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Landlord Terms & Conditions

Wednesday, 23rd May, 2012

AGENCY AGREEMENT This agreement is made between the Landlord of the property (as named at the end of this agreement) and RENTOLEASE acting as agents 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 letting and management service offered and the scale of fees charges. STANDARD MANAGEMENT SERVICE RENTOLEASE provides a property management service to owners (and superior landlords) wishing to let out their property. The standard fee for 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 tenancy. The Standard Management Service includes: 1. Advising as to the likely rental income. 2. General marketing of the property. 3. Interviewing prospective tenants and taking up full references including employer or previous landlord character reference and an independent character reference and if requested a credit check. 4. Preparing the Tenancy Agreement and corresponding Notice necessary for the Landlord to gain protection of the relevant Rent and Housing Acts, renewing the Agreement where necessary at the end of the Term. 5. Taking a deposit from the tenant to be held by the Agents as stakeholders until the end of the tenancy when the property and contents have been checked for unfair wear and tear. 6. Demanding the rent monthly and paying over to the Landlord monthly ( normally sent within 15 days of collection) less any fees or expenses due or incurred for the period. Payments will be made by direct bank transfer. 7. Arrange with service companies (principally electricity, gas and Council Tax) for meter readings and advising them of the transfer of service contracts to the tenant at the beginning of each tenancy. 8. Regular visits of the property are carried out. Responsibility for and management of empty property is not normally included, and will only be carried out by special arrangement. 9. Co-ordination or repair or maintenance including arrangement for tradesmen to attend the Property and obtaining estimates where necessary, supervising works and settling accounts from rents received. 10. Making payments on behalf of the landlord from rents received for water rates, insurance premiums, etc. 11. Carrying out a full property inspection and inventory check at the end of the tenancy and dealing with matters relating to unfair wear and tear before releasing the tenant's deposit. Additional items and other expenses will be charged accordingly to the scale of fees defined. Although the aim is to take every care in managing the property, RENTOLEASE cannot accept responsibility for non-payment of rent or other defaults by tenants, or any associated legal costs incurred in their collection. An insurance policy is recommended for this eventuality. SCALE OF FEES Standard Management Fee: 11% (Subject to a min fee of £30) Tenancy set up fee £100 Redirection of mail overseas Cost of postage Faxes & Overseas telephone calls Telephone costs Issuing Notice of Seeking Possession £50 Change of tenancy Fee £75 Please note all the above will be subject to VAT at 20% GENERAL AUTHORITY The Landlord confirms that he/she is the sole or joint owner of the property and 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 let has been granted by the mortgagee. The Landlord authorises the Agent to carry out the various duties of the property management as detailed 1 - 12 previously. The Landlord also agrees that the Agents may take and hold deposits on behalf of the Landlord. It is declared that the Agent may earn, from time to time, commissions on insurance policies. INDEMNITY The Landlord agrees to indemnify the Agent against any costs, expenses or liabilities incurred or imposed on the Agents 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 request from the Agent. MAINTENANCE The Landlord warrants that the Property is made in good and lettable condition and that the Property, beds, sofas and all other soft furnishings all conform to the current fire safety regulations. The Landlord agrees to make the Agent aware of any ongoing maintenance problems. Subject to retaining minimum expenditure limit (UK Landlord: £100, Overseas landlord: £200) 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. It is agreed that in an emergency or for any reason of contractual necessity where reasonable endeavours have been made to contact the Landlord, the Agent may exceed the limits specified. The Agent endeavours to select competent tradesmen at a reasonable price but is unable to personally guarantee the standard of workmanship 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 any gas appliances. The Agent will carry these out on the Landlord's behalf and administer the necessary inspection and maintenance records. COUNCIL TAX: Payment of Council Tax will normally be the responsibility of the tenants of the property. However, Landlords should be aware that when 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 Agents will take meter readings whenever possible as each change of occupation on the Property and inform the service companies (electricity and gas) of these readings and change of occupation. In many cases, there are service companies (e.g. B.T.) require that the new occupiers formally request and authorise the service and it is not possible for the Agents 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. INVENTORY Should it be necessary, the Agents will prepare an inventory for the Property and a charge will be made for this to be included in the initial fee. The standard inventory will include all removable items in the Property (except those of negligible value) plus carpets, curtains, mirrors, sanitary ware and other articles that, in the opinion of the Agent, need regular checking. Landlords should not leave any articles of exceptional value in the Property without prior arrangement with the Agent. The standard inventory service does not include a photograph although this can be arrange at the Landlord's request. LETTING AGREEMENT The Standard Management Service includes the preparation of a letting 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 advisor or mortgagees require amendment of the contract or require the Agent to enter into further work or correspondence, a further fee for this work will be requested. It is agreed that the Agent may sign the tenancy agreement(s) on behalf of the Landlord. INSPECTIONS Under the Standard Management Service, the Agent will normally carry out visits regularly after the first month at the Agents discretion, It is not the intention to check every item of 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 (carpet, walls, cooker, main living areas and gardens.) Where these were felt unsatisfactory, a more detailed inspection would be generally made. 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 require by the Landlord. Any deficiencies or dilapidation's would normally be submitted to the Landlord together with any recommended deductions or replacement values. It is agreed that the Agent's judgement will be final in this matter. Should it be necessary, the case will be referred to arbitration with the Association of Residential Letting Agents, and costs being shared by Landlord and Tenant, or as directed by the arbitrators. DEPOSITS Upon signing the tenancy agreement, the Agent will take a dilapidation's deposit from the tenant(s) in addition to any rents due. The purpose of the dilapidation's deposit is to protect the Landlord against loss of rent or damage to the Property during the tenancy itself. These deposits are held by the Agent as stakeholder and will be kept in a separate and secure clients account ready for refunding (less and charges due) at the end of the tenancy. The Agents can at their discretion if the rent is late, use the deposit to pay the Landlord rent. TERMINATION This agreement may be terminated by either party by way for three month's written notice. The minimum fee applies if on termination the total fees due are less than the minimum fee. A placement fee equivalent to one month's rent will be payable where the Landlord intends to continue letting to tenants introduced by the Agents after the termination of this agreement. The Landlord shall provide the Agents with any requirement for return and repossession of the Property at the earliest opportunity. The Landlord 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 onto the Landlord as soon as possible; Landlords should be aware that the legal minimum notice period under Short Assured Tenancies is two months after the initial six month period. If the tenant refused to leave after this time then the Landlord would need to instruct their solicitor to take proceedings to remove the tenants and this cost would be met solely by the Landlord. SAFETY REGULATIONS The letting of the Property is now closely regulated with respect to consumer safety. The law make particular demands regarding the safety, servicing and inspection of the gas and electrical appliances and installations within a property. The following regulations apply: - Gas Safety (Installation and Use) Regulations 1995 - Electrical Equipment (Safety) Regulations 1994 - Furniture and Furnishings (Fire) (Safety) Regulations 1988 -Housing (Scotland) Act 2006 - smoke alarms -Energy Performance Certificate (EPC) The Landlord confirms that he/she is aware of these obligations and that the Agents has provided sufficient information (via explanatory leaflets available on request) to assist with compliance. It is agreed that the Landlord shall ensure that the Property is made available for letting in safe condition and in compliance with the above regulations and shall ensure that all electrical equipment is checked at the beginning of the tenancy and every year thereafter. The Landlord agrees to indemnify the Agent against any 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 Agents from the Landlord regarding termination, proceedings, major repairs, payment details or other significant details regarding the letting be confirmed to the Agent in writing. VALUE ADDED TAX VAT is currently added to our management charges at 20% and for any other fees that are charged by the Agents. 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 Any delays of payment or other defaults will be acted on by the Agents in the first instance. Where the Agent has been unsuccessful in these initial action, 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 behalf). The Landlord is responsible for payment for all legal fees and any related costs. SHORT LETS For Short Lets (i.e. less than six months) the administration overhead ( and thus the management charge) is proportionally higher. There are also some aspects of the management service that are different or cannot be provided with short lets: (a) The Agent will not always be able to interview tenants and take up references for short lets (including holiday lets) especially for visitors from abroad. (b) In may short lets (e.g. holiday lets) dilapidation deposits will not be held. (c) It may not be possible to make regular monthly payments and the Agents shall aim to pass on any rents within 30 days of receipt (d) Services (electricity, gas, etc.) will often be left connected during a holiday let and included in the quoted rent. Council tax may also be payable by the Landlord on short Lets, and in case of doubt, the Landlords is advised to contact the local council tax collection office. COMPLAINTS PROCEDURE We aim to provide the highest standards of service to all our customers. To ensure that your interests are safeguarded, a complaints procedure has been introduced. This provides for the matter to be dealt with internally and in the event that we are not able to deal with the issue to our mutual satisfaction, by reference to the property ombudsman. Our complaints procedure policy is available on request ACCEPTANCE & VARIATION The terms & conditions of this Agreement may be varied by the Agents at any time or times, but only by prior written notification. 1/We confirm that we have read the attached Agreement and wish the Agents to undertake the letting, rent collection and management. I/We also confirm that we are the sole/joint owners of the Property know as:



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