Terms of Business
1. GENERAL AUTHORITY
The landlord confirms that he is the sole or joint owner/client, or alternatively the owner/clients’ properly appointed and authorised representative 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 mortgagee. The landlord authorises the agent to carry out the various duties of property management and letting as detailed in service Options 1, 2 and 3 and throughout the entire two part contract agreements. The landlord also agrees that the agent may take and hold deposits and retain any bank interest earned. It is declared that the agent may earn and retain commissions on insurance policies issued.
2. INSTRUCTIONS
It is agreed that any instructions to the agent from the landlord regarding termination, court proceedings, major repairs, payment or other significant details regarding the letting will be confirmed to the agent in writing by such method as agreed with you.
3. LEASEHOLDERS / MORTGAGORS
If your property is leasehold, please ensure that:
- Any intended letting is permitted by the terms of your individual property lease and any head lease.
- Any tenancy is for a period expiring prior to the termination of your lease.
- The written permission of the landlord, if necessary, is obtained for sub-letting and a copy is provided to Letmove.com as confirmation.
If the property to be let is subject to a mortgage, please ensure that;
- Permission is obtained from the mortgage lender to sub-let the property (it is advisable to obtain such permission at an early date prior to any sub-letting).
- Any joint owner’s permission (eg superior landlord, freeholder etc) has been received and that their name(s) appear on the Tenancy Agreement.
4. INSURANCE
The landlord shall be responsible for the property being adequately insured and that the insurance policy covers the situation of the property being let. Letmove.com is limited to providing information and not advice regarding general insurance under the FSA (Financial Services Authority) Regulations, which came into force on the 14 January 2005. Under these regulations, we will not be able to complete proposal forms and claim forms on your behalf as your agent.
It is essential that the premises and contents included within the check-in inventory are adequately insured and that your insurers are aware the premises are let. Failure to do so may invalidate your insurance. You must inform your insurers whenever the premises remain vacant for a period longer than specified in your insurance policy. We will not be responsible for the renewal of your insurance cover.
We strongly recommend you arrange for an insurance policy which covers loss of rent, your building, contents and legal expenses.
Exclusive landlord insurance deals, at discounted rates, are available for Letmove.com customers and their recommended landlord associates. Landlord Buildings, Landlords Contents, Rent Guarantee, Landlords Liability, Tenants Contents and Personal Possessions etc quotations can be available in approximate 60 seconds, cover can also be provided instantly by one of our insurance company partners on payment by debit or credit card. Instalment payments are usually available, subject to an additional charge (refer for full details).
4.1 Insurance claims
Landlords and tenants should take care to review any existing policies when renting or letting a property for the first time as some standard insurance products will either not provide cover or might place restrictions on cover for rented property and/or its contents.
A failure to inform your insurer that you are renting/letting a property could invalidate any subsequent claim. It is for a landlord to insure the building and his contents, fixtures and fittings.
The tenants are responsible for insuring any of their own possessions.
5. RENTAL
We will agree with you a rent to be quoted to potential tenants. Unless specifically agreed otherwise, this will include all payments for which you are responsible, such as ground rents, maintenance, management fees for communal cleaning etc. The quoted market rental figure does depend on the time of the year the property is available and how the property is presented.
5.1 Type of let
We advise;
- Fully Furnished, the usual definition is: carpets and curtains, table and chairs, sofa, bookcases, white goods in the kitchen, cutlery, crockery and cooking equipment, beds (with mattress covers), wardrobes and chest of drawers. We do however, recommend that only the bare essentials are left in the kitchen. We also recommend that all personal belongings (including papers) are removed from the property. This includes duvets, pillows, towels, pictures and photographs
- Part Furnished: carpets and curtains, table and chairs, sofa, beds (with mattress covers), wardrobes and white goods.
- Unfurnished: Carpets, curtains and white goods.
NOTE: All furniture and furnishings have to comply with Furniture and Furnishing Regulations of 1998
5.2 Décor and condition
The landlord is required to ensure that the property and all contents are in a reasonable state of repair. The landlord bears the responsibility of ensuring that all structures comply with the relevant building regulations, that all services have been correctly installed and are operational, and that all equipment is safe to use and fit for purpose.
6. CLEANING & PRESENTATION
You agree that prior to the commencement of the tenancy that the property will be thoroughly cleaned throughout and that such cleaning includes both the interior and exterior of the windows.
We can arrange for professional post-tenancy cleaning and professional carpet steam cleaning on your behalf if requested to do so. Under our management service Option 1, there will be NO additional charge for the co-ordination of this service. We strongly believe a clean property reduces void periods.
7. ADVERTISING BOARD
You agree that Letmove.com has the authority to erect a board (subject to restrictions imposed by statute, you or, if appropriate, the freeholder or mortgagee) upon or in the garden of the property advertising that the property is available for letting. It may be more appropriate to advertise internally for example window or balcony, if so, by signing this document you also agree to this part of Letmove.com’s advertising strategy on your behalf.
8. ADVERTISING
General advertising of the property as stated in the service Options 1 - 4 is included as standard within our fee. Should the landlord require additional individual advertising, a charge is payable.
9. KEYS / PROPERTY ACCESS
You must supply us with THREE SETS of keys, to include garage, meter cupboard, shed and window keys, at our place of business when instructing us to act on your behalf. Please ensure each set is clearly identifiable. Good key organisation will help us co-ordinate efficiently any contractors’ work/safety checks, cleaning and potential viewings etc that you instruct us to carry out. If only one or two sets are provided, we may need to have other sets cut at your expense. Please complete the Key Inventory at the rear of these Terms and Conditions to register keys you hand over to us.
Key collection and or cutting can be arranged on your behalf and is chargeable to you at £10+VAT plus the cost of any keys to be cut.
10. SECURITY
Having a burglar alarm is not compulsory but it may be a facility that a prospective tenant would look for.
We would advise that all external doors be fitted with five lever mortice locks. It is also advisable to ensure that all windows capable of being opened are fitted with window locks. This is often a requirement of household insurance.
11. OFFERS AND SUITABILITY OF TENANTS
11.1 We will not generally accept an offer on a rental property that has not been viewed either by the applicants themselves or by a suitably authorised representative of the application eg an appointed relocation agent or direct associate.
11.2 We will inform you as soon as is reasonably practicable about offers received on a property up to the point where tenancy agreements are signed.
11.3 We will take up references on each applicant and make reasonable enquiries about the credibility of prospective tenants or guarantors, but we cannot guarantee their suitability.
11.4 Once the references are received we will proceed with the letting, provided we have received a signed copy of this agreement and the necessary funds. When we do so, we will not be warranting the tenant(s) as suitable.
11.5 If tenant(s) propose to pay 6/12 months rental upfront, we will request your written instruction on how you wish to proceed regarding the referencing of the tenant(s).
12. SAFETY OF TENANTS
Landlords must ensure that all the necessary safety issues including, but not limited to those set out below, are complied with and the certificates produced as these need to be handed to the tenants at the start of the tenancy.
12.1 Safety regulations
Warning: Landlords should understand their obligations with regard to safety regulations prior to signing this agreement.
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 (as amended from time to time) apply:
-
Furniture and Furnishings (Fire) (Safety) Regulations 1988 and the Fire and Furnishings (Fire) (Safety) (Amendment) Regulations 1993
You warrant that the property is in a good rentable condition and that the property, furniture and furnishings (including mattresses, sofas, chair sets and other soft furnishings) conform to the Furniture and Furnishing (Fire) (Safety) Regulations 1988 as amended in 1993 and any subsequent amendments or re-enactments thereof. It is a criminal offence to let premises with furniture and/or soft furnishings which do not comply with the above safety regulations. By signing this agreement, you authorise us to remove any item that does not have a fire regulations label attached to it.
It is your responsibility to ensure that the furniture and furnishings in the premises to be let comply with the above regulations.
-
General Product Safety Regulations 1994
It is the landlord’s responsibility to ensure all supplied goods within the property are fit for the intended purpose and are safe for everyday use.
-
Gas Safety (Installation and Use) Regulations 1998
A valid Landlord Gas Safety Certificate is required by law and no tenancy can commence unless we are in possession of a valid certificate.
As a landlord, it is your responsibility to ensure you supply the tenant at the commencement of the tenancy with a valid Gas Safety certificate issued by a qualified gas engineer registered on the Gas Register, to comply with the Gas Safety (Installation and Use) Regulations 1998. You must also ensure that annual safety checks are carried out on all gas appliances where applicable and their flues. Records of these checks must be kept and must be supplied to tenants upon entry to the property within 28 days of the inspection to an existing tenant. We will require a copy of a Gas Safety Certificate at the commencement of the tenancy. We can arrange Landlords Gas Certificates from as little as £55.00+VAT – Please contact our office for further details.
-
Electrical Equipment (Safety) Regulations 1994 & Plugs and Sockets (Safety) Regulations 1994
You are responsible for compliance with the Electrical Equipment (Safety) Regulations 1994 and the Plug and Socket Regulations 1994 which require that any person supplying electrical equipment must ensure that it is safe and will not cause damage and satisfies the safety requirements of the 1994 Regulations. From 01 January 1997, all new electrical appliances must carry a CE mark and instruction booklets, or clear working instructions must be provided. You are responsible for providing instruction books for all items of electrical equipment for your tenant. All new and second-hand electrical equipment which you supply in this property must be fitted with an appropriate fitted and fixed plug containing the correct fuse. Although there is no mandatory requirement to safety test or test by an approved contractor or to test plugs and sockets we recommend that best practice dictates here and that it would be prudent to do so and could provide vital evidence in any future litigation.
-
Smoke and Carbon monoxide alarms
Smoke Alarms - Legislation provides that all new homes built after June 1992 must be fitted with mains operated smoke detectors. We strongly recommend that you fit smoke detectors in the property subject to this agreement.
Carbon Monoxide Alarms are also strongly recommended to be fitted at the property to protect your tenant(s) from harmful, non visible, non smelling, non tasting lethal fumes.
Both these alarms must be regularly checked, especially battery operated devices.
The landlord confirms that he is aware of his safety obligations and that the agent has provided sufficient information within this agreement to assist with compliance. Other information for landlords letting residential property can be found at www.directgov.co.uk. It is agreed that the landlord shall ensure that the property is made available for letting in a safe condition and in accordance with the above regulations (as amended from time to time). The agent shall ensure that all relevant equipment has been checked at the beginning of the tenancy or during the tenancy as required. The landlord agrees to repay the agent’s costs in incurring any reasonable expenses or penalties that may be suffered as a result of non-compliance of the property to fire and safety standards.
In the event that the property, furniture, gas and / or electrical equipment do not comply with current legislation then we will refuse to let or manage the property until non-compliance is rectified by the landlord at his / her expense.
13. ENERGY PERFORMANCE CERTIFICATE (EPC)
With effect from 01 October 2008 new legislation was introduced affecting the lettings industry. Every landlord must now commission and obtain an Energy Performance Certificate (EPC) from a registered EPC assessor for all new residential tenancies. The EPC legislation includes fixed penalties for landlords who fail to provide an EPC to prospective tenants before viewing a property or signing a new tenancy agreement. The fixed penalty fine is currently £200.00 per dwelling (subject to change). Local Authority Trading Standards is the enforcement authority.
An EPC advises tenants about the energy performance of a building and the certificate resembles those now provided with domestic appliances such as refrigerators and washing machines. All EPC’s come with a recommendation report and will advise on improvements a landlord can make to save money and energy. An EPC report is valid for 10 years. This information should be provided to all prospective tenants.
All landlords are required to obtain an EPC which must be readily available for prospective tenants when viewing. Should an EPC not be provided to Letmove.com prior to commencement of a tenancy, following reasonable attempts to obtain it, Letmove.com reserves the right to charge an administration fee of £25.00 for instruction to an EPC provider to undertake an EPC for this property in addition to the standard EPC charges relative to your property.
The agent reserves the right not to advertise the property unless the agent is in possession of a current EPC.
Further information can be found at the Communities and Local Government website www.communities.gov.uk/epbd.
14. HOLDING FEES & DEPOSITS
A holding fee of £100 will generally be taken from a tenant applying to rent a property. The purpose of the fee is to verify the tenant’s serious intent to proceed and to protect the agent against any administrative expenses (such as the taking of references, conducting viewings and 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 to be unsuitable. Early acceptance of rent payments from the applicant(s) would not be advisable until satisfactory references have been received. Landlords should notify the agent should they require a larger security fee or deposit to be taken to protect against loss of rents, or insurance undertaken.
Upon signing the tenancy agreement on Option 1 Premier Property Management, the Agent will take a dilapidations deposit from the tenant(s) in addition to any rents due. The purpose of the dilapidations deposit is to protect the landlord against loss of rent or damage to the property during the tenancy itself. The dilapidations deposit will be held by the agent as stakeholder in a separate and secure client account ready for refunding (less any agreed charges due) at the end of the tenancy.
If you as the landlord decide to hold the deposit yourself, we will transfer it to you within 5 days of receiving it. You 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 you in the County Court. The Court will make an order stating that you must pay the deposit back to the tenant or lodge it with the custodial scheme which is known as the Deposit Protection Service. In addition a further order will be made requiring you to pay compensation to the tenant of an amount equal to three times the deposit. You will be unable to serve a Section 21 Notice on your tenant until compliance with the above conditions and the Court will not grant you/the landlord a possession order. The agent has no liability for any loss suffered if you fail to comply.
14.1 The Tenancy Deposit Scheme (TDS) – PRESCRIBED INFORMATION
The agent is a member of the Tenancy Deposit Scheme, which is administered by:
The Deposit Protection Service
The Pavilions
Bridgwater Road
Bristol
BS99 6AA
Phone 0844 4727 000
www.depositprotection.com
email enquiries@depositprotection.com
If we, the agent, is instructed by you, the landlord, to hold the deposit we shall do so under the terms of the Tenancy Deposit Scheme.
The agent holds tenancy deposits as stakeholder and any interest earned will belong to the agent.
ADDITIONAL DEPOSIT INFORMATION FOR LANDLORDS WHO WISH TO HOLD DEPOSITS THEMSELVES OUTSIDE THE TDS
1. If you/the landlord decide to hold the deposit yourself, we will transfer it to you within 5 days of receiving it. You 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 you/the landlord in the County Court. The Court will make an order stating that you must pay the deposit back to the tenant or lodge it with the custodial scheme which is known as the Deposit Protection Service. In addition a further order will be made requiring you to pay compensation to the tenant of an amount equal to three times the deposit. You will be unable to serve a Section 21 Notice on your tenant until compliance with the above conditions and the Court will not grant you a possession order. The agent has no liability for any loss suffered if you/the landlord do not comply.
OR
2. If you/the landlord decide to hold the deposit and the tenancy is an Assured Shorthold Tenancy, you/the landlord must specify to the agent prior to the start of the tenancy by which other Tenancy Deposit Protection Scheme the deposit will be covered. If the deposit is covered by Tenancy Deposit Solutions you 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) 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 nine days. We will also provide details of the scheme and other information required by law to the tenant about refunding the deposit at the end of the tenancy.
14.2 Tenants’ Deposit Registration
We register tenants'deposits with The Deposit Protection Service (DPS) for our Option 1 Premier Property Management Service only. We do not ccept or register tenants' deposits for our Option 2 Let Only or Option 3 Find Tenant Service.
14.3 At the end of the tenancy covered by the Tenancy Deposit Scheme
The agent must tell the tenant within 10 working days of the end of the tenancy if they propose to make any deductions from the deposit.
If there is no dispute the agent will keep or repay the deposit, according to the agreed deductions and the conditions of the tenancy agreement. Payment of the deposit or any balance of it will be made within 10 working days of the landlord and the tenant agreeing the allocation of the deposit.
i. the amount of the deposit repayment of which is agreed; and
ii. the amount of the deposit repayment of which is not agreed.
If a landlord has no current address for the tenant or the tenant fails to respond to the landlord’s written notice requiring that the landlord be paid some or all of the deposit within 14 calendar days of the end of the tenancy, the landlord may follow the DPS Single Claim Process (see Sections 20 to 22). The Single Claim Process – Statutory Declaration form can be obtained by telephoning 0844 4727 000 or sending an e-mail to enquiries@depositprotection.com.
If a Tenant has no current address for the landlord or the landlord fails to respond to the tenant’s written notice asking whether the landlord accepts that the tenant should be paid some or all of the deposit within 14 calendar days of the end of the tenancy, the tenant may follow the Single Claim Process (see Sections 20 to 22). The Single Claim Process – Statutory Declaration form can be obtained by telephoning 0844 4727 000 or sending an e-mail to enquiries@depositprotection.com.
14.4 Dilapidations deposit Option 2 Let Only service
In the case of Let Only properties, where a landlord decides to hold the deposit and the tenancy is an Assured Shorthold Tenancy the landlord is responsible for lodging the deposit with their chosen Government approved Tenancy Deposit Protection Scheme. The tenancy deposit protection schemes available to the landlord are:
- Deposit Protection Service (DPS)
- My Deposits
- The Dispute Service (TDS)
You are asked to supply evidence of your chosen deposit scheme upon commencement of letting your property with Letmove.com and your landlord registration number will be required before marketing commences.
15. PROPERLY PREPARED FULL INVENTORY/SCHEDULE OF CONDITION
The agent draws your attention to the necessity and benefit of a correctly prepared full written inventory/schedule of condition backed up with photographic evidence. This is to help ensure you, the landlord, can provide documented and photo evidence of property and/or contents’ condition, if a challenge or claim should arise by a tenant or third party during, or at the end of a tenancy.
A properly prepared full inventory and Schedule of Condition is essential for the proper management of your premises (furnished or unfurnished) to reduce the risk of a dispute arising in respect of the tenants’ security deposit and to show compliance with current legislation regarding furnishings and electrical equipment.
15.1 The agent will arrange a full inventory/schedule of condition in respect of unfurnished and furnished properties for Option 1, Premier Property Management service.
15.2 Instructions on a Let Only Service, an inventory/schedule of condition can be carried out for an extra charge from £55.00+VAT. (Refer to our office for further details regarding current fees which are subject to amendment.)
If you are preparing the inventory/schedule of condition report, we must receive the said form at least 3 days prior to the commencement of the tenancy; otherwise we reserve the right to instruct an in-house inventory clerk to compile an inventory and schedule of condition on your behalf in line with prevailing charges. (Refer to our office for further details regarding current fees, which are subject to amendment)
16. TENANCY AGREEMENT AND CHARGES
You will need a comprehensive tenancy agreement setting out the rights and obligations of both parties. Where the tenant is an individual, rather than a company, you will also need to have regard to the Unfair Contract Terms 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.
We include a fully completed and signed tenancy agreement within Options 1, 2 and 3.
Our tenancy agreement reflects the most current changes to the law and we can provide you with a copy of this agreement, arranging for its completion and exchange. There is a separate charge of £65.00 + VAT to the landlord for this service if required for Option 3, Tenant Find service.
If you choose to provide us with your own tenancy agreement, we must receive written instructions and your agreement at least three days prior to the commencement of the tenancy if you wish to instruct us to arrange signing and completion of contracts on your behalf. There is a separate administration charge of £25.00 + VAT for this service. If we do not receive a contract from you three days prior to the commencement of the tenancy, we reserve the right to use our own agreement and charge £65.00 + VAT.
17. ASSURED SHORTHOLD TENANCY AGREEMENT
If the applicant is an individual and the net rent is less than £25,000 per year, we will use an Assured Shorthold Tenancy Agreement (ASTA). There is no longer a minimum period for such lettings. However, if the tenant fails to surrender possession at the expiry of the term (and in accordance with Section 21 Notice) you will need a possession order. No such order can expire within the first six months of the commencement of a tenancy.
A standard form of Tenancy Agreement is used. A charge for this is incorporated in the letting fee for service Options 1 to 3. We would point out that we cannot offer you formal legal advice and recommend that you consult your solicitor should you require further information on your legal position as a landlord.
Options 1 and 2 include the preparation of a tenancy agreement in the agent’s standard form and provision of a copy of this agreement to a designated advisor or building society if so required. Any further agreements provided will be chargeable at £35.00 + VAT. In the event of the landlord, advisors or mortgagees requiring amendment of the contract or requiring the agent to enter into further work or correspondence, the agent reserves the right to charge additional fees, such fees to be agreed between the parties to the agreement, our current standard contract amendment fee being £35.00 + VAT. It is further agreed that the agent may sign the tenancy agreement on behalf of the landlord in the capacity of agent.
18. COMMON LAW AGREEMENT
If the net rent payable is £25,000 or more per year or at a proportionate level for a shorter tenancy, the tenancy agreement cannot be an Assured Shorthold. You will need to use a Common Law Agreement. Although this is not governed by the Housing Act 1988 it is nevertheless subject to statutory regulation (eg Protection from Eviction Act 1977) which means you must obtain a possession order from the County Court before a tenant can be evicted.
19. INSPECTIONS
Under Option 1, the agent will normally carry out inspections quarterly starting at the third month following the commencement of the tenancy. It is not the intention of the agent to check every item of the inventory at this stage as the inspection is concerned with verifying the good order of the tenancy and the general condition of the property. The inspection would normally include inspecting the main items (carpets, walls, cooker, main living areas and gardens). In the event of these being in an unsatisfactory condition, a more detailed inspection would be made.
On the departure of the tenants, a final inspection of the property will be carried out by the agent. The testing of all electrical appliances, heating system and plumbing is not feasible during this inspection and the agent advises the landlord to appoint a qualified contractor for this purpose should the landlord require such tests to be carried out.
NOTE: If you or your representative(s) wish to inspect the property before we agree the condition with you and/or return the deposit held to the tenant, you must do so the day after the tenant vacates the property and inform us before the tenancy termination date of your intention to do so. Strict legal deadlines for resolving tenants’ deposits apply.
20. TENANCY RENEWALS
Two months prior to the expiry of any fixed term Assured Shorthold Tenancy Agreement contract, we will write to the landlord and tenant to enquire and establish an extension of tenancy:
- Extend the tenancy on a month-to-month rolling periodic basis
- Renew the tenancy for a further fixed term Assured Shorthold Tenancy Agreement Contract of a 6 or 12 month term. A 6 month break clause* can be added within the 12 month term Assured Shorthold Tenancy agreement Contract by the landlord instruction to the agent in writing.
- Whether they intend leaving at the end of the current term
*A break clause gives the landlord and tenants an option to give written notice during the fixed term of a tenancy, and thereby end the tenancy early. A minimum of 6 months term must have passed.
20.1 Issuing a new fixed term AST agreement
When we write to the tenant we will propose a rent that reflects the current market conditions and if the tenant asks for a new fixed term tenancy, we will insert the new figure into that agreement, once all details are agreed with you and you confirm for us to proceed in writing.
20.2 Periodic tenancy and rent increases
If the tenant has a Shorthold Tenancy Agreement Contract and continues to extend the tenancy on a month-to-month rolling periodic basis then the rent can only be lawfully increased if we serve the tenant a valid notice under section 13(2) of the Housing Act 1988. This notice advises the tenant that they have the right to challenge the increase by serving you a counter-notice ultimately referring the increase to the Rent Assessment Committee. This could result in a hearing.
20.3 Fees for a new assured shorthold tenancy agreement contract
If the letting term with the existing tenants continues for a period exceeding the original term agreed in the original tenancy agreement or you grant a continuation, extension or renewal of the term originally granted, our fee will be subject ot the minimum fee conditions as set out below for the renewal of a term with existing tenants. This fee reflects the value added through us in sourcing tenants for the period extending the original term and the benefit you receive of avoiding any rental void time.
If, however, a new agreement is to be drawn up for a change in the constitution of the original tenants as outlined on the original agreement, and specifically this includes substitutions and/or new tenants introduced by the existing tenants, then our commission will be payable as set out below and calculated for the new period in question.
20.4 Termination, extension or renewal of tenancies
All tenancies must be terminated by serving the tenant with a valid notice whether the initial term is fixed or or otherwise. This is because at the expiry of the initial term, the tenancy will automatically roll on from month-to-month which is called a periodic tenancy - generally upon the same terms and conditions (including rent) unless and until you serve the tenant with a valid notice or the tenant voluntarily surrenders possession.
Where administration fees are applicable, they are outliend below:
If you would like to offer the tenant a new fixed term Assured Shorthold Tenancy Agreement Contract we can provide you with any of the following:
- Renew the tenancy with a further fixed term Assured Shorthold Tenancy Agreement Contract with either a 6 or 12 month term. If the tenant(s) require(s) a further fixed term Assured Shorthold Tenancy Agreement Contract a £35+VAT administration fee is payable by the tenant. Should the tenant(s) refuse to made payment for a further fixed term Assured Shorthold Tenancy Agreement Contract of 6 or 12 month term, the agent will contact you as the landlord(s) to discuss your options further. If you still wish for your tenant to renew for a further fixed term Assured Shorthold Tenancy Agreement the £35+VAT administration will be payable by you, the landlord.
- The option of a periodic tenancy as described above is avsailable which attracts no fees for either the landlord or the tenant.
- For an addendum (ie a change or addition to the present Assured Shorthold Tenancy Agreement during the existing term of the tenancy only) a £35+VAT administration fee is payable by the party requiring the change(s) which could mean either the landlord or the tenant.
- A memorandum of renewal may change some of the existing Assured Shorthold Tenancy Agreement terms (eg rent) and a £35+VAT administration fee is payable by the landlord
- For a single replacement tenancy agreement document a £35+VAT administation fee is payable by the person requesting a replacement copy of the current AST agreement.
21. SERVING NOTICE TO THE TENANT
Unless the tenant voluntarily surrenders possession of the premises, it will be necessary to serve the tenant with a valid notice.
If we are not managing your premises under Option 1, we do not serve notice on your behalf. If, however, you wish us to do so (including notice under section 21 of the Housing Act 1988) which is required to gain possession of a property let on an Assured Shorthold Tenancy Agreement (ASTA) if the tenant is not in breach, we can do so upon written request and payment of our admin fee of £35.00+VAT for this service. You must request us to do this at least 10 weeks before you wish to regain possession. We cannot be held responsible for any delay in regaining possession if you fail to give us sufficient warning of your instruction to serve the tenant with the required notice.
In certain circumstancs we may recommend that you instruct specialist solicitors to serve the notice on your behalf.
If the tenant fails to comply with a notice, you will need to commence County Court proceedings to obtain a possession order. More information on possession procedure is available from your local County Court or www.hmcourts-service.gov.uk or www.direct.gov.uk/landlord
22. VOID PERIODS
The management function does not include the supervision of the property when it is not let, although in the course of finding a tenant, periodic visits may be made to the accommodation by allowing staff to accompany prospective tenants.
Our management service does not come into effect until a tenant or tenant(s) have taken up occupancy.
23. EMPTY PROPERTY
Periodic inspections required by the landlord when the property is vacant are charged at £15.00 + VAT per visit.
24. REASONABLE COSTS AND MAINTENANCE
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 their duties effectively, the landlord agrees to respond promptly with instructions where necessary to any correspondence or requests from the agent.
24.1 Maintenance
The landlord agrees to provide the letting property in good quality condition and the property, beds, sofas and all other soft furnishings conform to the current fire safety regulations. The landlord agrees to make the agent aware of any ongoing maintenance problems. Under Option 1, the agent can arrange maintenance, subject to a set monthly expenditure limit without prior landlord consultation. This can be on any single item, repair or any other requirements within limits agreed between landlord(s) and agent. The agent will administer any miscellaneous maintenance work that needs to be carried out on the property in accordance with the principles below (although the administration of major works or refurbishment will incur an additional charge).
- The agent shall agree with the landlord a set amount for repairs on the property of up to and including £100.00+VAT and will proceed with any work required up to this amount.
- For repairs in excess of £100.00+VAT, the agent shall obtain the landlord’s approval to seek estimates for the work to be carried out by the agent’s nominated contractors
- For repairs in excess of £100.00+VAT the landlord may request the agent liaises with the landlord’s nominated contractors to carry out repairs and maintenance.
- For expenditure in excess of £100.00+VAT, the agent would normally request authorisation in advance, although it is agreed that in an emergency or for reasons of contractual necessity where reasonable endeavours have been made to contact the landlord, the agent may reasonably exceed the limits specified.
- In the case of emergency (eg fire or flood damage, damage to sanitary fittings), the landlord consents to the agent instructing contractors to carry out such emergency work necessary to repair and protect the landlord’s property, without prior consultation.
- Unless agreed in writing, the agent will pay current outgoings and the cost of repairs on behalf of the landlord from monthly rent collected.
- Should there be insufficient monies in the monthly rental income to cover the cost of the repairs, the agent may request the landlord to pay a sum up front to cover the relevant costs.
- If major repairs are required (ie over £250) and you wish us to organise the work, we reserve the right to charge an additional administration fee of 10%+VAT of the total cost of the work.
24.2 Section 11 of the Landlord and Tenant Act 1985
Sections 11 and 16 of the Landlord and Tenant Act 1985 impose important obligations upon landlords not only to keep the structure and exterior of the property including drains, gutters and external pipes in repair but also to keep in repair and proper working order the installations in the property for the supply of water, gas, and electricity for sanitation. This obligation includes basins, sinks, baths and lavatories but does not include fixtures and fittings for making use of the supply of water, gas, electricity supplies although the landlord is required to keep installations in the property for space heating and heating water in repair and proper working order.
By law, it is necessary to carry out an annual inspection and service for the central heating and any gas appliances. The agent may carry out this 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 where appropriate.
In the event that we do not receive contrary instructions from you in writing within 7 days, we will proceed with your full authority to act as we deem appropriate having, regard to your contractual and statutory obligations.
We will not pay for any outgoings where we do not hold sufficient funds from you to do so, even in the event of emergencies.
25. RENT PAYMENTS / RENT ARREARS AND BREACHES OF COVENANT
If we are collecting your rent under Options 1 or 2, we will endeavour to forward it to you, net of our fees, within 10 working days of receipt, but will not be liable for any loss that may occur for any delay in your receiving the rent.
We cannot be held responsible if the tenant(s) fail to pay their contractual rent. We will, however, take such action in your name as required to recover rent arrears by serving the appropriate rent payment reminder letters to your tenant’s home address.
If rental payments are not made and arrears begin to accrue, then we recommend you speak to a solicitor who is a specialist in this field. The solicitor would need to serve the appropriate letter(s) and if applicable the statutory notice(s) to your tenant’s home address or registered office if your tenant is a company.
It is your responsibility to take all necessary steps to ensure that actions are taken to protect your interests, including instructing solicitors and commencing legal proceedings to preserve your rights and recover arrears of rent and to defend all actions or other legal proceedings and arbitrations that may be brought against you in connection with the premises. All costs incurred in this regard, including legal costs and expenses, will be payable by you.
26. TAXATION
As a landlord, you will be liable for tax on rental income and you must inform the Inland Revenue that you are letting the premises. There are a number of allowances that you can claim against this rental income and you should seek advice on these from your accountant.
The Inland Revenue has special rules regarding the collection of tax on rental income if you are a landlord resident overseas or you subsequently move abroad.
27. NON-RESIDENT OR OVERSEAS LANDLORDS
If you are a non-resident landlord (NRL), it is your responsibility to obtain a tax approval number from Inland Revenue. Only then can your rental income gross of any tax deductions be sent to you. Without this exemption certificate, we are obliged to withhold tax on your behalf as a non-resident landlord for the Inland Revenue. If it ever appears that we will be assessed by the Inland Revenue as responsible for collecting any taxation from you as an overseas landlord, at source, we will set aside monies from the rent to meet our potential liability to the Inland Revenue. We cannot undertake to meet any tax claims or returns, or negotiate with the Inland Revenue on your behalf. If you are/or will become a non-resident landlord please inform us.
When letting property and collecting rents for landlords resident overseas, the agent is obliged by the Taxes Management Act (TMA) 1970 and the Taxation of Income from Land (Non-Residents) Regulations 1995 to deduct tax (at the basic tax rate) to cover any tax liability, unless the landlord has been authorised in writing by the Inland Revenue to receive rent gross. In this situation, the agent also requests 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. The agent reserves the right to charge a standard annual charge to be made for the administration work or further work carried out at the request of the landlord, the landlord’s accountant or the Inland Revenue in connection with such tax liabilities. In many cases, the landlord’s tax liability is minimal when all allowable costs are deducted.
28. COUNCIL TAX
Payment of council tax will normally be the responsibility of the tenants in the property. However, 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.
29. UTILITIES
It is your responsibility to notify the electricity, gas and water service providers of the change in occupation when you vacate the property and settle any outstanding utility charges up to and including the date upon which the tenant occupies the premises and for any void period between tenancies.
We can assist with this only where you have provided us (in writing) with the contact details of your utility suppliers and the account numbers, as well as your new address and the meter readings at the commencement of the tenancy.
The agent will endeavour to take meter readings whenever possible at each change of occupation in the property and inform the service companies (electricity, gas and water) of these readings and change of occupation. However, in many cases the service companies require that the new occupier formally requests and authorises the service and it is not possible for the agent to do this on the tenant’s or landlord’s behalf.
30. MAIL
It is not part of our normal function to forward landlord mail; therefore, no responsibility can be taken for mail sent to your premises. We recommend that you arrange for your mail to be redirected via the Post Office.
If we receive your mail at our offices, we can handle such mail for you if requested to do so in writing, otherwise all mail will be returned to sender – marked/stamped – ‘no longer at this address’.
We reserve the right to open such mail on your behalf in order to contact you in respect of any important items requiring your attention and/or action.
We cannot act on your behalf in connection with any dispute arising from such mail and accept no responsibility in the event of any dispute.
31. RE-MARKETING / RE-INSTRUCTION
31.1 Fees;
In respect of remarketing a property following vacation of tenants, the following reduced fees will be charged in recognition of your continuing business with Letmove.com;
- Option 1 - Premier Full Property Management Service - a fee of £75.00+VAT.
- Option 2 - Let Only Service - £225.00+VAT.
31.2 Sole letting rights
It is agreed that only the agent may let the property.
32. VALUE ADDED TAX
It is agreed that the agent will charge VAT on the management fees at the prevailing rate where appropriate.
33. 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.
34. REIMBURSEMENT OF AGENT
You will keep the agent reimbursed in respect of any damage claims or liability, whether criminal or civil, suffered from and during the time that we are or were acting on your behalf. For the avoidance of doubt, we reserve the right to have work carried out on your behalf and to charge you for that work to ensure that you fulfil your contractual and statutory obligations as landlord.
35. INDEMNITIES
The landlord agrees to indemnify us as agent 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. We therefore recommend a landlord should prudently arrange insurance cover in respect of such matters for the term of the tenancy. We can provide necessary information in this regard.
Every endeavour will be made to ensure the landlord has the protection allowed in law to enable him to obtain possession of his property. In addition, every effort is made to provide a satisfactory tenant but no responsibility/liability can be accepted by the agent for damage caused to property or for rental loss.
36. LEGAL PROCEEDINGS
It is agreed that any delays in payment or other defaults by the tenant will be acted on by the agent in the first instance. Where the agent has been unsuccessful in these initial actions, or where there are significant rent arrears or other breach of the tenancy agreement, the landlord will be advised accordingly. A solicitor may then be instructed by the landlord. In the event of the agent being unable to contact the landlord after making all reasonable attempts to do so, the agent is authorised to instruct a solicitor on the landlord’s behalf where necessary. The landlord is responsible for payment of all legal fees and any related costs.
37. LOCAL HOUSING ALLOWANCE (LHA)
Local Housing Allowance is a benefit paid to individuals who wish to rent a property but who do not have sufficient income to support the contractual rent. LHA is means-tested and is subject to a number of regulations limiting its scope. It is administered by the local authority but the “market rent” ie the rent used to establish the appropriate benefit level, is set by the Rent Officer Service. We advise landlords to accept as the contractual rent the market rent set by the Rent Officer.
You agree to repay us if we receive Housing Benefit payments for your tenant but then the local authority decides those payments have been overpaid and we have to repay them to the local authority. You also agree to pay our reasonable costs and fines if we are prosecuted for managing a house in multiple occupation because you have not got a licence where one is needed unless this was an error by the agent. A house in multiple occupation is one where there is more than one household living at the property and the Council has a landlord licensing scheme that requires the property to have a licence.
However, if rent is paid to us directly by a local authority, this is usually paid 2 weekly, often up to 8 weeks in arrears. Rent collected is held in our dedicated clients bank account. No interest is payable for rents hold on account.
This undertaking shall remain in force during 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.
If you accept a tenant who is in receipt of Local Housing Allowance, you may expect benefit payment in arrears.
38. SALE OF THE PROPERTY
Our introduction of a prospective tenant to a property can lead to its purchase by the tenant or sale to someone on the tenant’s behalf. Our fee for the service selected by you does not fairly represent the benefit to you of our introducing a purchaser to your property. In recognition of the gain you make by selling the property under such circumstances, you must pay us a fair fee of £500+VAT on completion of the sale.
If we have introduced the tenant to your property, your obligation to pay this fee continues even after the agreement ends and the sums due under this clause become payable upon completion of the sale.
If the property is sold to someone other than the tenant introduced by us, with the benefit of a tenancy, Letmove.com property fees remain the responsibility of the original landlord for the duration of the tenancy and for any extensions or renewals, irrespective of whether the negotiations were carried out by us or not.
39. INTEREST ON CLIENT MONEY
Any interest accrued or earned on the client money which we hold, will be retained by ourselves to cover bank and administration charges.
40. CHANGES TO TERMS AND CONDITIONS OF BUSINESS
We reserve the right to change these Terms of Business and will give you written notice of the change. If the change is to your disadvantage, you may end this agreement by giving us at least 28 days written notice. Where appropriate, new Terms & Conditions of business may require signing and dating by both parties.
41. TERMINATION / WITHDRAWAL
This agreement may be terminated by either party by way of one months’ written notice. A minimum fee of £75.00+VAT will apply if on termination or withdrawal (even if the agent has not found suitable tenants to offset against all advertising costs incurred during the period that the property has been available to let, any internet and newspaper advertising, the erection of a To Let board/sign at the property) the total fees due are less than any agreed minimum fee. In the event of this Agreement being terminated whilst the tenancy continues, a fee equivalent to 50% of one month’s rent, plus VAT at the prevailing rate, shall become payable to the agent.
Where termination of the 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 termination.
The landlord shall instruct the agent, preferably in writing, with any requirements for return and possession of the property at the earliest opportunity. Landlords should be aware that any tenancy agreement entered into on the landlord’s behalf is a legally binding agreement for the term agreed. Details of any tenancy agreement entered into will be communicated to the landlord as soon as possible. Landlords should be aware that the minimum legal 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.
42. INSTRUCTION OF AN AGENT
By signing and returning these Terms and Conditions, you irrevocably instruct us to act on your behalf as your agent with your full authority to sign or execute, on your behalf, all documents necessary to carry out the effective letting and/or management of your premises.
. The agent is entitled to full commission if they let the said property, whether instructed verbally or in writing for avoidance of doubt.
43. ACTS OF THIRD PARTIES
We will not be responsible for any loss or damage that you suffer through the act, default, or negligence, breach of contract or failure on behalf of the agent.
44. COMPLAINT HANDLING
In the unlikely event that any of our clients have an issue to raise relating to our services, we have a Complaints Handling Procedure in place. This is available on request.
45 DEFINITIONS
In this agreement, the use of the singular includes the plural and the use of the masculine, includes the feminine.
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 under this agreement both individually and together.
46. PROPER LAW AND JURISDICTION
These Terms and Conditions shall be governed by and construed in accordance with the law of England and Wales.
