Office Contact Number , Hyde Road, Paignton, Devon. TQ4 5BW.

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1 Office Contact Number , Hyde Road, Paignton, Devon. TQ4 5BW.

2 TARGET PROPERTY RENTALS RENTALS & MANAGEMENT AGENCY AGREEMENT This agreement is made between the Landlord of the property (as named at the end of this agreement) and Target Property Rentals acting as Agent for the Landlord and hereinafter referred to as the Agent. The purpose of this document is to set out clearly and concisely the extent of the rentals and management service offered and the scale of fees charged. Standard Management Service Target Property Rentals provide a property management service to Landlords wishing to rent out their property. The standard fee for management is taken as a percentage of the gross rent due for the period of the tenancy, and an administration fee will normally be levied at the outset for taking references and the tenancy. The Standard Management Service Includes:- 1) Advising as to the likely rental income 2) Advertising and generally marketing the property, including carrying out accompanied viewings. 3) Interviewing prospective Tenants and taking up full references including credit checks, employer and previous Landlord references. When necessary, additional security would be requested by means of a guarantor, who would also be fully referenced. In the case of a company, full company references would be taken. 4) Preparing the Tenancy Agreement and corresponding Notice necessary for the Landlord to gain protection of the relevant Rent & Housing Acts. 5) To liase with the Landlord s mortgagees, (where necessary), with regard to references and the Tenancy Agreement. 6) Taking a deposit from the Tenant to be held by the Deposit Protection Scheme (DPS) against dilapidation and returned when the property and contents have been checked for unfair wear and tear. 7) Collecting the rent monthly and paying over to the Landlord monthly, less any fees or expenses due or incurred for the period. Payments

3 are made directly by BACS into the Landlords bank. A detailed monthly rent statement will be sent directly to the Landlord. 8) Arranging with service companies for meter readings to be taken (principally water, electricity and gas) and then advising them of the transfer of service contracts to the tenant at the beginning of each tenancy. 9) Regular inspection of the property. (Responsibility for and management of an empty property is not normally included and will only be carried out by special arrangement.) 10)Co-ordination of repair or maintenance including arranging for tradesmen to attend the Property and obtaining estimates where necessary, supervising works and settling accounts from rents received. 11) Carrying out a full property inspection and inventory check (if applicable) at the end of the tenancy and dealing with matters relating to unfair wear and tear before authorising the release of the Tenants deposit from the Deposit Protection Scheme. 12)Additional items and other expenses will be charged according to the scale of fees defined below: Although the aim is to take every care in managing the property, TARGET PROPERTY RENTALS cannot accept responsibility for non-payment of rent or other default by tenants. Bank/overdraft charges are NOT the responsibility of TARGET PROPERTY RENTALS. A rent guarantee and legal expenses insurance policy is recommended for this eventuality. SCALE OF FEES Full Management: Setting up fee of VAT Negotiable % of the monthly rent + VAT. Tenant Find Service: 60% of first months rent + VAT (subject to a minimum of VAT) 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 the mortgage or head lease. Where necessary, the Landlord confirms that permission to rent

4 has been granted by the mortgagee. The Landlord authorises the Agent to carry out the various duties of property management as detailed in 1 12 previously. It is declared that the Agent may earn, from time to time, commissions on insurance policies issued. Indeminity The Landlord agrees to indemnify the Agent against 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. To assist the Agents in carrying out their duties effectively, the Landlord agrees to respond promptly with instructions where necessary to any correspondence or requests from the Agent. Landlords should ensure that they are able to make any mortgage payments due, even if rent monies have not been received. Maintenance The Landlord warrants that the property is made available in a good and tenantable condition and that the property, beds, sofa 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. The Agent will, on behalf of the Landlord, administer any miscellaneous maintenance work that needs to be carried out on the property. Payment for such work will either be deducted from monies due to the Landlord from the Agent, or the Landlord will be invoiced direct. The Agent endeavours to select competent tradesmen at a reasonable price but is unable to personally guarantee the standard of workmanship or accept any liability arising thereof, although the Landlord retains the right to pursue any claim against appointed tradesmen for substandard work directly. By law, it is necessary to carry out an annual inspection and service of the gas central heating system and any gas appliances. The Agent will organise this on the Landlord s behalf and administer the necessary inspection and maintenance records. Payment of such works to be deducted from monies due to the Landlord from the Agent. It is also a requirement by law to ensure the property complies with the Electrical Equipment (Safety) Regulations The Agent can also organise this check on behalf of the Landlord and administer the necessary maintenance records accordingly. Payment for such work to be deducted from monies due to the Landlord from the Agent. Overseas Landlords

5 Landlords who reside aboard should register with the Inland Revenue Non Resident Landlord Scheme. If you live abroad and do not have a Non Resident Landlord exemption number, we are required, by law, to deduct basic rate tax from rents received before forwarding payment to you. Ask us for further information or go online at and type in overseas Landlords into the search engine.

6 Council Tax Payment of Council tax will normally be the responsibility of the tenants in the Property. However, Landlords should be aware that where a property is empty, rented as holiday accommodation or 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 at each change of occupation in the property and inform the service companies (water, electricity and gas) 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 Landlords behalf. Regarding mail, Landlords should take care to inform all parties of their new address. It is not always possible to rely on tenants to forward mail. Inventory/Schedule of Condition A photographic schedule of condition and written Inventory, at the commencement of each new tenancy, will be prepared by the Agent. The cost of this is included in our initial set up charge. Rental Agreement The Standard Management Service includes the preparation of a Rental Agreement in the Agent s standard form(s) and provision of a copy of this agreement to a designated adviser or building society (if necessary). Should the Landlord or his advisers or mortgagees require amendment of the contract, or require the Agent to enter into further work or correspondence, a further fee for this work may be requested. It is agreed that the Agent may sign the tenancy agreements on behalf of the Landlord. Inspections Under the Standard Management service the Agent will normally carry out regular 3 monthly inspections. It is not the intention to check every item at this stage; the inspection is concerned with verifying the good order of the tenancy (i.e. house being used in a habitable manner) and the general condition of the property. This would normally include inspecting the main items (carpets, walls, cooker, main living area and gardens). Where these were felt to be unsatisfactory, a more detailed inspection would generally be made. Just prior to the departure of tenants, the final inspection of the property will be carried out by the Agent. Testing of all the electrical appliances heating system and plumbing is not feasible during this inspection. A qualified contractor will be appointed for this purpose should this be required by the Landlord. Any deficiencies or dilapidation

7 would normally be notified to the Landlord together with any recommended deductions or replacement values.

8 Tenants Administration Fees An administration/reference fee is taken from a tenant applying to rent a property. The purpose of this fee is to verify the tenant s serious intent to proceed and to protect the Agent against any administrative expenses (taking out credit references, conducting viewings, re advertising), that may be incurred should the tenant decide to withdraw their application. This admin fee does not protect the Landlord against loss of rent due to the tenant deciding to withdraw or references proving unsuitable, although early acceptance of rent from the applicant would not be advisable until satisfactory references have been received. Landlords should notify the Agent where they wish a larger security deposit to be retained to protect against loss of rent. Tenants Deposits Any deposit received by a rental agency must, by law, be protected within a Government authorized scheme. Target Property Rentals are registered members of the Deposit Protection Scheme (DPS). Termination This agreement may be terminated by either party by way of three month s written notice. A termination fee equivalent to one month s rent will be payable where the Landlord intends to continue letting to the tenants introduced by the Agents after the termination of this agreement. Rent Remittances Present banking arrangements are such that it is necessary for the Agents to allow approximately 7 days for rent cheques to be cleared. No rent will be payable to the Landlord until the Agent has cleared funds from the tenant. 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 an assured tenancy is generally two month s (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. Energy Performance Certificates

9 All residential rented properties must, by law, have an Energy Performance Certificate (EPC) at the commencement of a new tenancy. Once an EPC has been carried out an EPC is usually valid for 10 years. We can arrange an EPC to be carried out through our local associated Domestic Energy Adviser.

10 SAFETY REGULATIONS: Fire Regulations Under the Fire and Furnishings (safety) (Amendment) Regulations 1993 the Landlord has the obligation to ensure that all furniture in properties being rented for the first time, or any new or additional furniture being put in a property already rented out, must comply with the fire regulations by displaying a label stating that they are fire resistant. If items of furniture do not comply with the fire regulations, the Landlord must either change the items of furniture or authorise ourselves, as Agents, to either replace or remove the items before any tenancy commences. Instructions to rent a property will only be accepted if all furniture complies with the regulations. Failure to comply can result in prosecution. Electric and Gas Appliances Regulations Under the Electrical Equipment (safety) Regulations 1994and the Gas Safety (Installation and Use) Regulations 1994 and 1996, all low voltage electric appliances and all gas appliances must be checked by professional tradesmen and all items marked with the date and time of testing to comply with Government Regulations. The Landlord must carry out such tests annually or they will be carried out by the Agent at the Landlord s expense prior to the rental of the property and on an annual basis thereafter, the costs being deductible from the rent. All appliances must have instruction books left at the property. Failure to comply with the Regulations can result in prosecution. Important The Landlord agrees to indemnify the Agent against any expenses, penalties, proceedings and claims (whether civil or criminal), that may be suffered or incurred as a result of non-compliance of the property to fire, furnishings, electric and gas 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 renting must 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 associate 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 2.0% of the sale price, plus VAT (if applicable), subject to a minimum fee of 2000 plus VAT.

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12 Insurance The Landlord shall be responsible for the Property being adequately insured and that the insurance policy covers the situation where the Property is rented. The Agent has details of buildings, contents and legal protection insurance polices available to Landlords and these can be provided on request. Legal Proceedings Any delays of payment or other defaults will be acted on by the agent 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 Landlord s behalf). The Landlord is responsible for payment of all legal fees and related costs. The Agent is not responsible for any unpaid rent due to the Landlord. Tenant Find Service Where the Landlord does not wish the Agent to undertake full management, the Agent can provide a Tenant Find Service. The Tenant Find Service includes only parts 1 to 5 of the Standard Management Service as listed above. The fee for the Tenant Find Service is 60% of first months rent plus VAT (subject to a minimum fee of VAT). The 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. Signed LANDLORD (S) Signed AGENT DATED

13

14 ACCEPTANCE OF TERMS AND CONDITION AND AGENCY AGREEMENT I/we wish for Target Property Rentals to- Manage my Property Tenant Find (Please tick either box) Set up fee Tenant Find Fee Monthly Percentage fee % (TO BE FILLED IN BY THE AGENTS) Ownership of property I/we (please use block capitals) Confirm that I/we are the Sole/Joint owners of the property known as (ADDRESS OF PROPERTY TO BE RENTED) POST CODE Being the Sole/Joint owners of the above property I /we authorise/ do not authorise Target Property Rentals to sign the Tenancy Agreement on my/our behalf Acceptance (FULL MANAGEMENT ITEMS 1-12) OR (TENANT FIND ITEMS 1-5) I/we confirm that I/we have read, understand and agree to comply with the attached Terms and Conditions and wish Target Property Rentals to undertake the Renting of my/our property as described in 1-12 of this Agency Agreement for Full Management, or 1-5 for Tenant Find. Signed. Date

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