LETTINGS AGENCY AGREEMENT

Transcription

1 AGENCY AGREEMENT - This agreement is made between the Landlord of the property (as named at the end of this agreement) and GIGGS & COMPANY letting agents who agree to act as agent for the Landlord and are hereinafter 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. FULL MANAGEMENT SERVICE - GIGGS & COMPANY letting agent provides a property management service to the Landlords 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 be levied at the outset for arranging the tenancy. The Full Management Service includes: 1. Advising as to the likely rental income. 2. Advertising and generally marketing the property with full colour particulars and Internet advertising. 3. Interviewing prospective tenants and taking up references. Where necessary, additional security would be requested by means of a guarantor. 4. Preparing the Tenancy Agreement necessary for the Landlord to gain protection under the relevant Rent and Housing Acts. 5. Preparing an inventory and schedule of condition please refer to the costing summary. 6. Liaising with a Landlord s mortgager where necessary with regards to references and Tenancy Agreement. 7. Taking a deposit from the tenant to be held by the Agent as stakeholders until the end of the tenancy when the Property and contents have been checked for unfair wear and tear, including administration of the Deposit Protection Scheme 8. Collecting the rent monthly and paying over to our Landlord monthly (normally sent within 3 working days of collection) any fees or expenses due or incurred for the period. Payments will be made by direct bank transfer and a detailed rent statement will be forwarded to the Landlord. 9. Transferring of council tax into the tenants names. 10. Regular visits of the property. The first visit will take place within the first 6 weeks of the tenancy commencing and are then carried out on a biannually basis. Responsibility for and management of empty property is not included, and will only be carried out by special arrangement. 11. Co-ordination of minor repairs or maintenance including arranging for tradesmen to attend the Property and obtaining estimates where necessary, checking works and settling accounts from rents received. 12. Arrange estimates for major works by approved contractors to be sent to the Landlord. 13. Serving all legal notices as required. 14. Carrying out a full property visit and inventory check at the end of tenancy and dealing with matters relating to unfair wear and tear before releasing the tenant s deposit.

2 SCALE OF FEES Fully Management Fees: Rent Collect fees: Rent Guarantee Insurance: Tenancy Set-up Fee for management and security deposit: 12% inc VAT of rent per month (10% + VAT) 8% inc VAT of rent per month (8% + VAT) from 140 INC VAT for six months tenancy subject to terms& conditions From INC VAT for twelve months tenancy subject to terms & conditions 210 INC VAT Inventory: 1 Bed Property (8 rooms max) INC VAT 2 Bed Property (9 rooms max) INC VAT 3 Bed Property (10 rooms max) INC VAT 4 Bed Property (11 rooms max) 108 INC VAT 5 Bed Property (12 rooms max) 120 INC VAT For pricing purposes additional reception rooms, studies, conservatories, bathrooms, cellars and other miscellaneous room types are added to the total sum of the number of bedrooms within the property and are charged at 5 per additional room. NB Stairs and landing are classed as one room combined. Additional fees applying to full management service (all fees inc VAT) Preparing an Energy Performance Certificate Renewal of existing tenancy: Minimum Fee: (in case of contract termination) Redirection of mail overseas: Duplication & Testing of extra keys: Faxes & overseas telephone calls: Care taking i.e. void between lets: Gas safety certificate Portable appliance electrical testing NAPIT electrical certificate Risk assessment for legionella Cost of postage Key costs Telephone costs 15 per visit subject to quotation subject to quotation 180 subject to quotation 60 subject to quotation

3 LET ONLY SERVICE - Where the Landlord only wishes the agent to find a suitable tenant the agent can provide a let only service. THE LET ONLY SERVICE INCLUDES ONLY PARTS 1-7 (of the Fully Managed service) The fees for the let only service are payable at the commencement of the tenancy Additional items and other expenses will be charged according to the scale of fees defined below. Let only service: 50% of Monthly rent agreed min 420 INC VAT Inventory for let only service: Check in with tenants Check out with tenants Check out and deposit negotiations/cleaning and damages Tenancy renewals As above INC VAT INC VAT INC VAT INC VAT ADDITIONAL FEES FOR ADD ONS TO THE PART MANAGED SERVICE Check out with tenants inc VAT End of tenancy check out and deposit negotiations inc VAT (Arranging any cleaning/repairs to property and dealing with the DPS adjudication if required.) Property visits 15 per visit

4 Let only Rent Collect Fully Managed Initial market appraisal Commission and provision of an EPC * * * Preparation of marketing material Marketing of property Accompanied viewings of property Preparation of leases Negotiation of lease details with tenants Taking up references on tenants Preparation of inventories and schedules of conditions * * * Checking of inventories and schedules of condition with * ingoing tenants Taking and holding deposits Arranging safety checks of gas and electrical installations * * * Periodic checking of property during the tenancy period Organisation and management of repairs/cleaning Preparation of rental statements Serving notices to quit Checking tenants out against inventories and schedules of condition * included * additional costs as above

5 GENERAL AUTHORITY: The Landlord confirms that he/she is the sole or joint owner of the Property and that he/she has the right to rent out the Property under the terms of mortgage or head lease. Where necessary, the Landlord confirms that permission to let has been granted by the mortgager. The Landlord authorises the Agent to carry out the various duties of property management as detailed in 1-15 previously. The Landlord also agrees that the Agent may take and hold deposits as a Stakeholder and any interest earned will be for the benefit of GIGGS & COMPANY for administering such. It is declared that the agent may earn and retain commissions on insurance policies issued. REASONABLE COSTS AND EXPENSES: The Landlord agrees to repay the Agent for any reasonable costs, expenses or liabilities incurred or imposed on the Agent provided that they were incurred on behalf of the Landlord in pursuit of the Agent s normal duties. To assist the Agent in carrying out his duties effectively, the Landlord agrees to respond promptly with instructions where necessary to any correspondence or requests from the Agent. MAINTENANCE: The Landlord warrants that the Property is made available in good and lettable condition and that the Property and all fixtures and furnishings conform to the current fire safety regulations. The Landlord agrees to make the Agent aware of any on-going maintenance problems. The Agent would normally request authorisation in advance, although it is agreed that in an emergency or for reasons of contractual necessity where reasonable endeavours have been made to contact the Landlord, the Agent may authorize work up to the amount of 200. The agent endeavours to select competent tradesmen at a reasonable price 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 gas appliances. The Agent will carry these out on the Landlord s behalf and administer the necessary inspection and maintenance records. OVERSEAS RESIDENTS: When letting property and collecting rents for Landlords overseas, the Agent is obligated by the Taxes Management Act (TMA)1970 and the Taxation of Income from Land (Non-Residents) Regulations 1995 to deduct tax (at the basis rate) to cover any tax liability, unless the Landlord has been authorised in writing by Inland Revenue to receive rent gross. In this situation, the Agent also requests that the Landlord appoints an accountant or reserves 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 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. 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. SERVICES: The agent will take meter readings whenever possible at each change of occupation in the Property. 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 the post office to re-direct all mail to their new address; we will not accept responsibility to re-direct mail and it is not always possible to rely on tenants to forward mail.

6 INVENTORY: The Agent will prepare an inventory for the Property and a charge will be made for this depending on the size of the property. The standard inventory will include all removable items in the Property (except those of negligible value) plus carpets, paint work, wall coverings, curtains, mirrors, sanitary ware and other articles that, in the opinion of the Agent, need regular checking. Please note it will be necessary for the agent s representative to disturb the fittings whilst carrying out the inventory these will be replaced to their best ability. Lofts and cellars are not included in our inventory. Landlords should not leave any articles of exceptional value in the Property without prior arrangement with the Agent. The standard inventory service also includes a full schedule of condition (condition, colour & decoration of ceilings, walls, doors and fittings etc.) Any locked rooms or cupboards containing Landlords personal effects are not included; please check that access is not prevented to the managing agent in case of emergency. Please make sure that any furniture in these rooms is compliant with the Furniture and Furnishing (fire)(safety) Regulations KEYS: The agent requires 1 set of all keys before the tenancy commences to be held at their management department, and one set for each tenant going into the property. GIGGS & COMPANY can arrange for keys to be cut and tested, please refer to our schedule of fees. TENANCY AGREEMENT: 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 or his advisors or mortgagers 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 the Landlord may have the tenancy agreement amended by their own advisor at their own expense) It is agreed that the Agent may sign the tenancy agreement(s) on behalf of the Landlord. PROPERTY VISITS: Under the Full Management Service only, the Agent will normally carry out inspections on a biannually basis starting after the first month. It is not the intention to check every item of the inventory at this stage; the visit 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, main living areas and gardens.) Where the tenants have access to communal areas or gardens these are the responsibility of the landlord to check on a regular basis and liaise with managing agent appointed by the freeholder. Giggs and company will not be held responsible for not reporting any issues in any shared communal areas. Where these were felt to be unsatisfactory, a more detailed visit would generally be made. Following the departure of tenants, the Agent carries out a final visit of the property. 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 the Landlord require it. Any deficiencies or dilapidations would normally be submitted to the Landlord together with any recommended deductions or replacement values. DEPOSITS AND FLOATS: A deposit will be taken from the tenant and registered with the Deposit Protection Service. As standard this would be 1.5 the monthly rent amount, or 2 months rent when the tenants have pets. This is taken as protection against any damage above fair wear & tear for the landlord to make a claim at at the end of the tenancy. Please note that if you choose not to have an inventory carried out, it is unlikely that you would be successful in making any claim for any damages. TERMINATION: This agreement may be terminated by either party by way of three months written notice. The Minimum Fee of 300 (INC VAT) applies if on termination the total fees paid are less than the Minimum Fee. The Landlord should 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 being 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 case of a fixed term tenancy which is due to expire.

7 SOLE LETTING RIGHTS: It is agreed that only the Agent may let the Property for a minimum period of six weeks. SAFETY REGULATIONS: 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 any furniture and soft furnishings that are provided. The following regulations apply: Furniture and Furnishings (Fire) (Safety) Regulations 1988 Gas Safety (Installation and Use) Regulations 1994 Electrical Equipment (Safety) Regulations 1994 The Plugs and Sockets (Safety) Regulations 1994 The smoke and carbon monoxide alarm Regulations 2015 The Landlord confirms that he/she is aware of these obligations and that the Agent has provided sufficient information in the form of explanatory leaflets 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. The agent shall ensure that all relevant equipment is checked at the beginning of the tenancy as required. The Landlord agrees to repay the Agent against any costs in incurring any reasonable expenses or penalties that may be suffered as a result of non- compliance of the Property to fire and appliance safety standards INSTRUCTIONS: It is agreed that any instructions to the Agent from the Landlord regarding termination, proceedings, major repairs, payment details or other significant details regarding the letting be confirmed to the Agent in writing. SALE OF PROPERTY: In the event of a party introduced by the Agent (or any person or body corporate associated with that party) subsequently purchasing the Property, whether before or after entering into a Tenancy Agreement, commission shall be payable by the Landlord to the Agent on completion of the sale at the rate of 1 % of the sale price, plus VAT INSURANCE: The Landlord shall be responsible for the Property being adequately insured and that the insurance policy covers the situation where the Property is let. LEGAL PROCEEDINGS: The Agent will act on any delays of payment or other defaults in the first instance. Where the Agent has been unsuccessful in these initial actions, 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 Landlords behalf). The Landlord is responsible for payment of all legal fees and any related costs (where applicable) COOLING OFF PERIOD: You have the right to cancel this agreement if it has not been signed within the Giggs & Company office within 14 days from the date of this agreement (known as the Cooling Off Period ) by serving written notice on us to that effect, whereupon this agreement will come to an end immediately. You request by signing this agreement that work is commenced immediately on your behalf and you agree therefore that should you exercise your right to cancel this agreement within the Cooling Off Period, you may be responsible for any costs incurred on your behalf prior to receipt by us of our notice of cancellation.

8 ACCEPTANCE & VARIATION The Agent may vary the terms & conditions of this Agreement at any time or times, but only by prior written notification. PLEASE DELETE AS APPLICABLE: I/we confirm that we have read the attached Agreement and wish the Agent to undertake the Let only service, Part managed Or Full management service (Please circle which) Inventory/schedule of condition Annual gas safety certificate Y/N Y/N I/we also confirm that we are the sole/joint owners of the Property known as: Address of Property_ Post Code Signed: Date: (IF PROPERTY IS JOINTLY OWNED ALL PARTIES SHOULD SIGN) Landlord s Full Name(s): Signed on behalf of the Agent: Signed: Date:

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