THIS AGREEMENT is made between the Landlord of the Property and STUDENT LETTING COMPANY. The purpose of this document is to set out clearly and concisely the extent of the letting and management service offered and the scale of fees charged.
STANDARD MANAGEMENT SERVICE
STUDENT LETTING CO provides a property management service to owners (and superior landlords) wishing to let out their property. The standard fee for the management is taken as a percentage of the gross rents due for the period of the Tenancy (see Scale of fees 3.1) and a set-up fee will be levied at the outset for taking references and arranging the Tenancy. (see scale of fees 3.1.1).
2.1 The Standard Management Service includes:
2.1.1 Advising as to the likely rental income
2.1.2 Advertising and generally marketing the Property
2.1.3 Interviewing prospective tenants and taking up full references including employer or previous landlord character reference. Where necessary, additional security would be requested by means of a guarantor
2.1.4 Preparing the Tenancy Agreement necessary for the Landlord to gain protection of the relevant Rent Housing Acts, and renewing the Agreement where necessary at the end of the term.
2.1.5 Liaising with a Landlord’s mortgagees where necessary with regard to references and Tenancy Agreement.
2.1.6 Taking a deposit from the Tenant to be held by the Deposit Protection Scheme until the end of the Tenancy when the Property and contents have been checked for unfair wear and tear
2.1.7 Collecting the monthly and paying over to the Landlord monthly (normally sent within 15 days of collection) less any fees or expenses due or incurred for the period. Payments will be made by direct bank transfer.
2.1.8 Notifying the service companies (principally electricity, gas and water) of the meter readings and advising them of the transfer of service contracts to the Tenant at the beginning and end of each tenancy.
2.1.9 Regular inspections of the Property are carried out throughout the term of the tenancy. Responsibility for and management of the Property when empty/ vacant is not included, and will only be carried out by special arrangement.
2.1.10 Co-ordination of repair or maintenance including arranging a tradesman to attend the property and obtaining estimates where necessary, supervising works and settling accounts from rents received. (subject to maximum expenditure Point 6)
2.1.11 Carrying out a full Property inspection and inventory check at the end of the Tenancy and dealing with matters relating to unfair wear and tear before releasing the Tenant’s deposit.
2.1.12 Carrying out an Inventory and Schedule of Condition of the property prior to the tenancy commencing
2.2 Additional items and other items and other expenses you will be charged according to the scale of fees defined below.
2.3 Although the aim is to take care in managing the property, the Agent cannot accept responsibility for non-payment of rent, damage or other default by tenants, or associated legal costs incurred in their collection where the Agent has acted correctly in terms of this Agreement, or on the Landlord’s instructions. An insurance policy is recommended for this eventuality.
- SCALE OF FEES
3.1 Standard Management Fee 10% of rent due
Eg. if the monthly amount was £….., you will pay a fee of £…… inclusive of VAT)
3.1.1 Letting Fee and set up 50% of first month’s rent
Eg. if the monthly amount was £….., you will pay a fee of £….. inclusive of VAT)
3.3 Tenancy Renewals £150.00
3.4 Redirection of mail overseas cost of postage
3.5 Faxes & overseas telephone calls telephone costs
3.6 Minimum Fee (in case of early termination) 50% of one month’s rent
Eg. if the monthly amount was £….., you will pay a fee of £….. inclusive of VAT)
3.8 Duplication & testing of extra keys £10.00 per key inclusive of VAT
- GENERAL AUTHORITY and RENTAL PAYMENTS
The Landlord confirms that he/she is the sole or joint owner of the Property and has the right to rent out the Property under the terms of the mortgage or head lease. Where necessary the Landlord confirms that permission to let has been granted by the mortgage company. The Landlord authorises the Agent to carry out various duties of property management as details 2.1.1 – 2.1.12 previously. The Landlord also agrees that the Agent may take hold deposits. It is declared that the Agent may earn and retain commissions on insurance policies issued and that no interest is payable to the landlord from the deposit held by the agent.
4.1 We require the tenants to pay their rent on the due date every month, being the date of commencement of the tenancy. Normally this is done by standing order. Once the rent is received we require the monies to clear our accounts. The system of payment for rent is as follows. Please note this system carefully as the landlord will need to take into account our rental payment system when considering his payment and outgoings on the property. Please note our system is only applicable only once we have received cleared funds from the tenants. Monies received on the first of the month are paid out on 14th of the months by BACS transfer. This transfer may take time to clear.
- REASONABLE COSTS AND EXPENSES
The Landlord agrees to repay the Agent for any reasonable costs, expenses or liabilities incurred or imposed on the Agent provided that they were incurred on behalf of the Landlord in pursuit of the Agent’s normal duties. To assist the Agent in carrying out his duties effectively, the Landlord agrees to respond promptly with instructions where necessary to any correspondence or requests from the Agent.
6.1 The Landlord agrees to provide the Property in good and lettable condition and that the Property, beds, sofas and all other soft furnishing conform to the current fire safety regulations.
6.2 The Landlord on vacating the Property and/or prior to the commencement of the Tenancy will thoroughly clean the Property (i.e. carpets, skirting boards, inside and outside of cupboards and drawers). Specific attention should be paid to both the kitchen and bathrooms. This includes cutting and tidying the gardens and any other area surrounding or belonging to the Property that will become the responsibility of the Tenant to maintain on commencement of the Tenancy. A subsequent cleaning charge will be levied should the Property be handed to the Tenant in a disorderly and dirty condition.
6.3 The Landlord agrees to make the Agent aware of any on-going maintenance problems. Subject to a retained maximum expenditure limit (UK landlords: £150 and overseas landlord’s: £250) on any single item or repair, and any other requirements or limits specified by the Landlord, the Agent will administer any miscellaneous maintenance work that needs to be carried out on the Property (although the administration of major works or refurbishment will incur an additional charge – see Scale of Fess). The administration of major works will only be undertaken by the agent when agreement has been reached between the landlord and agent. In normal circumstances major works will be undertaken by the landlord. The agent cannot accept liability for any major works carried out on the property.
6.4 ‘Retained maximum expenditure limit’ means that the Agent has authority to spend up to this amount (or other amount individually agreed) on reasonable improvements or repairs in any single monthly accounting period without prior reference to the landlord.
6.5 For expenditure in excess of this, the Agent would normally request authorisation in advance, although it is agreed that in an emergency or for the reasons of contractual necessity where reasonable endeavours have been made to contract the Landlord, the Agent may reasonably exceed the limits specified.
6.6 By law, it is necessary to carry out an annual inspection and service for the central heating and any gas appliances. The Agent will carry this out on the Landlord’s behalf and expense and administer the necessary inspection and maintenance records. The reasonable costs involved will be debited to the Landlord’s account.
- CHANGE OF RESIDENCE OF LANDLORD
In the event that the landlord takes up residence outside of the United Kingdom then, in accordance with Finance Act 1995, a deduction in respect of Income Tax will be made unless a valid exemption certificate is obtained from the Inland Revenue and lodged with the Agent.
- OVERSEAS RESIDENTS:
When letting property and collecting rents for landlords overseas, the Agent is obliged by the Texas Management Act (TMA) 1970 and the Taxation of Income from land (non-residents) Regulation 1995 to deduct tax (at basic rate) to cover any tax liability, unless the landlord has been authorised in writing by Inland Revenue to receive rent gross. In this situation, the Agent also requested that the Landlord appoints an accountant or reserves to the Agent the right to employ a suitably qualified accountant in order to manage correspondence with the Inland Revenue. A standard annual charge will be made for this work and reasonable administration expenses may be charged by the Agent for further works requested by the Landlord, Landlord’s accountant or the Inland Revenue in connection with such tax liabilities. In many cases, landlord’s tax liability is minimal when all allowable costs are deducted.
- COUNCIL TAX
Payment of Council Tax will normally be the responsibility of the Tenants in the property. However, Landlords should be aware that where the property is empty, let as a holiday accommodation, or let as a house in multiple occupation (HMO) responsibility of payment of council tax then rests with the owner of the property.
The landlord will arrange redirection of his/her own mail from the Property via the Post Office. No liability can be attached to the Agent for failure to receive or loss of post that continues to be sent to the Property once the Tenancy commences. If the Agent is required to forward mail to the Landlord then the Agent will be entitled to charge an administration fee, as well as recovering the cost of postage.
11.1 The Agent will prepare an inventory for the Property. The standard inventory will include all removable items in the Property (except those negligible value) plus carpets, paintwork including colour and decoration of ceilings, walls, doors and door fittings, wall coverings, curtains, mirrors, sanitary ware and other articles that, in the opinion of the Agent, need regular checking.
11.2 Landlords should not leave any articles of exceptional value in the Property without prior arrangement with the Agent.
11.3 The standard inventory service does not include photography but this can be prepared at the Landlord’s request
- TENANCY AGREEMENT:
The Standard Management Service includes the preparation of a tenancy agreement in the Agent’s standard form(s) and provision of a copy of this agreement to a designated advisor or building society. Should the Landlord, advisors or mortgagees require amendment of the contract or require the Agent to enter into further work or correspondence, a fee for this extra work may be requested (or you may have the tenancy agreement amended by your own adviser at your own expense). It is agreed that the Agent may sign the tenancy agreement(s) on behalf of the landlord.
13.1 Under the Standard Management Service, the Agent will normally carry out inspections quarterly starting after first month. During tenancies where the Agent deems it unnecessary to continue carrying out inspections every quarter the inspections will be carried out thereafter at the discretion of the Agent. It is not the intention to check every item of the Inventory at this stage; the inspection is concerned with verifying the good order to the tenancy (i.e house is being used in a “tenant-like” manner) and the general condition of the Property. This would normally include inspecting the main items (carpets, walls, cooker, main living area and gardens). Where these were felt to be unsatisfactory, a more detailed inspection would generally be made.
13.2 Following the departure of Tenants, the Agent will carry out a final inspection of the Property. Testing of all the electrical appliances, heating system and plumbing is not feasible during this inspection – a qualified contractor should be appointed for this purpose should the Landlord require it.
- HOLDING FEES AND DEPOSITS
14.1 A holding fee is generally taken from a Tenant applying to rent a property. The purpose of this fee is to verify the Tenant’s serious intent to proceed, and to protect the Agent against any administration expenses (taking our bank references, conducting viewings, re-advertising) that may be incurred should the Tenant decide to withdraw the application. The holding fee does not protect the Landlord against loss of rent due to the Tenant deciding to withdraw, or references proving unsuitable although early acceptance of rent from the applicant would not be advisable until satisfactory references have been received. Landlords should notify the gent where they wish a larger security fee or deposit to be carried to protect against loss of rents, or insurance undertaken.
14.2 Upon signing the Tenancy Agreement, the Agent will take a dilapidations deposit from the Tenant(s) in addition to any rents due. The purpose of the dilapidation deposit is to protect the Landlord against loss of rent or damage to the property during the Tenancy itself. These deposits, held by the Agent, will be kept in a separate and secure client account ready for refunding (less any charges due) at the end of the tenancy.
14.3 The Agent is entitled to charge the Landlord a cancellation fee if the landlord subsequently instructs the Agent not to start the Tenancy when a suitable tenant has been found and referenced. The fee will be equivalent to the letting and set up fee point 3.1.1.
15.1 This agreement may be terminated by either party by way of two month’s written notice. The Minimum Fee applies if on termination the total fees due are less than the Minimum Fee. Where cancellation of this Agreement is unavoidable due to circumstances beyond the control of either party, the Minimum Fee will not apply and any pre-payments will be returned to the person entitled to them, less any expenses reasonably incurred to the date of the cancelation.
15.2 The Landlord shall provide the Agent with any requirements for return and repossession of the Property at the earliest opportunity. 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 being entered into will be communicated to the Landlord as soon as possible.
15.3 Landlords should be aware of 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.
16.1 The Landlord when wishing to serve any notice upon or give instructions to the Agent must do so in writing. Verbal instruction will not be accepted except where it is followed by written communication of the instruction
16.2 The Agent will not act on any matter outside this agreement unless instruction is given and accepted in writing by the Landlord and Agent respectively
16.3 The Landlord agrees to reply to all correspondence promptly.
- SOLE LETTING RIGHTS
It is agreed that the Agent may let the Property.
- SAFETY REGULATIONS
WARNING: You should read and understand these obligations before signing overleaf.
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 electrical appliances and installations within a property, and with respect to the safety of furniture and soft furnishings provided. The following regulations apply:
- Furniture and Furnishings (Fire) (Safety) Regulation 1988
- General Product Safety Regulations 1994
- Gas Safety (installation and use) Regulations 1998
- Electrical Equipment (Safety) Regulations 1994
- Plugs and Sockets (Safety) Regulations 1994
The landlord confirms that they are aware of these obligations. Is it agreed that the landlord shall ensure that the property is made available for letting in a safe condition and in compliance with the above regulations. The Agent shall ensure that all relevant equipment is checked at the beginning of the tenancy or during the tenancy as required. The Landlord agrees to pay the Agent costs incurring any reasonable expenses or penalties that may be suffered as a result of non-compliance of the Property to fire and appliance safety standards.
It is agreed that any instructions to the Agent from the Landlord regarding termination, proceedings, major repairs, payment, or other significant details regarding the letting to be confirmed to the Agent in writing.
The landlord will supply the Agent with a total of three sets of keys. If these are not supplied by the Landlord four days prior to the commencement of the Tenancy, the Agent will have the extra copies cut for the Landlord at the Landlord’s expense and be entitled to an administration charge (see “Scale of Fees”).
- VALUE ADDED TAX
Our fees will be subject to VAT from September 2015
The Landlord shall be responsible for the Property being adequately insured and that the insurance policy covers the situation where the Property is let. The Agent would normally be responsible for the administration of any claims during the period of management where the Property is being managed (i.e. this only applies to properties under full “Standard Management Service”) and subject to an additional charge for major works (see “Maintenance”).
- HOUSING BENEFIT
The Landlord undertakes to reimburse the Agent for any claims from overpayment which may be made by the local authority in respect of housing benefit, or other benefit scheme, paid to or on behalf of the Tenant(s) as rent. This undertaking shall remain in force during the currency of the Tenancy and up to six years thereafter, whether or not the Agent continues to be engaged to let or manage the property under this Agreement.
- 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 successful in these initial actions, or there are significant rent arrears or breaches of the Tenancy Agreement, the Landlord will be advised accordingly. A solicitor may then be appointed and instructed by the Landlord (except where the Agent is unable, after taking reasonable efforts, to contact the Landlord. In that event 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.
- SALE OF PROPERTY
If the Landlord sells the Property within six months of the end of a Tenancy (or within six months of an introduction by the Agent) to a person who was shown or let the Property by the Agent, or is or was a Tenant of the Property (and was introduced by the Agent) the Agent shall be entitled to 1.0% (plus VAT) of the selling price on completion of the sale (unless otherwise stated in writing by the Agent).
25.1 Where, with the consent of the Landlord, the Tenancy is renewed to the same Tenant (or any person associated with the Tenant) originally introduced by the Agent, the Agent can prepare the necessary Tenancy Agreement. A renewal fee shall be payable at the renewal date (see Scale of Fees)
- ACCEPTANCE AND VARIATION
The terms and conditions of this Agreement may be varied by either party, but only with prior notice.
- ENERGY PERFORMANCE CERTIFICATE (EPC)
In order to market your property, you must ensure that you have a valid EPC as we will need to display this to any potential tenants. If you do not have this certificate we can get this done at a cost of £105.00 which is inclusive of VAT.