Dear
Re:(the property)
I am writing to set out the terms on which this firm would be willing to act as your agent for letting and managing the property. They are:-
1.We are appointed as the sole Letting and Managing Agent.
2.Our duties will be as follows;-
(a)To use reasonable endeavours to find tenant(s) for the property, including marketing the property.
(b)To vet prospective tenant(s) and to take up references where appropriate.
(c)To negotiate the terms of the tenancy agreement with the tenant(s) and complete the tenancy agreement on your behalf as your agent.
(d)To collect rent/deposits and all other monies due to you and account monthly with statements to you.
(e)To administer the Deposit (unless otherwise agreed)
(f)To inspect the property but only as often as is in our view necessary.
3(a)In addition we will arrange for the repairs to the property as your agent and at your expense so far as is appropriate and we will pay the accounts for such repairs (subject to availability of funds in our hands). So far as is possible we will consult with you before giving instructions to be carried out in any case where the cost is likely to exceed £200.00 (inclusive of VAT). It may not be possible to consult with you even though this figure is exceeded in cases of emergency , to prevent further damage or to comply with legal obligations. We
do not guarantee the standard of any workmanship and are not liable for any defects.
(b)You will be responsible for paying the cost of all repairs, works and decorations to the property.
(c)It is your responsibility to arrange for the gas appliances to be checked for safety at least annually. There must be a current gas safety certificate in force at the time the property is let. If you fail to produce one we can arrange for this to be done and for any work required to be carried out at your expense.
(d)You will respond promptly to any request from us for instructions or if rquested confirm instructions in writing
(e)Where the property is a house in multiple occupation (“HMO”) it is your responsibility to comply with the HMO Management Regulations and in particular to obtain any electrical report required for the property. You are responsible for obtaining an HMO licence if required and for complying with the terms (unless otherwise agreed with us in writing). When required you must carry out any risk assessment required by the Fire Safety Order and implement its findings.
(f)You are responsible for the state and condition of the property and for complying with all legislation affecting the property. You must tell us of any repairs or maintenance issues or issues affecting the condition of the property of which you are aware.
4.You will approve and ratify all acts done by us on your behalf and indemnify us from all actions, cost, claims and demands whatsoever arising out of or connected with our letting or management of the property.
5.Whilst this appointment is in force you will not employ or retain any other person in respect of the letting or management of the property.
6.If so required by us you will pay to us in advance any amounts payable in respect of significant repair works or decorations to the property or legal or other professional fees or costs.
7.You will inform us if your usual place of abode is outside the U.K. for income tax purposes or if you cease to be resident in the UK.
8.You will supply us with details of all insurance policies relating to the property if required.
9.The following shall be your responsibility:-
(1)All court fees, professional fees disbursements and other costs in connection with the recovery of possession, arrears of rent or other monies or the enforcement of any breaches of any tenancy agreement relating to the property.
(2)The arrangement of insurance covers relating to the property and its contents and payment of all premiums for such insurance.
(3)The payment of all mortgage repayments relating to the property.
(4)The payment of all outgoings in relation to the property (including any Council Tax).
10.It is your responsibility to obtain the consent of any mortgagee or lender before letting the property.
11.Whilst we will take reasonable care in preparing an inventory ( where one is required) we are unable to guarantee that we will be able to observe every item of damage or disrepair. The inventory will only describe by a general description.
12.If any statutory notice is served in relation to the property we will deal with this as we consider appropriate but at your expense. Where possible we will consult with you.
13.We shall have the following rights:-
(1)As required by law if we have reason to believe that your usual place of abode is outside the United Kingdom for tax purposes we shall have the right to retain and pay to the Inland Revenue an amount equivalent to the basic rate of Income Tax from time to time in force by deduction from rental payments received according to Inland Revenue Regulations. This will not apply if you obtain authority for gross payments from the Inland Revenue.
(2)The right to keep interest on monies held in our client account or on deposits and any insurance commissions.
(3)The right to keep monies to meet any obligation or potential obligation to pay any money to any other person.
(4) The right to deduct our commission or charges from any money received.
(5)If considered appropriate to instruct the Solicitors on your behalf to take/defend legal proceedings relating to the property or any tenant.
14(a).Any bonds or deposits received by us from any tenant are to be held by us as
Stakeholders unless it is agreed that the Landlord. We will retain any such bond or deposit which we hold subject to the terms of the tenancy agreement unless otherwise agreed. Where the Agent holds the deposit it will be held under the Tenancy Deposit Scheme (the Dispute Service)
(b)Any interest on the deposit held by the Agent shall belong to the Agent.
(c)Where the Agent holds the deposit the deposit is held by the Agent as Stakeholder. This means that the Agent cannot part with the Deposit except as agreed between the Landlord and the Tenant or as ordered by the Court
(d)The Agent is a member of the Tenancy Deposit Scheme, which is administered by:
The Dispute Service Ltd
PO Box 541
Amersham
Bucks
HP6 6ZR
phone0845 226 7837
web
fax01494 431 123
(e)If the Property is sold or where the Agent manages the Property if he ceases to manage it the Agent may pay the Deposit to a person who is a member of the Tenancy Deposit Scheme (operated by the Dispute Service) or arrange to protect it under one of the other authorised tenancy deposit protection schemes even though the Agent holds the Deposit as stakeholder.
(f)At the end of the tenancy covered by the tenancy Deposit Scheme the following provisions shall apply:
(1)If there is no dispute the Agent will keep any amounts agreed as deductions where expenditure has been incurred on behalf of the Landlord, or repay the whole or the balance of the Deposit according to the conditions of the Tenancy Agreement with the Landlord and the Tenant. Payment of the Deposit will be made within 10 working days of written consent from both parties.
(2)If, after 10 working days[*] following notification of a dispute to the Agent and reasonable attempts have been made in that time to resolve any differences of opinion, there remains an unresolved dispute between the Landlord and the Tenant over the allocation of the Deposit it will be submitted to the Scheme’s Independent Examiner (ICE) for adjudication. All parties agree to co-operate with any adjudication.
(3)The statutory rights of either the Landlord or the Tenant(s) to take legal action against the other party remain unaffected.
(4)It is not compulsory for the parties to refer the dispute to the ICE for adjudication. The parties may, if either party chooses to do so seek the decision of the Court. However, this process may take longer and may incur further costs. Judges may, because it is a condition of the Tenancy Agreement signed by both parties, refer the dispute back to the ICE for adjudication. If the parties do agree that the dispute should be resolved by the ICE, they must accept the decision of the ICE as final and binding.
(5)If there is a dispute the Agent must remit to The Dispute Service Ltd the full deposit, less any amounts already agreed by the parties and paid over to them. This must be done within 10 working days of being told that a dispute has been registered whether or not the Landlord or the Agent want to contest it. Failure to do so will not delay the adjudication but The Dispute Service Ltd will take appropriate action to recover the deposit and discipline the Agent
(6)The Agent must co-operate with the ICE in the adjudication of the dispute and follow any recommendations concerning the method of the resolution of the dispute
(g)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.
(h)If the Landlord holds the Deposit himself the Agent will transfer it to the Landlord within 5 days of receiving it. The Landlord must then register it with another Tenancy Deposit Protection Scheme within a further 9 days if the Tenancy is an Assured Shorthold Tenancy. If the Landlord fails to do so the Tenant can take legal action against the Landlord in the County Court. The Court will make an order stating that the Landlord must pay the Deposit back to the Tenant or lodge it with the custodial scheme which is known as the Deposit Protection Scheme. In addition a further order will be made requiring the Landlord to pay compensation to the Tenant of an amount equal to three times the Deposit. The Landlord will be unable to serve a Section 21 Notice on the Tenant until compliance with the above conditions and the Court will not grant the Landlord a possession order. The Agent has no liability for any loss suffered if the Landlord fail to comply.
(i)Where the Landlord holds the Deposit the Landlord shall indemnify the Agent against all claims demands and penalties if the Landlord fails to comply with the Landlord’s obligations under the Housing Act 2004 relating to the Deposit
15.Our commission will be% of the rent received during the term of the tenancy as originally agreed with the Tenant (this will be for a minimum of six months). No refund will be allowed if the tenancy ends early for whatever reason. A full commission is due in the case of any re-letting negotiated by us (even to the same tenant).
16.The amount of our commission will be deducted from each rent payment.
17.We will be entitled to the following additional payments:-
(1)All advertising costs in connection with the letting of the property but the advertising required will firstly be approved by you. This will be deducted from the first rent payment along with our commission.
(2)A reasonable fee for any court attendance, attendance at any Inquiry, Committee, Tribunal or Rent Officer or attendance upon Officers of the Local Authority or any public body or utility, solicitors, accountants or other professional advisors relating to the property, including waiting time or for providing any other service not referred to in paragraph 2 above.
18.All commission payments and charges are exclusive of VAT at the prevailing rate which will be payable in addition if we are registered for VAT.
19.Once the property has been let this agreement may not be terminated by you during the first six months of the tenancy. If you appoint another agent in breach of this provision or if you otherwise end this Agreement or if it is terminated by you before the end of the first six months, you will pay to us as liquidated damages an amount equivalent to our commission for the first six months of the tenancy(less any commission actually received by us down to the determination of this Agreement). Thereafter you must give three months notice of termination
19aIn the event of the property being let by party other than ourselves a charge of £250 will be as liquidated damages.
20.Our appointment period may be terminated at any time by us by 28 days notice in writing to you.
21.If any person introduced by us to you as a tenant to purchase the Property (whether alone or jointly with any other person) you will pay to us as a commission of 1.5% of the sale price, such commission to be paid on completion of the sale.
22.By signing the acceptance of these terms you warrant to us that you alone are the Owner(s) of the Property and if the Property is also owned by the anyone else jointly with you then you have full authority from such other person(s) to enter this Agreement on their behalf.
23.This Agreement shall also apply to any other Property which we are instructed to let and manage by you in the absence of an agent being signed for such other Property.
24.We do not take any responsibility for when the property is empty.
We shall not be under any liability if any tenant fails to pay the rent, damages the Property or otherwise breaks the terms of the tenancy agreement. The risk of non-payment or other liability is yours.
Please would you confirm your acceptance of these terms signing and returning the attached copy of this letter.
Yours sincerely,
James/ Danny Rosenberg
Please sign to agree that you accept the terms set out above here:-
I/We agree to be bound by and observe the terms of this letter.
i/We agree that you will hold/not hold * the Deposit
Dated
------
------
* Delete as appropriate
[*]