Our management service

a) We will collect rent in accordance with the terms of the tenancy agreement. In cases of persistent late or non-payment, The Agent will endeavour to notify you at the earliest possible opportunity and offer advice towards legal steps for the recovery of the rent and repossession of the property.

b) The Agent shall use reasonable endeavours to transfer the monies due under the terms of this agreement to your bank account within ten (10) working days of collection by us of rent. Banking arrangements are such that it is necessary for us to allow such time to process and/or clear rent payments.

c) The Agent management fees will be deducted on a pro-rata basis from rent collected

2. Other services provided by The Agent include:

a) The Agent will endeavour to notify existing service providers and the local authority, if requested, at the commencement and termination of the tenancy, of the tenant’s/landlord’s liability for payment of the services and council tax.

The utility companies and the local authority should send the relevant forms to the new occupier(s) to be completed and signed. (Deposits may be required by the utility companies prior to re-connection of services). The Agent cannot be held liable if services are disconnected or are not transferred by the utility companies.

b) Holding a deposit (the amount to be agreed) from the tenant against unpaid rent or bills, dilapidations and any other costs or losses incurred as a result of any breach by the tenant of the terms of the tenancy agreement for which the tenant is liable. The deposit will be held in accordance with the terms of the tenancy agreement and if the tenancy agreement is silent, the deposit will be held agents for the landlord subject to deposit protection regulations.

c) Arranging for the booking of the inventory for the property and check-in of the tenant. The cost of preparing an inventory or the cost of up-dating and re-typing an old one will be borne by the landlord.

If none exists and unless otherwise requested we will automatically request on the landlord’s behalf for one to be prepared by an independent inventory company. If an inventory already exists The Agent reserves the right to update and re-type the document if necessary. It is the usual practice for the landlord to meet the cost of both the inventory and the check-in at the start of the tenancy and for the tenant to pay for the check-out. Charges vary depending on the size of the property but approximate costs can be given on request. Whilst care will be taken in giving instructions to independent inventory clerks, we cannot accept liability for any error or omission on their part.

3. Overseas Landlords – Finance Act 1995

Under Section 42A Income and Corporation Taxes Act 1988 supported by the Taxation of Income from Land (Non-Residents) Regulations 1995 (Finance Act 1995), while a landlord may be considered non-resident for tax purposes, he still has to pay United Kingdom income tax arising from rents received in this country. Unless an “Exemption” is received from the Inland Revenue which allows the landlord to account for tax himself under the self-assessment regime, The Agent is obliged by law to deduct tax at the appropriate rate from rents received and account to the Inland Revenue for these monies on a quarterly basis. Landlords are responsible for obtaining their own “Exemption” and should note that any “Exemption” received is not transferable. It should be noted that no interest is paid to landlords on tax retentions held by The Agent.

4. Comprehensive Management Service

a) Our management fee is based on 6% (inc.VAT) of the total rent for the period of our instruction and is payable quarterly in advance (the minimum fee charged will be £30 per month). Our appointment is subject to three (3) months’ notice to cease management by either side.

The service includes:

b) Where instructed by the landlord and as long as we hold sufficient funds to do so, we will pay ground rents, service charges, standard council tax, water rates, insurance premiums and any regular outgoings out of the rental income, as and when demands are received. Although we shall do our best to query any obvious discrepancies, it must be understood that we are entitled to accept and pay, without question, demands and accounts that we believe to be in order. In particular, we do not accept responsibility for the adequacy of any insurance cover or for the verification of service/maintenance charge demands where applicable.

c) The Agent will attend to the day to day minor repairs and maintenance of the property and its contents. We require minimum float of £200 (subject to variation depending on the size of the property and on any bills which may be due) at the commencement and during the term of the management to enable us to meet any expenditure prior to the next rent collection. We cannot undertake to meet any outgoings beyond the available funds held by ourselves. We will obtain estimates for consideration by the landlord for any major repairs or maintenance over £500 and submit them for approval prior to the commencement of the works.

d) During void periods (which we will endeavour to minimise) we charge a fee of £30 per property per month. The Agent will continue to manage the landlord’s property during this period, however, we cannot be held liable for any loss and/or damage arising from fire, flood or theft. Should the landlord require supplies to be turned off or disconnected during this period. The Agent must receive formal notification in writing to this effect and we will arrange for a plumber to attend at the landlord’s expense. The landlord is further advised to contact his insurance company should the property be empty for longer than thirty (30) days.

e) We will liaise where necessary with the landlord’s accountants, solicitors, superior landlords, managing agents, mortgagors and insurance companies.

5. Conditions

a) The Agent requires that landlord obtains permission prior to a letting.

This includes:

i) consent to let from the landlord’s mortgagors;

ii) If the landlord is a lessee, he must confirm that the lease extends beyond the terms that he proposes to let and that the landlord’s own lessor’s consent is obtained

iii) The landlord must notify his insurance company of his intention to let and obtain their agreement to extend the insurance cover on the property and its contents to cover the changed circumstance.

iv) If the landlord is a joint owner, he must ensure that all the other joint owners are named in the tenancy agreement and confirm that he is authorised to give instructions on their behalf.

b) Any commissions, interest or other income earned by The Agent, for example by referrals to contractors or inventory clerks, while carrying out duties as agent for the letting and/or management of the property will be retained by The Agent.

c) By signing this document the landlord agrees that, where any of The Agent’ fees, commission charges and/or renewal commissions or charges remain outstanding for more than (7) days, The Agent may use any sums obtained or held on his behalf, including rental payment on this or any other property on which The Agent is instructed, to pay the outstanding sums.

d) Disclaimer

The Agent will aim to carry out the above services with reasonable care and skill. However, we do not guarantee the suitability of tenants, timely rental payments or vacant possession at the end of a tenancy and cannot be held liable by the landlord for such events.

e) Legal Proceedings

The Agent are NOT responsible for any legal steps for the recovery of rent and/or repossession of the property. Applications for rent or appearances before any Court or Tribunal will be by special arrangement and our fee for any such attendance shall be £350 per day or part thereof per The Agent employee. The Agent will not accept service of legal proceedings on the landlord’s behalf.

f) Indemnity

The landlord agrees to indemnify The Agent as agents against any costs, expenses or liabilities incurred or imposed on us provided that they were incurred on his behalf in pursuit of our normal duties.

g) Service of notice

In the event of The Agent being unable to contact the landlord(s) despite all reasonable efforts on our part, all documents and/or correspondence and/or notices required or desired to be sent by The Agent to the landlord(s) may be sent to the agent resident in England & Wales hereby nominated by the landlord.

h) Amendments/Variations

This contract constitutes the entire agreement between The Agent and the landlord and supersedes all prior agreements, understandings and representations or communications between the parties. No amendment or variation to this contract will have any contractual effect unless a director of The Agent has approved the amendment/variation in writing.

i) The Agent reserves the right to change the schedule of fees and terms of business.

j) Jurisdiction

The High Court and the County Courts of England & Wales shall have jurisdiction to hear and determine any action or proceedings in respect of this agreement.

6. VAT

All charges levied by The Agent, whether commission fees or otherwise, are subject to the addition of VAT at the prevailing rate.

7. Interest

The Agent’ fees become payable on demand, as and when they fall due. We reserve the right to charge interest on any amounts still outstanding twenty eight (28) days after The Agent fees are first demanded.

The prescribed rate of interest shall be at 2% per annum above HSBC’s base rate and chargeable from the date upon which the fees first became due.

8. IMPORTANT NOTICES

a) The Fire and Furnishings (Fire)(Safety) Regulations 1988

The Fire and Furnishings (Fire)(Safety)(Amendment) Regulations 1993

1. The landlord warrants that he is fully aware of the terms and conditions of the Furniture and Furnishings. The Fire and Furnishings (Fire) (Safety) Regulations 1988 and (Fire) (Safety)

(Amendment) Regulations 1993 (herein referred to as ‘the Regulations’). In signing this document the landlord declares that all the furniture presently in the property or to be included in the property to which this agreement applies complies in all respects with the Regulations.

2. The landlord further warrants that any furniture purchased after this date for the property will also comply with the Regulations for the duration of the tenancy.

b) The Gas Safety (Installation & Use) Regulations 1998

The landlord is fully responsible for making sure that gas installations and appliances are maintained in good order and checked for safety at least every 12 months by a Registered Engineer and must provide a copy of the certificate awarded upon request. On request, The Agent will call in a Registered Engineer annually to inspect all gas appliances and their installations, and carry out any remedial works where necessary.

c) The Electrical Equipment (Safety) Regulations 1994

These Regulations require that all landlords supplying electrical equipment must ensure that it is safe and will not cause danger and that it satisfies the above Regulations. If requested in writing The Agent will arrange an electrical check.