Property Licence Agreement
Property Security DepositLicence Agreement for a Self-Contained Unit
THIS AGREEMENT is made this the-insert day- day of -insert month and year-
BETWEEN
(1)-insert company name- – Registered Office at -insert company registered office address-,hereinafter called the ‘Property Manager’
(2)-insert occupant name- of -insert occupant address-, hereinafter called the ‘Licensee’
NOW IT IS AGREED as follows: -
1.Definitions and Interpretation
For all purposes in this Agreement the terms defined in this clause shall have the meanings specified.
1.1‘The Furniture and Furnishings’
‘The Furniture and Furnishings’ means the Property Manager’s furniture and furnishings used by the Licensee from time to time in The Room.
1.2‘The House’
‘The House’ means the property known as:
-insert full property address-
1.3‘The Licence’
‘The Licence’ means the licence to occupy conferred by this Agreement.
1.4‘The Room’
‘The Room’ means the room in The House that is allotted to the Licensee for their exclusive use by the Property Manager.
2.Nature of this Agreement
2.1This Agreement is not intended to confer exclusive possession on the Licensee nor to create the relationship of Property Manager and tenant between the parties. The Licensee shall not be entitled to a tenancy, or to an assured shorthold or assured tenancy, or to any statutory protection under the Housing Act 1988 or to any other statutory security of tenure now or upon the determination of the Licence.
2.2This licence is not assignable and will terminate automatically without notice if any payment is not made within 10 (ten) days of it becoming due.
3.Licence to Occupy
The Property Managerpermits the Licensee to occupy the Room personally and to use The Furniture and Furnishings, commencing on -insert day- of -insert month and year-.
4.Consideration
The Licensee shall pay to the Property Manager:-
4.1A Licence Fee of -insert fee amount- per calendar month in advance in respect of the occupation of The Room; -
4.1.1The first month’s Licence Fee will cover the period from -insert day- of -insert month- to -insert day- of -insert month-being-insert length-and a pro rata fee of -insert amount- being -insert formula-.
4.1.2The last month’s Licence Fee will cover the period of the final calendar month of the occupation and is -insert amount-.
4.2The first month’s licence fee and the last month’s licence feeis paid before taking occupation,no deposit is taken and any damages or losses occurring during the term of The Licence or through breach of this Agreement are in addition and payable as well as the Licence Fee.
4.2.1In the interim period whilst the Licensee awaits the vacancy of the room, the Licensee will provide a security deposit of -insert amount- in cash which will be held by the Property Manager until the room is available to be occupied and the advanced first and last month’s Licence Fee paid before taking occupation has cleared, at which time the -insert amount- in cash will be returned to the Licensee within 48 hours in the form of cash.
4.3The first payment and the last month’s payment is made at the time of occupation, the first subsequent payment being made on-insert day, month and year- and the remainder on the lastday of each calendar month to cover the subsequent months.
4.4The payment will be made by Bank Transfer to the Bank Account of -insert company name-. The details are: Sort Code: -insert number-, Account Number: -insert number-, Bank Name: -insert bank-, Account Name: -insert account name-.
4.5The Licence Fee is subject to an additional amount to compensate the Property Manager for any damages or losses occurring through breach of this Agreement and any arrears of the Licence Fee. If the Licence Fee paid in advance does not cover any damages and notice, then the amount due will be payable to the Property Manager by the Licensee in addition to any Licence Fee.
4.6Any licence fee not paid on the due date will accrue daily interest at -insert interest rate-of the monthly amount due until and including the day it is paid.
5.Keys
5.1The Property Manager will issue to the Licensee one set of keys only for The Room and The House.
5.2If the Licensee loses a key, the Property Manager will replace it upon the Licensee paying the cost of having a replacement cut.
5.3The Property Manager shall retain his own set of keys and he and any persons authorised by him may exercise the right to use these keys and obtain free entry to The Room at any time, including the viewing of The Room by others, but only with the consent of the Licensee if they are present.
6.Access and Use of Facilities
The licensee shall have the right to use the front door, entrance hall, staircase and landings of The House and to use the communal kitchen, if provided, for cooking, eating and the storage of food and to use the communal lavatory and bathroom, if provided, and to use the garden, if provided, in common with the Property Manager and the other Licensees of the House. Where provided, unless otherwise agreed in writing, there is no right to use the shed, garage or driveway.
7.Council Tax
The Property Manager will pay the council tax.
8.Amicable Sharing
The licensee must use his best endeavours to share the House amicably and peaceably with other Licensees as the Property Manager from time to time permits to use The House and must not interfere with or otherwise obstruct such shared occupation in any way whatsoever, including being untidy or not washing up and wiping up and sweeping floors in the kitchen or not complying with house rules associated to this agreement.
9.Keeping The Room Clean
The Licensee must keep the interior of The Room and all other shared parts of The House used by the Licensee including the kitchen, the lavatory and bathroom in good and clean condition and shall make good any damage caused there. Rubbish must not be left in the communal areas but put in the bins provided.
10.Furniture and Furnishings
10.1The Licensee must keep The Furniture and Furnishings in good order and condition and must not remove any of them from The Rooms. The Licensee must make good any damage to The Furniture and Furnishings caused by him and replace with articles of a similar kind and value any items broken or damaged by him, as reasonably requested by the Property Manager.
10.2The Property Manager confirms that The Furniture and Furnishings comply with The Furniture and Furnishings (Fire Safety) Regulations 1988 as amended.
10.3The Property Manager confirms that the electrical appliances and equipment provided by the Property Manager are safe and will not cause danger and that all electrical and equipment manufactured after 19 January 1997 are marked with the appropriate CE symbol.
11.Rubbish
The Licensee must ensure that The Room is cleaned daily and that all his rubbish is disposed of daily and placed in the rubbish bin and/or wheeliebin provided.The Licensee must also participate in the rota with other Licensees for ensuring the wheelie bins and recyclables are placed at the allocated area at the grounds of The House for collection and replaced in their location within the grounds of The House after emptying by the municipality.
12.Services
12.1The Property Manager confirms that he has complied with the Gas Safety (Installation and Use) Regulations 1998 and the Safety Certificate is available for inspection by the Licensee.
13.Termination
The License may be terminated: -
13.1by the Property Manager giving to the Licensee not less than onemonth’s notice in writing served at any time;
13.2in respect of the occupation of any particular room in The House, by the Property Manager giving written notice directing the Licensee to use other room instead subject to the Licensee having 96 hours to remove his personal effects to the substituted room;
13.3by the Property Manager without notice if the Licensee is in breach of any condition of this Agreement including but not limited to late payment but without prejudice to any other remedies of the Property Manager in respect of the breach;
13.4by the Licensee giving the Property Manager not less than one month’s notice in writing with a definite leaving date.If the Licensee wishes to terminate within the initial minimum -insert minimum length written (number)- months agreement period, then a £250.00 administration fee is charged and added to the last month’s licence fee.
14.Vacation of the Rooms
14.1Upon termination of The Licence, the Licensee shall immediately cease to be entitled to use The Room and The House and must vacate The Room leaving it clean and tidy and return the keys to the Property Manager forthwith and vacate the property.
14.2Where the Licence to Occupy has been ended by the Property Manager with or without notice, the Licensee may not return to the premises.
15.Housing Benefit
Where The Licence Fee is being paid partly or fully by Housing Benefit then it must be paid by the Housing Benefit Agency direct to a bank account nominated by the Property Manager. The Property Manager is not obliged to accept payment by Housing Benefit and if he does he will still require one month’s advance payment before occupation is allowed.
16.Default
16.1In the event of failure to pay The Licence Fee or other charges on the due date including any Court Judgement debt brought under this Agreement, the Licensee shall pay to the Property Manager; -
16.1.1an administration charge of £50.00;
16.1.2interest at the rate of -insert interest rate-for each day the rent is lateor part thereof, compounded monthly;
16.1.3a charge of £50.00 for each cheque tendered by the Licensee which is dishonoured;
16.1.4any and all costs made by any company or Solicitors employed by the Property Manager to collect the debt such charge to be added directly to the Licence Fee arrears and collected as part of The Licence Fee arrears.
16.2The Licensee agrees to pay to the Property Manager all costs and expenses (including VAT) incurred by the Property Manager (including, but not limited to, the costs and fees of the Property Manager’s and other professional advisers) in respect of; -
16.2.1the enforcement of any of the provisions of this Agreement; and
16.2.2the service of any notice relating to the breach by the Licensee of any of the Licensee’s obligations under this Agreement.
16.3Any proceedings arising from this Licence for recovery of sums of money due from the Licensee or otherwise will be conducted either in -insert first county court- or -insert second county court-and the Licensee agrees that he will not make application to transfer any such proceedings to any other County Court.
16.4Any Summons served in proceedings pursuant to this Licence or otherwise is deemed served if sent to the Licensee’s address on this document.
16.5If the Licensee is absent from The Room without notification for more than two weeks and is in arrears with payments or Housing Benefit, the Property Manager will be entitled to deem that the Licensee has vacated The Room and terminated this Licence without notice.
16.6Any possessions of the Licensee remaining in The Room or otherwise on the Property Manager’s property after termination of this Licence are deemed to have been left by the Licensee and the Property Manager may dispose of them after four weeks, without notice and defray any proceeds against outstanding arrears and/or costs of disposal.
16.7The Licensee agrees that should they default on this Agreement their default be registered with a credit reference agency.
17.Equipment
The provision of any electrical equipment (including but not limited to washing machine, fridge, freezer, shower and tumble dryer) does not imply that the equipment is in good working order. No liability is accepted for loss or damage to property caused by the operation or non-operation of such equipment. The Licensee is advised to arrange for their own insurance to cover any loss or damage caused by such equipment. The Licensee is not liable for the repair of such equipment which is proven to the Property Manager’s satisfaction to be due to electrical or mechanical breakdown and not misuse. Misuse or interference with the fire/security alarm or fire protection equipment is a criminal offence and will result in eviction without notice.
18.Insurance
18.1The Licensee acknowledges that Insurance of the Licensee’s own property is and remains the responsibility of the Licensee. The Licensee is liable for any damage or loss to the Property Manager’s property howsoever caused. Any such damage so caused is to be paid for at the time the damage happens. Alternatively, with the Property Manager’s consent, the Licensee may arrange the repair or reinstatement at the Licensee’s own expense. The Licensee is recommended to take out relevant insurance to cover such loss or damage to the Property Manager’s property, furnishings and appliances.
18.2 When leaving The Room or The House, it is imperative that you secure all windows and doors and they close and lock properly as any insurance policy is likely to be invalid if they are not secured properly. Please lock them at any time you leave, even if there are others inside. The doors have suitable locks that even a locked door can be opened by occupants from the inside. In the event any insurance claim is not validated due to security negligence you will be responsible for any claims arising from this negligence.
19.Inventory
Any bed linen, cooking utensils, crockery, furniture or appliances provided are only as a convenience and Licensees are free to bring their own in should they find them unsatisfactory. The Property Manager will carry out a photographic inventory of the fixtures, fittings, furniture and effects and this will be the inventory. The Licensee may have a copy of the photographs provided they are requested at the time of entering into this Agreement and a fee of £25.00 is paid.
20.Alterations
No alterations or redecoration may be made to the premises; or fixtures, fittings, furniture or equipment may be removed from The Room without the Property Manager’s written permission. This includes changing or adding new locks. If, at the Licensee’s request and agreement by the Property Manager, alterations are made to the property, additional furniture provided, any such alternation will normally incur an administration charge and if appropriate labour/material change, the minimum being £25.00. Should the Licensee make any alterations to The House, which must be with the Property Manager’s permission, e.g. redecoration, fitting of new curtains/curtain rails, etc., then they become the property of the Property Manager and must not be removed when the Licensee vacates the premises with the exception of curtain/rails where the Licensee refits the original curtains/rails.
21.Week
A week is noon on a specific day of the week to noon on the same specific day of the week seven calendar days later. The House must be vacated before 12.00 noon on the final day of occupation. Occupancy beyond that time will be charged pro rata.
22.Repairs
Request for repairs and notification of damage to the Property Manager’s property must, as soon as is practicable, be notified to the Property Manager, initially verbally and followed up in writing to the address of the Property Manager above. The Property Manager will either carry out the repair or give the Licensee permission to deal with the repair. Licensees must on no account organise repairs without first obtaining an estimate of the cost and obtaining the Property Manager’s consent. The Property Manager or his agent may be contacted by telephone in an emergency.
23General
23.1The Licence Fee is subject to review every -insert minimum length written (number)- months. Where an increase is made the Licensee will be given 30-day’s notice in writing of the proposed increase.
23.2The Licensee fully understands that by taking accommodation they agree to pay for this accommodation for the duration of their Licence, irrespective of whether they actually stay at the premises, or whatever other reason.
24.Acknowledgments
24.1This Agreement along with the House Rules (attached) embodies the entire understanding of the parties relating to The Room and The House and to all the matters dealt with by any of the provisions of this Agreement.
24.2In particular and without prejudice to the generality of the foregoing the Licensee acknowledges that he has received a copy of this Agreement before signing it and has had the opportunity of taking legal advice on it and has read and understood it, and acknowledges that The Room and all parts of The House will be shared with the Property Manager and other persons to whom the Property Manager grants a Licence and that he will not have exclusive possession of The Room or any part of The House under any circumstances.