Landlord Letting & Management Agreement – (All Service Levels).
This agreement is made between the Owner/Landlord(Landlord Name Here) , of the Property known as, (Enter Rented Property Address Here) ,and Sensis Property Management Ltd, who agree to act for the Landlord and are hereinafter referred to as “the Agent”. The purpose of this document is to set out clearly & concisely the extent of the letting and management service offered and the scale of fees charged.
The terms of the Agreement set out in this document will constitute a binding legal contract. If you are unsure of your obligations under this Agreement, then you are advised to seek independent legal advice before signing.
The Agent provides a property letting and management service to landlords wishing to let out their property. The standard fee for the service is taken as a percentage of the gross rent collected. A set-up fee may also be charged at the start of the tenancy for the taking of references and arrangement of the tenancy.
The Agent offers two standard service levels: Fully Managed Service and Tenant Finding Service. Details of these services and our Scale of Fees can be found at the end of this agreement.
Terms of Business...
The Landlord confirms that he/she/they, is/are the sole or joint owner(s) of the Property and has/have 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 the Property has been obtained from the mortgagee or relevant party.
The Landlord authorises the Agent to carry out the various usual duties of property management including those listed in the descriptions of the Service Levels at the end of this agreement. The Landlord also agrees that the Agent may take and hold deposits and comply with the requirements of any deposit protection scheme that may apply to the deposit. It is declared that the Agent may earn and retain any commissions on insurance policies issued, works carried out and interest on deposits held.
2. Liability for Tenant Default...
Although the Agent contracts to make every effort to ensure trouble-free management of your property, the Agent cannot be held responsible for late, insufficient or non-payment of rent, damage to the property by tenants, or any other associated costs incurred, where the Agent has acted correctly in accordance with the terms of this Agreement or on the Landlord’s written or verbal instructions. (We advise that an insurance policy is taken out to mitigate against this eventuality).
The Landlord agrees to indemnify 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 its duties effectively, the Landlord agrees to respond promptly, providing necessary instructions, to any correspondence or requests from the Agent.
The Landlord agrees to provide the Property in a good condition ready to let, and that the Property and all soft furnishings conform to the current fire & safety regulations.
The Landlord agrees to make the Agent aware of any ongoing maintenance problems.
The Landlord agrees to provide the agent with the following in respect of keys...
Two sets of keys for each external door to the property. The Agent reserves the right to have keys cut in the event that the correct number of keys is not supplied. The agent will make a charge to the Landlord for providing this service.
At least one window key, per storey of the property. The Agent reserves the right to have keys cut in the event that the correct number of keys is not supplied. The agent will make a charge to the Landlord for providing this service.
Two sets of keys for joint access areas, gates, or garage doors. The Agent reserves the right to have keys cut in the event that the correct number of keys is not supplied. The agent will make a charge to the Landlord for providing this service.
In the event that the property has pre-payment meters present, it is essential that the Landlord provides the relevant key/card for the utility provider to the Agent. In the event that the relevant key/card is not/can not be provided to the Agent, the Agent will source these items and charge the Landlord for providing this service.
Subject to a retained maximum expenditure limit of £200.00, 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. ‘Retained maximum expenditure limit’ means that the Agent has authority to spend up to this amount (or other amounts as individually agreed) on reasonable improvements or repairs in any single monthly accounting period without prior reference to the Landlord.
For expenditure in excess of the agreed limits, the Agent would normally request authorisation in advance. It is agreed that in an emergency or for reasons of contractual or legal necessity the Agent may reasonably exceed the limits specified, where reasonable endeavours have been made to contact the Landlord.
The Agent endeavours to select competent tradesmen at reasonable prices but is unable to personally guarantee the standard of workmanship or any liability arising thereof, although the Landlord retains the right to pursue any claim against appointed tradesmen for substandard work.
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 administer the necessary inspection and maintenance records. The costs involved will be debited from the Landlord’s account unless otherwise specified
If the property is vacant when adverse weather conditions occur, there may be frost damage to water or heating systems and sanitary appliances. The Landlord is strongly recommended to take all necessary action to protect the property from such risks or to instruct the Agent to put in hand any necessary works on the Landlord’s behalf. The Agent accepts no responsibility or liability for damage caused in these conditions. The Agent reserves the right to make a reasonable charge for this service.
5. Overseas Residents...
When letting property and collecting rents for landlords living overseas (non-UK resident landlords), the Agent is obliged by the Taxes Management Act (TMA) 1970 and the Taxation of Income from Land (Non-Residents) Regulations 1995 to deduct monies (at the basic tax rate) to cover any tax liability, unless the Landlord has been authorised in writing by HM Revenue & Customs to receive rent gross.
A copy of the NRL certificate must be provided to the Agent. In this situation, the Agent also requests that the Landlord appoints an accountant or allows the Agent the right to employ a suitably qualified accountant in order to manage correspondence with HMRC. A standard annual charge will be made for this work and administration expenses may be charged by the Agent for further work requested by the Landlord, the Landlord’s accountant or the Inland Revenue in connection with such tax liabilities. In many cases, a Landlord’s tax liability is minimal when all allowable costs are deducted.
6. 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. Under no circumstances will the Agent be liable to pay Council Tax on behalf of either the owner or the tenant(s).
The Agent will 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. In many cases, the service companies (e.g. BT) require that the new occupiers formally request and authorise the service and it is not possible for the Agent to do this on the tenant’s or Landlord’s behalf. Regarding mail, Landlords should take care to inform all parties (e.g. Banks, clubs, societies etc.) of their new address; it is not advisable to rely on tenants to forward mail.
Should it be necessary, the Agent will prepare an inventory for the Property and a charge will be made for this subject to the size of the inventory. The standard inventory will include all removable items in the Property (except those of negligible value) plus carpets, curtains, mirrors, sanitary ware and other articles that, in the opinion of the Agent, need regular checking.
Landlords should not leave any articles of exceptional value in the Property without prior arrangement with the Agent. The standard inventory service does not include a full schedule of condition (condition, colour & decoration of ceilings, walls, doors & fittings etc.) or photography; this can be prepared at the Landlord’s request and will incur further charges.
The Agent cannot accept any liability for omissions or errors on the inventory. The Landlord can provide the Agent with an inventory if preferred.
9. Tenancy Agreement...
All of our service levels include the preparation of a letting agreement in the Agent’s standard format. Should the Landlord, his advisors or mortgages 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. It is agreed that the Agent will sign the tenancy agreement(s) on behalf of the Landlord. The Agent would not usually supply a copy of the tenancy agreement to the Landlord.
Under our fully Managed Service, the Agent will normally carry out periodic inspections. It is not the intention of the Agent to check every item of the inventory at this stage; the inspection is concerned with verifying the good order of the tenancy (i.e. property 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 areas etc). Where these were felt to be unsatisfactory, a more detailed inspection would generally be made.
Following the departure of tenants, a final inspection of the Property is carried out by the Agent. Testing of electrical appliances, heating and plumbing is not feasible during this inspection; a qualified contractor will be appointed for this purpose should it be required by the Landlord. Any deficiencies or dilapidations which fall beyond the Tenant’s responsibility would normally be submitted to the Landlord for approval, together with any costs. It is agreed that the Agent’s judgement will be final in this matter.
11. Holding Fee...
Under certain circumstances, a holding fee may be taken by the Agent, from the 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 administrative expenses (taking out references, conducting viewings) 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 Agent where they wish a larger security fee or deposit to be carried to protect against loss of rents. If the tenancy proceeds, the holding fee will be used towards the deposit.
12. Tenancy Deposits...
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 dilapidations deposit is to protect the Landlord against loss of rent or damage to the Property during the tenancy itself. These deposits will be kept in a separate secure client account ready for refunding (less any charges due) at the end of the tenancy.
In accordance with Tenancy Deposit Legislation, the deposit will be administered in the appropriate manner. The Agent is a member of My Deposits, with whom any deposits collected by the Agent will be registered and protected within twenty-eight days. The Agent will not allow an arrangement whereby the Landlord retains or protects the deposit
The Agent will attempt, by negotiation, to resolve any deposit disputes between the Landlord and the Tenant. Where the deposit is subject to statutory tenancy deposit protection, and a dispute cannot be resolved between the parties, it will be necessary to submit the claim to the tenancy deposit administrators for adjudication under an Alternative Dispute Resolution (ADR) process. There will be an additional fee charged for administering the dispute.
The Landlord authorises the Agent to make appropriate deductions from the rental income in the last two months of the tenancy to provide a maintenance fund from which any cleaning, repair or other costs can be disbursed at the end of the tenancy.
13. Rent Collection...
On request the Agent will produce a Landlord statement showing a clear breakdown of all rental income received minus any items of expenditure, paying over the net balance to the Landlord by BACS.
It is agreed that any instruction from the Landlord to the Agent regarding termination, proceedings, major repairs, payment details or other significant details regarding the letting be confirmed to the agency in writing, or via e-mail... Text messages or verbal instruction will not constitute authorisation.
This agreement may be terminated by either party by way of two months’ written notice. A placement fee equivalent to one month’s rent will be payable where the Landlord intends to continue letting to tenants introduced by the Agent after the termination of this agreement.
In the event that the Landlord withdraws from this agreement prior to the Agent obtaining a tenant, the Landlord will be liable to pay advertising and inventory costs incurred by the Agent or £175.00 (whichever is the greater sum), except in the circumstances where the Agent has found a suitable tenant who has not yet taken occupation, in which case the Landlord will be charged a fee equivalent to one months’ rent.
If the landlord wishes to terminate the Agent’s management on any individual property, the Agency must be given one month’s notice. Failure to provide such notice will result in a fee being charged. The fee will be the equivalent of the management charge on a full month’s rent, regardless of whether the Property is let or vacant, and will be in addition to the termination fee stated above.
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 agreement being entered into will be communicated onto the Landlord as soon as requested.
Landlords should be aware that the legal minimum notice period to tenants under assured tenancies is 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. Safety Regulations Warning...
The Landlord should read and understand the following obligations before 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 electric appliances and installations within a property, and with respect to the safety of furniture and soft furnishings when also provided. The following regulations apply:
Furniture & Furnishings (Fire Safety) Regulations 1988 (amended 1989 and 1993)
• General Product Safety Regulations 1994
• Gas Safety (Installation and Use) Regulations 1998
• Electrical Equipment (Safety) Regulations 1994
• Plugs & Sockets (Safety) Regulations 1994
Energy Performance Certificate – (We cannot legally let a property without one)
The Landlord confirms that they are aware of these obligations and that the Agent has provided sufficient information (via explanatory leaflets available on request) to assist with compliance. It is agreed that the Landlord shall ensure that the Property is made available for letting in a safe condition and in compliance with above regulations. The Landlord agrees to indemnify the Agent against any expenses or penalties that may be suffered as a result of non-compliance of the Property in respect of the relevant fire and appliance safety standards.
The Landlord shall be responsible for the Property being adequately insured and that the insurance policy covers the situation where the Property is let, whether furnished or unfurnished. The Agent would normally be responsible for the administration of any claims arising during the period of management and would be subject to an additional charge.
18. Rent Guarantee & Legal Protection...
The Agent shall not be held responsible for any unpaid rent by the Tenant(s). Any Rent Guarantee & Legal Protection cover purchased will be the responsibility of the Landlord, and claims will be dealt with directly through the insurance provider.
19. Legal Proceedings...
Any delays in payment or other defaults will be acted on by the Agent in the first instance. Where the Agent has been initially unsuccessful, or there are significant rent arrears or breaches of the tenancy agreement, the Landlord will be advised accordingly. A solicitor would then be appointed and instructed by the Landlord (except where the Agent is unable to contact the Landlord, in which case the Agent is authorised to instruct a solicitor on the Landlord’s behalf). The Landlord is responsible for payment of all legal fees and any related costs.
20. Housing Benefit...
The Landlord undertakes to reimburse the Agent for any claims arising from overpayment which may be made by the local authority in respect of housing benefit, or other benefit schemes, paid to or on behalf of the tenant(s) as rent. This undertaking shall remain in force throughout the tenancy and for up to six years thereafter, whether or not the Agent continues to be engaged to let or manage the property under this agreement.
21. Services to Tenants...
The Agent may offer to arrange insurance, banking and other financial services, mortgages, estate agency and other related services for the prospective and current tenants and shall be entitled to receive a commission in respect of any such services arranged. The Landlord will not be entitled to any share of the commissions or any reduction in fees.
22. Key Holding...
Tenants working full time are not usually available to be at the property during the day to provide access to contractors when there is a problem.
The Agent will require a set of keys which will be securely held by the Agent and made available to carefully vetted contractors when required. This will also facilitate property inspections and allow the Agent to gain access to the Property if there is an emergency and the tenant is not available.
23. Clients Money...
All monies are held in Sensis Property Management Ltd. designated client bank accounts, on which no interest will be paid.
24. Data Protection...
All information concerning Landlords or Tenants details are confidential, and the information will be held by the Agent in strict accordance with the provisions of the Data Protection Act and any amendments thereto.
The agent may alter or amend these Terms and Conditions at any time by way of one month’s written notice. They will be binding on all Clients at the time of notification, except for properties that are fully managed, where the alterations will be binding at the end of the current tenancy.
26. Selective Licensing...
The Landlord agrees to fully indemnify the Agent against all expenses and/or penalties that may be suffered, or imposed on the Agent, as a result of non-compliance, in part, or full, in respect of any regulations, or obligations set out within the Rotherham Metropolitan Borough Council Selective Licensing Scheme...
The Agent will charge the Landlord commission for providing and carrying out services, as outlined in the above agreement, in the following ways...
Tenant finder’s fee –
This is charged by the Agent, to the Landlord, as an upfront, non-refundable fee. It is charged when a Landlord instructs the Agent to procure a tenant on their behalf, once found, the Landlord will manage the property, not the Agent.
It is also charged by the Agent to the Landlord, should the Landlord at any time decide that the management of the property in question be moved away from the Agent.
The tenant finder’s fee will be charged by the Agent, to the Landlord at a minimum rate of one month’s gross rental income.
Monthly Commission –
This is charged by the Agent to the Landlord at a flat rate of 10% of the gross rent received per calendar month and will usually be deducted from the received rent at the source, prior to paying the Landlord. The Agent would not usually charge the Landlord commission during void periods.
By signing this agreement, I/we agree to be bound by all twenty-seven of the terms and conditions contained therein.
Signed –(Landlord Name) Print – (Landlord Name)
(For and on the behalf of Sensis Property Management Ltd)
Signed –(Agent name here) Print – (Agent name here)
Dated Date Signed