supply these we will instruct an Inventory Clerk to create them at your cost. We cannot be held responsible for any error or omission on their part.
i) Check-in – Unless you state otherwise, we shall instruct a professional independent inventory clerk to carry out an inventory check-in at the commencement of the Tenancy. The cost of the check-in shall be borne by the Landlord.
ii) Check-out – Unless you state otherwise, we shall instruct a professional independent inventory clerk to carry out the check-out at the expiration or sooner determination of the Tenancy. The cost of the check-out shall be borne by the Tenant.
3. Our Letting and Rent Demand Duties
We will in the normal course of our duties use our best endeavors to:
a) View the property.
b) Advise on rents, furnishings and related matters.
c) Introduce tenants.
d) Obtain written references.
e) Negotiate the Terms of the Tenancy between yourself and the Tenant.
f) Draw up and execute a Tenancy Agreement.
g) Rent Demand.
Take all necessary steps on your behalf to recover any rent or sum of money in arrears. Subject to 7.b).
h) Obtain a deposit to be held until the end of the tenancy against dilapidation’s and unpaid accounts which the tenant is liable.
i) Notify service companies of a user change at the commencement of any tenancy.
j) Remit rents less deductions for commission, management expenses, bills, disbursements, tax etc. Please allow 10 working days to receive cleared funds to your bank account after the rent day or receipt by us of the rent which ever is the later.
k) Sign and give lawful Notices to any tenant to quit and accept surrenders of Tenancy Agreements.
l) Remit to the Inland Revenue income tax at the appropriate rate along with any interest and penalties on behalf of Landlords resident overseas or companies registered overseas.
4. Our Property Management Duties
In addition to the duties detailed above, as Managing Agents we will, in the normal course of our duties use our best endeavours to:
a)Providing we hold funds to do so, pay ground rents, service charges, standard council tax, water rates, insurance premiums and any regular outgoings from the rental income as and when received. It must be understood that we are entitled to accept and pay, without question, demands and accounts which we believe to be in order.
b) Effect running repairs up to £300 for any one item. In order to cover these minor outgoings, we will retain a working balance of £300. In the event of an emergency, we reserve the right to authorise repairs in excess of this amount.
5. Terms related to our Commission Charges
a) Our fees are calculated on the total rent as shown on the Tenancy Agreement including any extensions and increases thereto.
b) We will be entitled to the agreed commission if we let your property whether you instructed us verbally or in writing.
c) We will be entitled to charge and receive commission at the agreed rate in respect of any renewal with any tenant or occupier introduced by us or any persons subsequently introduced by any occupier of the property for however long that same tenancy lasts and whether or not subsequent extensions of the initial term are negotiated by us or our representative
d) We may retain fees from monies received by virtue of this contract.
e) If the tenant or occupier or any associated party introduced to the property by us subsequently buys the property during the term of the tenancy or within one year of the termination, we may charge the vendor in respect of the introduction a commission of 2.5% of the final purchase price. This sum will become payable on completion or six weeks after exchange of contracts whichever is the sooner.
6. The General Conditions of this Contract
a) Unless otherwise agreed in advance, our appointment to manage a property is subject to no less than two months prior notice to terminate from either party during the course of the Tenancy. Such notice to be given in writing. In the event of the termination of the Management Agreement the commission fee relating to the letting of the property shall remain due and payable to us as introductory Agents.
b) We shall not be liable for any rent or non-payment or any other liabilities incurred by the tenant and/or occupier or for any outgoings payable on your behalf.
c) We shall not be liable for any deficiency, loss or damage to the property, its fixtures and fittings and contents whether included in the inventory or not for the negligence of our servants or agents in relation to the property.
d) You accept that we CANNOT pay any bills on your behalf unless sufficient funds are available
e) We do not undertake to pay any interest on funds held to your account.
f) Any commissions or interest earned by us during the letting or management of the property will be retained by us.
g) Unlet Periods – Please note that our Management Service does not apply when the property is not let.
h) Instruction of Solicitors – You will be informed of any rent arrears or breaches of covenant brought to our attention. However, if it is necessary for a solicitor to take action, you will be responsible for instructing your own solicitor as well as all fees involved.
i) The Rent Act 1977 and Housing Act 1988 – We will only deal with applications for fair rents, repossessions or other court or tribunal matters by special arrangement. Additional charges will be made for all work of this nature.
j) Outgoings – By instructing us to manage the property you are authorising us to pay all bills. We accept no responsibility or liability for the adequacy of any insurance cover or for the verification of any bills/service/maintenance charge demands etc. or whether the works or services to which they relate have been carried out. If we are required to pay service charges on you behalf no liability can be accepted for any interest or charges.
k) Acceptance of Terms – In the event of us letting the property on verbal instructions we reserve the right to withhold the balance of monies due to you until such time as you return, duly signed, the Terms and Conditions of Business, to us
l) Furniture & Furnishings (Fire Safety) regulations 1988 & Fire & Furnishings (Fire Safety)(Amendments)(regulations 1993)
The Consumer Protection Act 1987 requires that all upholstery and upholstered furnishings, loose fittings, permanent or loose covers supplied in a property being rented from 1st March 1993, must meet the Fire Resistance Requirements. Furniture manufactured before 1st January 1950 is exempt.
You hereby warrant to us that all furniture supplied for the use of the Tenant with the property complies with the above Regulations and you agree to indemnify us against all liability, costs and expenses that we may incur by reason of any breach of these Regulations.
You agree that if it comes to our notice that items of furniture and furnishings in the premises contravene these regulations then we have the right to remove the said items and replace them with items that comply with the regulations at your cost.
m) The Health and Safety at Work Act 1974 section 36 (1)
We have a liability to make sure that gas and electrical appliances in rented properties are checked annually by a registered installer/engineer and that accurate records of work carried out on all appliances are kept. As an agent we have a duty to inform you of these requirements and upon acceptance of these Terms it is agreed that we have done so.
It is your responsibility to make sure that records are available for inspection by us and the Tenant at any time.
You agree that if these records are not available we have the right to carry out any necessary inspections/work at your expense.
You hereby warrant to us that all equipment covered by the above Act complies with the standards required and you agree to indemnify us against all liability, costs and expenses that we may incur by reason of any breach of these Regulations by yourself.
n) Landlord and Tenant Act 1985 – You confirm that we as Managing Agents have permission to maintain the property as stated in the Tenancy Agreement subject to the provisions of Section 11 116 of the Housing Act 1988 in relation to your obligations to keep in repair the structure and exterior of the dwelling house and to keep in repair and proper working order the installations for the supply of water, gas, electricity and sanitation also the installations for space heating and heating of water.
o) Landlord and Tenant Act 1987 – We are obliged to include your full name and address on all rent demands. If your address is outside England and Wales then we must provide the Tenant with an address within England and Wales to which Notices (including Notices in Proceedings) may be served upon you. Unless otherwise instructed, we will use the address of our Central Administration Office for this purpose. Although we will use our best endeavours to forward any Notices to you promptly, we cannot accept any liability for any loss or damage incurred either directly or indirectly for our actions in this respect.
p) Change of Address – Each of the parties shall give notice to the other of change or acquisition of any address, telephone, fax or similar numbers as soon as practicable, and in any event within forty-eight hours of any such change or acquisition.
q) Law – This Agreement shall be governed by English law in every particular including formation and interpretation, and shall be deemed to have been made in England. The parties hereto agree to submit to the jurisdiction of the English courts.
r) Joint and Several – All Agreement on the part of either of the parties which comprise more than one person or entity, shall be joint and several, and the neuter, singular gender throughout this Agreement shall include all genders and the plural and the successors in title to the parties.
s) Instructing Sub Agents – We may from time to time instruct sub agents as part of our strategy to market your property. We regularly exchange information to enable us to gain access to a wider market. Unless we are formally requested not to instruct sub agents then this will form part of our normal practice.
t) Changes to this Agreement – We reserve the right from time to time to make changes to the Terms and Conditions and Fees contained in this Agreement. Notice of such changes will be provided in writing by us giving twenty-eight days notice.
u) Indemnity – You undertake to keep us fully and effectively indemnified in respect of any claim, demand, liability, cost and expense relating to the property or outgoings in respect thereof and in respect of any costs, charges or expenses incurred by us in relation to any claim by us under or in relation to these terms. Any sums due to us from you under the terms shall, if not paid on the due date, be subject to interest at the rate of 3% above the base rate of Barclays Bank Plc., from the due date until payment. Such interest shall accrue on a daily basis and be payable before and after judgement.
7. Permissions you must obtain to Let
a)If your Property is leasehold you must ensure that
Any intended letting is permitted by the terms of the Landlord’s Head Lease.
Any tenancy is for a period expiring prior to the termination of your Head Lease.
The written permission of your Head Leaseholder if required is obtained for sub-letting.
If we are required to obtain permissions on your behalf an administration charge of £50 will be made.
b) If the property is to be let is subject to a mortgage.
Permission is obtained from the mortgagor to let the property.
Authority to let the property is obtained in writing from any joint Landlords who must be named in the Tenancy Agreement.
If we are required to obtain permission on your behalf an administration charge of £50 will be made.
c) You must notify your BUILDINGS AND CONTENTS INSURERS that you are letting your property.
8. Taxation of Non-Resident Landlords
a) Income from letting UK property is subject to UK Income Tax, even if the Landlord is resident overseas or a company registered overseas. The Taxes Act 1988 S42A(1) empowers the Inland Revenue to make regulations for the taxation of non-residents in respect of property income. These regulations are detailed in The Taxation of Income from Land (non-resident) Regulations 1995.
b) We can make gross rental payments to you if we are in possession of a valid approval issued by the Inland Revenue. If we are not in possession of an approval then we are required by the Inland Revenue to deduct the basic rate of tax from the rent net of allowable expenses before it is remitted to you. We then have to remit the tax held by us to the Inland Revenue on a quarterly basis and will issue you with a Certificate of Tax Paid at the end of every tax year.
c) It should be noted that if rent is being paid directly to a non-resident Landlord by a tenant the Inland Revenue requires the tenant to deduct income tax at the appropriate rate and remit it to the Inland Revenue as in 8 b) above.
d) We will make a charge of £150 per annum to cover the extra work involved in dealing with tax deductions and administration on any Landlord who has not been able to gain Inland Revenue approval to receive rents gross.
9. How this Agreement will Terminate
a) Upon expiry of a Tenancy or Tenancies, arranged by us from time to time unless the Property is re-let by us within a period of six months from the expiry of any previous Tenancy arranged by us.
b) We reserve the right to terminate this Agreement forthwith in the event that we reasonably believe that you are in breach of any statutory regulation relating to the property.
c) The termination of this Agreement howsoever shall be without prejudice to any obligations or rights of the parties which have accrued prior to such termination.
10. Assignment
You may not assign this Agreement to any other party, however we may assign this Agreement at any time on giving reasonable notice to you.