A. Tenancy Agreement Fee FREE Savings of £330 plus Vat (£396 inclusive of Vat)
Please note, a Tenancy Agreement is a formal agreement between the Landlord(s) & Tenant(s) to make the rental of the property by the Landlord to the Tenant express. The Agreement provides both parties with clarity regarding their responsibilities formally.
B. Tenancy Deposit Service Fee FREE Savings of £330 plus Vat (£396 inclusive of Vat)
C. Tenancy Renewal Fee FREE "NO ANNUAL RENEWAL FEES!" Savings of £550 plus Vat Per Year (£660 inclusive of Vat), as normally this is an Annual Fee charged from the 2nd year onward if the same Tenants are in situ for Let & Managed Properties.
Prior to Tenancy & if Required During Tenancy
D. Tenancy Agreement Fee £330 plus Vat (£396 inclusive of Vat) or Included in Premium Lettings Package
E. Tenancy Deposit Service Fee £330 plus Vat (£396 inclusive of Vat) or Included in Premium Lettings Package
F. Annual Tenancy Renewal Fee FREE "NO ANNUAL RENEWAL FEES!" Savings of £550 plus Vat Per Year (£660 inclusive of Vat per year)
G. Boiler service or £130.00 plus Vat (£156.00 inclusive of Vat) or Included in Gold Management and Platinum Complete Management Packages
H. Gas safety check £130.00 plus Vat (£156.00 inclusive of Vat) or Included in Gold Management and Platinum Complete Management Packages.
Fee for replacing a Co2 Detector, Heat Detector, or Smoke alarm is £40 plus Vat each (£48 inclusive of Vat each) if applicable, such as essential installation or renewal.
I. Energy Performance Certificate (EPC) £120 plus Vat (£144 inclusive of Vat) or Included in Gold Management and Platinum Complete Management Packages.
J. Electrical Installation Condition Report (EICR) Starting at £240 plus Vat (£288 incl of Vat) or Included in Gold Management and Platinum Complete Management Packages.
K. Portable Appliance Test £73 plus Vat which includes 10 tests (£87.60 inclusive of Vat and 10 tests)
L. Preparing Inventory/Schedule of Condition Cost varies depending upon Property size £240 to £300 plus Vat (£288 to £360 inclusive of Vat)
M. Rent Protection/Legal Expenses Policy £293.32 excl Vat (351.98 incl Vat) or Included in Gold Management and Platinum Complete Management Packages.
N. Referencing Fee is £50 plus Vat per Adult (£60 inclusive of Vat per Adult) or Included in Premium Lettings Package
O. Maintenance Repair Landlords (see clause 4.1 of Agency Agreement/Terms &Conditions
Obtaining estimates and supervision of major works: 10% plus Vat of cost of Fee (12% including Vat of cost of Fee) Subject to a Minimum Fee of £90 plus Vat (£108 including Vat). Amount To Be Agreed or Landlord to agree Remedial Work Quotation prior to work being carried out with the exception of Emergency Works as and when required.
P. Issuing Rent Increase Notice £50 plus Vat (£60 inclusive of Vat)
Q. Duplication and testing of extra keys £50 plus Vat plus costs (£60 inclusive of Vat plus costs)
R. Administration Hourly rate for other work requested. £40 plus Vat per hour (£48 inclusive of Vat per hour)
S. Redirection of mail overseas Cost of postage (no mark up)
T. Income & Expenditure reports and statements £50 plus Vat (£60 inclusive of Vat)
or Monthly Statements Included in all Management Packages
U. Issuing Notice of Seeking Possession £330 plus Vat (£396 inclusive of Vat)
V. Check-out report £240 Plus Vat (£288 inclusive of Vat)
W. Management Viewing Fee £80 Plus Vat (£96 inclusive of Vat)
or Included in Platinum Complete Management Package.
X. Floor Plans £120 Plus Vat (£144 inclusive of Vat)
Z. Selective Licensing
In various Boroughs, a Selective License is required on Privately Rented Properties. For instance, in the London Borough of Ealing, since 3rd January 2023, most Ealing Wards require that every Privately Let Property must have a Selective Licensing (Designation 2) in place (Acton Central, Dormers Wells, Greenford Broadway, North Greenford, Greenford Green, Hanger Hill, Hobbayne, Lady Margaret, Northolt Mandeville, Northolt West End, Perivale and South Acton (pre-May 2022 ward boundaries), added to the previous wards of East Acton, Southall Broadway and Southall Green.
The Selective Licensing (Designation 2) in this instance applies to any Property where the whole of it is occupied under a single tenancy or license, or under two or more tenancies or licenses in respect of different dwellings contained in it, within the ward unless-
(a) the house is a House in Multiple Occupation (HMO) and is required to be licensed under Part 2 of the Housing Act 2004
(b) the tenancy or licence of the house has been granted by a non-profit registered provider of
social housing, a profit-making registered provider of social housing in respect of social housing
(within the meaning of Part 2 of the Housing and Regeneration Act 2008) or by a body which is
registered as a social landlord under Part 1 of the Housing Act 1996 (c. 52).
(c) the house is subject to an Interim or Final Management Order under Part 4 of the Act;
(d) the house is subject to a temporary exemption under section 86 of the Act; or
(e) the house is occupied under a tenancy or licence which is exempt under the Act or the
occupation is of a building or part of a building so exempt as defined in The Selective Licensing
of Houses (Specified Exemptions) (England) Order 2006.
The licensable property Representative must apply to the London Borough of Ealing for a licence. Failure to apply for a license is an offence under Section 95(1) of the Housing Act 2004, punishable on conviction by payment of an unlimited fine. As an alternative to commencing prosecution proceedings, the Council could also impose a financial penalty of up to £30,000.
In order for us to submit a Selective Licensing Application on your behalf, we do require confirmation of the following information:
Floor Plan of the property. We will obtain a Floor Plan on your behalf which will include room sizes (in square meters), location of bathrooms, toilets, kitchen facilities, position of Heat Detectors & Smoke Alarms and CO Detectors, emergency lighting and fire doors. Please note, there must be a Heat Detector in the Kitchen.
The Total cost of this process (of Ealing Wards) is detailed below
|Ealing Council Selective Licensing Fee||£750.00|
|20% Vat thereon||£120.00|
|20% Vat thereon||£24.00|
|Total Payable in Advance.||£1,614.00|
The Total cost of this process (Harrow - Wealdstone Ward, and Edgware Ward only) is detailed below
|Harrow Council Selective Licensing Fee||£610.00|
|20% Vat thereon||£120.00|
|20% Vat thereon||£24.00|
|Total Payable in Advance.||£1,474.00|
Room Rental for a Lodger or an HMO Property
Upon finding suitable Tenant(s), we would charge as our Fee a minimum of £500 plus Vat per Room (£600 inclusive of Vat per Room). From the 2nd year there will be an annual Renewal Fee of £350 plus Vat (£420 inclusive of Vat) and £150 plus Vat (£180 inclusive of Vat) for the preparation of a Tenancy Licence Agreement per Bedroom each, to be taken usually by way of a one-off deduction from the first rent received at the commencement of the Licence. This is on the basis that the original term will be for at least 6 months, as a minimum period.
If the Property is licenced as a HMO (House of Multiple Occupants) then a copy of the HMO Licence must be received by DM&Co. From the 2nd year there will be an annual Renewal Fee of £350 plus Vat (£420 inclusive of Vat)
The Agency Agreement is made between the Landlord of the Property (as named at the end of this Agreement) and DM&Co who agree to act as sole agent for the Landlord for letting and managing the Property and are herein after referred to as "the Agent". The purpose of this document is to set out clearly and concisely the extent of the letting and management service offered and the scale of fees charged.
The terms of the Agreement set out in this document will constitute a binding legal contract and by signing the Agreement you agree to comply with the terms and conditions below. If you are unsure of your obligations under this Agreement, then you are advised to take independent legal advice before signing. This Agreement is set out to comply with the requirements of the Provision of Services Regulations 2009 SI 2999.
STANDARD MANAGEMENT SERVICE DM&Co provides a property management service to owners wishing to let out their property. The standard fee for the management is taken as a percentage of the gross rents due for the period of the tenancy and a set-up fee will normally be levied at the outset for taking references and arranging the tenancy.
The Standard Management Service includes:
Additional items and other expenses will be charged according to the scale of fees defined below.
Terms of Business
1.1. GENERAL AUTHORITY:
The Landlord confirms that he/she is the sole or joint owner of the Property and has the right to rent out the Property under the terms of the mortgage or head lease. Where necessary, the Landlord confirms that permission to let has been granted by the mortgagee and the freeholder or head leaseholder, and that the Landlord agrees to comply with any mortgage or headlease conditions. Where the Property is subject to a mortgage or headlease, the Landlord shall supply the Agent with details of any headlease or mortgage conditions that may affect the letting of the Property.
The Landlord authorises the Agent to carry out the various usual duties of property management including those listed in the chosen Lettings / Management Packages detailed previously. The Landlord also agrees that the Agent may take and hold deposits and comply with the requirements of any tenancy deposit scheme that may apply to that deposit. It is declared that the Agent may earn and retain commissions on insurance policies issued. The Agent declares that fees may be charged to the Landlord for ancillary services and that such fees will include a profit element to cover the Agent’s administrative and business costs.
1.2. LETTING ONLY SERVICE:
Where the Landlord does not wish the Agent to undertake full management, the Agent can provide a Letting Only Service. For details of what the Letting Only Service includes, please see the ‘Basic Lettings Only’ or ‘Premium Lettings Only’ options detailed in the above Scale of Fees). The Landlord would remain responsible for all other aspects of the letting including the maintenance of the Property and any gas and electrical appliances. The Landlord would remain responsible for complying with the Deposit protection requirements of the Housing Act 2004 and must provide the Agent with written confirmation of this together with a receipt for the Deposit monies received by the Agent on his/her behalf. The Letting Only Service Fee is payable at the commencement of the tenancy and will be deducted from monies received by the Agent on the Landlord's behalf. If the Tenant leaves prior to the end of the term of the tenancy the Landlord shall not be entitled to reimbursement of any fees paid.
1.3. LETTING ONLY SERVICE PLUS DEPOSIT PROTECTION:*
Where the Landlord requires the Agent to deal with his/her legal responsibilities for the protection of tenancy deposits under the Housing Act then the Tenancy Deposit Service Fee will be charged in addition to the Letting Only Service Fee. The Landlord must indemnify the Agent for any losses suffered by the Agent as a result of the Landlord’s failure to comply with the Deposit protection requirements of the Housing Act 2004. 2004. *The Deposit Lodging is currently Free of Charge and is included within the ‘Basic Lettings Only’ or ‘Premium Lettings Only’ options detailed in the above Scale of Fees)
1.4. LETTING ONLY AND RENT COLLECTION SERVICE:
Where the Landlord requires the collection of rents and the deposit service in addition to the Basic Letting Only Service, then the Letting and Rent Collection Fee will be charged and will be deducted from rents collected.
1.5. RENEWALS FEES:*
Where, with the consent of the Landlord, the tenancy is renewed or extended to the same tenant (or any person associated with the Tenant) originally introduced by the Agent under the Standard Management Service, the Tenancy Renewal Fee shall be payable on the renewal date. The Agent shall prepare the tenancy agreement, if required, for the new or extended tenancy and the terms of this Agreement shall continue until the Tenant leaves, or this Agreement is terminated. * “No Annual Renewal Fees!”
The Agent will carry out referencing checks on any prospective tenant which would normally include a financial reference or credit check, and a character reference from a previous landlord or employer. This may be carried out by the Agent themselves or through a third party referencing supplier. The Agent will make reasonable endeavours to select good tenants with appropriate references who are capable of meeting the monthly rental payments. However, the Agent will not be responsible where fraudulent or incorrect information has been provided by applicants and the Agent had no reason to believe the information to be fraudulent or incorrect.
Where a third party referencing supplier report shows the applicants to be suitable tenants and the Agent has reviewed the report with the Landlord and has no reason to believe that the information is incorrect or has been fraudulently supplied the Agent will not be responsible for any default by the Tenant.
2.1 Although our aim is to take care in managing the Property, the Agent cannot accept responsibility for non-payment of rent, damage, or other default by tenants, or any associated legal costs incurred in their collection where the Agent has acted correctly in terms of this Agreement, or on the Landlord’s instructions. An insurance policy is recommended for this eventuality.
3.1 The Landlord agrees to pay the management or service fee at the applicable percentage above for the service level they have selected. This fee applies once a Tenant is introduced to the Property by the Agent and the Tenant enters into a Tenancy Agreement.
3.2 The Landlord agrees to repay the Agent for any 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 and within the scope of the authority given by this agency agreement. To assist the Agent in carrying out his/her duties effectively, the Landlord agrees to respond promptly with instructions where necessary to any correspondence or requests from the Agent.
3.3 Where this agreement is cancelled under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (or other consumer contract legislation) the Landlord agrees to repay any reasonable costs incurred by the Agent in carrying out his/her duties before the cancellation of the contract (see clause 15.6).
3.4 The Landlord agrees to indemnify the Agent for any loss, damage, penalty or fine (whether civil or criminal) or associated costs suffered as a result of the Agent providing services to the Landlord, except where this is attributable to the negligence of the Agent.
3.5 The Landlord agrees that any work carried out by the Agent for the Landlord beyond that set out in this Agreement, which is within the scope of the Agent’s general authority, will be charged at the hourly rate specified above.
4.1 The Landlord agrees to provide the Property in good and lettable condition and that 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. Subject to a retained maximum expenditure limit (Maintenance Repair Limit) on any single item or repair, and any other requirements or limits specified by the Landlord, the Agent will administer any miscellaneous maintenance work that needs to be carried out on the Property (although the administration of major works or refurbishment will incur an additional charge - see Scale of Fees above). ‘Retained maximum expenditure limit’ means that the Agent has authority to spend up to this amount (or other amount as individually agreed) on reasonable improvements or repairs in any single monthly accounting period without prior reference to the Landlord.
4.2 For expenditure in excess of the agreed expenditure limits, the Agent would normally request authorisation in advance, although it is agreed that in an emergency or for reasons of contractual or legal necessity where reasonable endeavours have been made to contact the Landlord, the Agent may reasonably exceed the limits specified. By law, it is necessary to carry out an annual gas safety check on any gas appliances and flues to ensure that all gas
appliances, flues and associated pipe work are maintained in a safe condition. The Agent will carry this out on the Landlord's behalf and expense and administer the necessary inspection and maintenance records. The reasonable costs involved will be debited to the Landlord’s account.
4.3 Where the Agent is required to co-ordinate repair and maintenance work on behalf of the Landlord, the Agent will not be responsible for any negligence, damage, or breach of contract by any contractor employed in this way unless this loss arises as a result of the Agent’s own negligence or breach of contract.
When letting property and collecting rents for non-UK resident landlords (NRL) i.e. landlords living overseas, the Agent is obliged by the Income Tax Act 2007 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 HM Revenue and Customs (HMRC) 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. A standard annual charge will be made for this work and the Agent may charge reasonable administration expenses for further work requested by the Landlord, the Landlord's accountant or the HMRC in connection with such tax liabilities. In many cases, a landlord's tax liability is minimal when all allowable costs are deducted.
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.
The Agent will use reasonable endeavours to take meter readings at each change of occupation in the Property and, where necessary, 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 always possible to rely on tenants to forward mail.
The deposit protection schemes established under the terms of the Housing Act 2004 require that all landlords need to be protected by good inventory and condition reports from the outset. The Agent will prepare an inventory for the Property and a charge will be made for this, the cost of which will depend on the size of the inventory and the Property. The standard inventory will include all removable items in the Property (except those of negligible value) plus carpets, paintwork, wall coverings, curtains, mirrors, sanitary ware and other articles that, in the opinion of the Agent, need regular checking. Landlords should not leave any removable articles of substantial value in the Property without prior arrangement with the Agent. The standard inventory service will include a full schedule of condition (condition, colour & decoration of ceilings, walls, doors & door fittings etc.). Evidence of condition or damage (i.e. photography) will be prepared as required, or at the Landlord's request, and will be charged accordingly.
The Standard Management Service includes the preparation of a tenancy agreement in the Agent's standard form(s) and provision of a copy of this agreement to a designated advisor or building society. Should the Landlord, advisors or mortgagees require amendment of the contract or require the Agent enter into further work or correspondence, a fee for this extra work may be requested (or you may have the tenancy agreement amended by your own adviser at your own expense). It is agreed that the Agent may sign the tenancy agreement(s) on behalf of the Landlord.
The Agent will, if instructed, serve the usual legal notices on the Tenant(s) in order to terminate the tenancy, increase the Rent, or for any other purpose that supports the good management of the Property,
or the timely return of the Deposit at the end of the tenancy. Fees will be charged for this service as set out above.
A holding deposit is generally taken from a tenant applying to rent a property. The purpose of the holding deposit is to reserve the property and to verify the Tenant's serious intent to proceed, and to protect the Agent against any administrative expenses (taking out bank references, conducting viewings,
re-advertising) that may be incurred should the Tenant decide to withdraw the application. The holding deposit 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 insurance to be undertaken to protect against loss of rents. This fee is not a tenancy deposit until it is transferred on the establishment of the tenancy.
12.1 Deposits. A tenancy deposit will be payable by the Tenant upon signing the tenancy agreement in addition to any rents due. The purpose of the tenancy deposit is to protect the Landlord against losses (including unpaid rent) or damage to the Property during the tenancy itself.
12.2 Statutory Tenancy Deposit Protection. Where the tenancy is an assured shorthold tenancy, the Landlord or Agent is legally required to ensure that any tenancy deposit taken under the tenancy is protected within one of three statutory tenancy deposit schemes within 30 days of receipt and comply with the rules of the scheme. The schemes are The Deposit Protection Service (DPS), My Deposits and Tenancy Deposit Scheme (TDS)
12.3 Tenancy Deposit Information. Where statutory deposit protection applies to a tenancy deposit, the Landlord or Agent is legally required to provide to the Tenant and any other Relevant Person, within 30 days of receipt of the deposit, the prescribed information required under the Housing Act 2004.
12.4 Agent Deposit Protection. Where a tenancy deposit has been received by the Agent and not passed to the Landlord, the deposit will be kept in a separate and secure client account ready for refunding (less any charges due) at the end of the tenancy, or forwarded to one of the Government-regulated deposit schemes listed above. The Agent will also provide the Tenant and any other Relevant Person with the prescribed information. The Landlord agrees that the Agent may use information given, including information about the Landlord, for the purposes of performing the Agent’s obligations to the Landlord and supply such information as is reasonably required to the scheme.
12.5 Landlord Deposit Protection. Where the Agent is providing a let only service without deposit protection it will be the Landlord’s responsibility to protect the Deposit, as required by law, and the Landlord agrees to provide evidence to the Agent that the Deposit has been protected and the correct information has been provided to the Tenant and any other Relevant Person. A valid notice seeking possession under s21 of the Housing Act 1988 cannot be served on a Tenant whose Deposit is not protected unless the Deposit has been returned to the Tenant or court proceedings relating to the return of the Deposit have been disposed of. A Tenant or any Relevant Person may apply through the courts for compensation of at least the amount of the Deposit, and up to three times the Deposit, where the Landlord (or someone acting on the Landlord’s behalf) has failed to protect the Deposit, failed to provide the Prescribed Information or failed to comply with the initial requirements of the authorised scheme.
12.6 End of Tenancy. Where the Agent has protected the Deposit on behalf of the Landlord the Agent will liaise with the Landlord at the end of the tenancy to ascertain what (if any) deductions will be made from the Deposit and liaise with the Tenant regarding any deductions. The Agent will assist in resolving any dispute between the Landlord and the Tenant and arrange for the return of the Deposit to the Tenant less any deductions agreed. Where the Deposit has been protected in one of the statutory tenancy deposit schemes and a dispute cannot be resolved the matter will be referred for adjudication under an Alternative Dispute Resolution (ADR) process within the scheme. The Landlord authorises the Agent to pay to the scheme as much of the Deposit as the scheme requires the Agent to send. The Agent will contact the
Landlord to keep him/her informed, but the Agent will not need to seek the Landlord’s further authority to send the money to the scheme.
More information on the requirements of the deposit protection schemes are available on the following web site and landlords are strongly urged to familiarize themselves with their legal responsibilities: https://www.gov.uk/tenancy-deposit-protection
13.1 When agreed with the Landlord, and not included in the Full Management Service, the Agent will make reasonable endeavours to carry out inspections quarterly starting after the first month. Such inspections do not constitute a formal survey of the Property, nor will the Agent check every item of the inventory at this stage. The inspection is concerned with verifying the good order of the tenancy (i.e. house 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 and gardens) to the extent that they are visible to the Agent without moving the Tenant’s possession.
13.2 Following the departure of tenants, a final inspection of the Property is carried out by the Agent. Testing of all the electrical appliances, heating system and plumbing is not feasible during this inspection; a qualified contractor should be appointed for this purpose should it be required by the Landlord. The Agent will endeavour to report any apparent deficiencies or dilapidations to the Landlord (and, if appropriate, to the relevant tenancy deposit scheme administrator) together with any recommended deductions or replacement values.
14.1 The Agent will attempt to resolve any deposit disputes between the Landlord and the Tenant by negotiating with the Tenant on behalf of the Landlord. Where the Deposit is subject to statutory tenancy deposit protection, and a dispute cannot be resolved between the parties, then it will be necessary to submit the claim to the tenancy deposit administrators for adjudication under an alternative dispute resolution (ADR) process or to take Small Claims action in the County Court. The Landlord may instruct the Agent to deal with the adjudication and the Agent will charge for the time incurred in doing so on an hourly basis at the rate specified above for ‘Hourly rate for other work.’
14.2 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.
15.1 Termination of Agency Agreement. This Agreement may be terminated by either party by way of two months' written notice.
15.2 Serious Breach of this Agreement. The Landlord or the Agent may terminate this Agreement on fourteen days’ notice if there is a fundamental breach of the agreement, and the other party does not remedy the fundamental breach within those fourteen days. Discrimination against any applicant, tenant or employee or sub-contractor of the Agent for gender, race, age, disability, religious belief or sexual orientation may constitute a fundamental breach.
15.3 Termination if the Agent has not secured a Tenant.If the Agent has not secured a tenant after six weeks of the appointment the Landlord may terminate this Agreement on one week’s notice.
15.4 Minimum Fee. The Minimum Fee applies if on termination the total fees due are less than the Minimum Fee. Where cancellation of this Agreement is unavoidable due to circumstances beyond the control of either party, the Minimum Fee will not apply and any pre-payments will be returned to the person entitled to them, less any expenses reasonably incurred to the date of cancellation.
The Minimum Fee will also apply and be payable if the Agent introduces a Tenant to the Property who finds the Property as a result of the Agent’s marketing efforts, or the Tenant is otherwise introduced to the Property during the Agent’s period of sole agency, and enters into a Tenancy Agreement or tenancy for the Property irrespective of whether or not the Tenancy is finalised by the Agent and whether or not the Agent is the effective cause of the introduction or Tenancy.
15.5 Tenancy Agreement. 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 to the Landlord as soon as possible. Landlords should be aware that the legal minimum notice period to tenants under assured tenancies is generally two months (should the contract allow for early termination) and this needs to be given even in the case of a fixed term tenancy which is due to expire.
15.6 Agreements signed away from the Agents office. Where the Landlord is a consumer (being an individual acting wholly or mainly outside of their own trade or business) and this Agency Agreement is signed:
The Landlord has a right to cancel under consumer protection legislation within 14 days (‘a cooling off period’) of the date of this Agreement. A cancellation notice is available at the end of this Agreement. Where the Landlord waives his/her right to cancellation (see clause 26 below) by agreeing to the Agent carrying out works immediately following the date of this Agreement he will be responsible for any reasonable costs incurred by the Agent in carrying out their duties if the Landlord cancels this contract during the ‘cooling off’ period.
The Landlord appoints the Agent as sole agent for the marketing, letting and/ or aspects of the management of the Property depending on which Service Level is agreed. If the Landlord lets the Property during the appointment of the Agent under this Agreement the Landlord might become liable to pay commission to both Agents. It is agreed that only the Agent may let the Property on behalf of the Landlord.
WARNING: You should read and understand these obligations before signing overleaf.
17.1 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 provided.
The following regulations (as amended) apply:
- There must be a Heat Detector in Kitchens. Smoke alarms are not suitable for kitchens.
17.2 The Landlord confirms that they are aware of these obligations and that the Agent has provided sufficient information 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 the above regulations. Under the Standard Management Service, the Agent shall ensure that all relevant equipment is checked at the beginning of the tenancy and maintained during the tenancy as required, and that appropriate records are kept. The Landlord agrees to repay the Agent’s costs incurred including any expenses or penalties (whether civil or criminal) that may be suffered as a result of non-compliance of the Property to fire and safety appliance standards.
17.3 Where the Landlord has duties in regard to the prevention of legionella and the inspection of domestic-type water systems, it is agreed that the Landlord shall be responsible for the maintenance of the water system and any associated safety checks under these duties. The Landlord confirms that they are aware of these duties and that the Agent has provided sufficient information to assist with compliance.
17.4 Landlords must ensure that a valid Energy Performance Certificate (EPC), where required, is made available free of charge to any prospective tenant at the earliest opportunity and in any event no later than which ever is the earlier of:
(i) the first time the landlord makes available to the prospective tenant any written information about the building; or
(ii) at the time which the prospective tenant views the building.
Where the Landlord does not have a valid EPC for the Property the Agent will arrange an EPC for the Property and the Energy Performance Certificate Admin Fee will be payable. If the Landlord already has a valid EPC for the Property then the Landlord must make this available to the Agent for any prospective tenants.
17.5 The Landlord must ensure that a Gas Safety Certificate, where required, is provided to the Tenant prior to their occupation of the Property. Where the Landlord does not have a valid Gas Safety Certificate for the Property the Agent will obtain this and the Landlord will reimburse the Agent for the full cost of arranging the gas safety check.
It is agreed that any instructions to the Agent from the Landlord regarding termination, proceedings, major repairs, payment, or other significant details regarding the letting be confirmed to the Agent in writing.
All fees stated are inclusive of VAT and will be deducted from the client’s account as they fall due. Management fees and similar services are based on a percentage of the actual rental fee. For example, a property rented at £1,000 per calendar month will incur a monthly management fee of £125 where the fee is 12.5%. Should the agreed rental be higher or lower, then the fee will be correspondingly higher or lower.
The Landlord shall be responsible for the Property being adequately insured and that the insurance policy covers the situation where the Property is let.
The Landlord undertakes to re-imburse the Agent for any claims arising from overpayment which may be made by the local authority in respect of housing benefit (or the Department of Work and Pensions with respect to Universal Credit), or other benefit scheme, paid to or on behalf of the Tenant(s) as rent. This undertaking shall remain in force during the currency of the tenancy and up to six years thereafter, whether or not the Agent continues to be engaged to let or manage the Property under this Agreement.
If the Agent is collecting rent from the Tenant and rent is outstanding for 7 days after it becomes due the Agent will notify the Landlord promptly and use its reasonable endeavours to obtain payment from the Tenant over the following 28 day period. At the expiry of that 28 day period the Agent will offer general advice on the next steps to be taken but cannot undertake legal proceedings on the Landlord’s behalf and cannot accept any liability for rent arrears or breaches of the Tenancy Agreement. If the Landlord wishes to appoint a solicitor he may do so at his/her sole cost. The Agent will charge a fee for attendance at Court and any protracted correspondence with solicitors at the hourly rate specified above.
It is agreed that the Agent will carry out any checks required under the Immigration Act on the proposed Tenants and any permitted occupiers at the start of or prior to the commencement of the Tenancy and any follow up checks where the Tenant has a limited right to rent. The Agent’s responsibilities for such checks will only extend to the duration of this Agreement and at the termination of this Agreement the Agent will transfer the status evidence to the Landlord and the responsibility for maintaining immigration status checks will return to the Landlord.
Where the Landlord is unsatisfied with any service provided by the Agent he should contact the Agent in the first instance to try to resolve matters. The Agent has an in-house complaints policy which must be followed, a copy of which has been provided with or prior to entering into this Agreement. The Agent is a member of the Property Redress Scheme and where the Landlord is unsatisfied with the way the complaint has been handled he may refer the matter to the scheme for a further decision, details of which are available upon request from the Agent.
The Agent undertakes to comply with data protection regulations and not to divulge any personal details of the Landlord or Tenant to any other third party or organisation without prior approval unless this is necessary to comply with a statutory obligation. The Agent will make every effort to keep such information safe and secure and will keep copies of agreements and other documents in relation to the tenancy for the period of the tenancy and for a reasonable period from the date of expiry of the tenancy. The Agent will keep copies of all financial information for seven years.
The Landlord undertakes to comply with data protection regulations and not to divulge any personal details of the Tenant to any other third party or organisation without prior approval unless this is necessary to comply with a statutory obligation. Where the Landlord processes and stores any personal details of the Tenant (for example,
where the agent is instructed on a let only basis and the landlord is managing the Property) the Landlord is required to provide the Tenant with a privacy notice of how their data will be processed or used by the Landlord. The Landlord is also required to ensure that any data held is adequate, relevant and not excessive for the purposes for which it is processed and is accurate and kept up to date. Data should not be kept for longer than necessary and should be deleted or shredded appropriately when no longer required.
No amendments or variation to this Agency Agreement will have any contractual effect unless agreed by the parties in writing. This Agreement shall be governed by and construed in accordance with the laws of
England and Wales, and each of the parties submits to the exclusive jurisdiction of the courts in England and Wales.
This Agency Agreement constitutes the entire written agreement between the parties and supersedes any previous agreement, discussion, correspondence or understanding between the parties but this will not affect any obligations in any such prior agreement which are expressed to continue after termination. In the event that any part of this Agreement is held to be void or unenforceable it will be severed from the Agreement and the remainder of the Agreement will continue in force to the fullest extent possible.
The terms and conditions of this Agreement may be varied by the Agent, but only with two months’ prior written notice.
[ ] I consent to the Agent carrying out marketing work immediately (prior to any right of cancellation period).
See clause 15.6 above. Tick box if this applies.
I wish the Agent to undertake the following service:
[ ] Basic Lettings Package
[ ] Premium Lettings Package
[ ] Silver Management Package
[ ] Gold Management Package
[ ] Platinum Management Package
[ ] Selective Licensing (Ealing)
[ ] Selective Licensing (Harrow)
[ ] I agree that my personal contact details and relevant information may be shared with trusted third parties as necessary (the Agent will not share any personal information with third party organisations for marketing purposes).
[ ] I/we confirm that we are the sole/joint owners of the Property.
In this Agreement any reference to the Property includes all properties listed in the First Schedule attached hereto.
THE FIRST SCHEDULE
Address of Property to be let is _______________________
Notice of the Right to Cancel
The Consumer Contracts (Information, Cancellation and Additional Charges) Regs 2013
Notice of the Right to Cancel
The Consumer Contracts (Information, Cancellation and Additional Charges) Regs 2013
The right to cancel only applies if the Landlord enters into an agreement with the Agent where the Landlord is a consumer (being an individual acting wholly or mainly outside of their own trade or business) and this Agency Agreement is signed:
Information for Landlords:
You have the right to cancel this contract within 14 days without giving any reason. The cancellation period will expire after 14 days after the day on which this contract was entered into.
To exercise the right to cancel, you must inform the Agent at [Insert address, tel, fax and email] of your decision to cancel this contract by a clear statement (eg a letter sent by post, fax or email). You may use the model cancellation form below, but it is not obligatory.
To meet the cancellation deadline, it is sufficient for you to send your communication concerning your exercise of the right to cancel before the cancellation period has expired.
Effects of cancellation
If you cancel this contract, the Agent will reimburse to you any payments received from you without undue delay, and not later than 14 days after the day on which the Agent was informed about your decision to cancel this contract. The Agent will make the reimbursement using the same means of payment as you used for the initial transaction, unless you have expressly agreed otherwise; in any event, you will not incur any fees as a result of the reimbursement. However, if you requested that the Agent begins the performance of services during the cancellation period, you shall pay an amount which is in proportion to what has been performed until you have communicated to the Agent your cancellation of this contract, in comparison with the full coverage of the contract.
------------------------------------------------------ cut here ----------------------------------------------------------------
Complete, detach and return this form ONLY IF YOU WISH TO CANCEL THE CONTRACT.
Cancellation Notice to be Included in Notice of the Right to Cancel
To: DM&Co, 170 Greenford Road, Harrow, HA1 3QX email address firstname.lastname@example.org
I/We* hereby give notice that I/we* wish to cancel my/our* contract …………………………….
Address of Property at ____________
* delete as appropriate
Sole Trader MR. R. L. OWEN LLB HONS, TRADING AS DM&CO.
Address of Business 170 GREENFORD ROAD, HARROW, HA1 3QX to which documents can be served.
DM&Co is Registered with THE PROPERTY REDRESS SCHEME (PRS)
We are urgently looking for further properties to let to first class waiting Applicants.
Can you, your friends or family assist at all please?