Our terms of business
The terms of the agreement set out in this document will constitute a binding legal contract. If you are unsure of your obligations under this agreement, then you are advised to take independent legal advice before signing.
Fully management service
Lanes lettings provides a property management service to owners wishing to let out there property. The standard fee for the management is taken as a monthly percentage of the gross rents due for the period of the tenancy.
The full management service includes:
- Advertising and general marketing of the property. Including erecting a TO LET board
- Interviewing prospective tenants and taking up full references, the obtaining of a Guarantor or rental insurance.
- Preparing the tenancy agreement necessary for the landlord to gain protection of the relevant rent and housing acts, and renewing the agreement where necessary at the end of tenancy term.
- Taking a deposit from the tenant, dealing with this under the requirements of chosen deposit protection scheme until the end of the tenancy when the property and contents have been checked for unfair wear and tear and handling any termination issues with the tenant and the tenancy deposit scheme provider.
- Collecting the rent monthly and paying over to the landlord monthly (usually within 14 days of collection) less 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.
- Arranging with service companies (principally gas, electric and water) for meter readings and advising them of the transfer of service contracts to the tenant at the beginning of each tenancy.
- Regular inspections of the property are carried out on a quarterly basis.
- Co-ordination of repair or maintenance including arranging for tradesmen to attend the property.
- Making payments on behalf of the landlord from rents received for costs in managing the property.
- Carrying out a full property inspection and inventory check at the end of the tenancy and, if necessary, preparing and agreeing a schedule of costs relating to any unfair wear and tear prior to release of deposit.
Additional items and other expensive will be charged according to the scale of fees defined below.
Scale of fees
[VAT at the current rate of 15% will need to be added to these fees where appropriate]
Full management service fee: 7% of rent due * Rent collection service fee: 5%
Short Lets (less than 6 months) 15% of rent due Introduction only service: £200
(less than 3 months) 20% of rent due Tenant deposit protection: £60 *
Duplication of keys: £10 Redirection of overseas mail: Cost
Arranging gas safety check: £60 + VAT Arranging a EPC: £65 + VAT
Inventories/schedule of condition*: - varies according to size of property and property contents.
* These are included in the full management service.
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. The landlord authorises the Agent to carry out the various usual duties of property management including those listed in items 1 -11 of the full management service – 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 apply to the deposit. It is declared that the Agent may earn and retain commissions on insurance policies issued.
2. LIABILITY FOR TENANT DEFAULT.
Although the aim is to take every 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. REASONABLE COSTS AND EXPENSES
3.1 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 Agents normal duties. To assist in carrying out his duties effectively, the landlord agrees to respond promptly with instructions where necessary to any correspondence or request from the Agent.
3.2 Where the agreement is cancelled under the cancellation of contracts made in a consumers home or place of work etc regs. 2008 the landlord agrees to repay any reasonable costs incurred by the Agent in carrying out his duties before the cancelation of the contract.
4. MAINTENANCE.
4.1 The landlord agrees to provide the property in good and lettable condition and that the property, beds, sofa and all other soft furnishings conform to the current fire safety regulations. The landlord agreed to make the Agent aware of any ongoing maintenance problems. Subject to retain maximum expenditure limit ( UK landlords £200, overseas landlords £300) on any single item of repair, and any other requirements or limits specified by the landlord, The agents will administer any miscellaneous maintenance work that needs to be carried out on the property (although the administration of major works or refurbishment may incur an additional charge). ‘retained maximum expenditure limit’ means that the Agent has authority to spend up to this amount (or other amount 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 limit specified. 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 this out on the landlord’s behalf and expense and administer the necessary inspection and maintenance records. The reasonable costs will be debited to the landlords 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.
5. OVERSEAS RESIDENTS.
When letting property and collecting rent for non UK resident landlords (NRL) i.e. landlords living overseas, the Agent is obliged by the income and corporation taxes act 1988 and the taxation of income from land (non residents) Regulations 1995 to deduct tax (at the basic 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 suitable 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 is minimal when all allowances are deducted.
6. COUNCIL TAX
Payment of Council tax will normally be the responsibility of the tenants in 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 rest with the owner of the property.
7. SERVICES
The Agent will take meter reading whenever possible at each change of occupation in the property and, where necessary inform the service companies (gas, electric 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 I not possible for the Agent to do this on the tenants or landlords behalf. Regarding mail, landlords should take care to inform all parties (e.g. banks, clubs, societies ect) of their new address; it is not always possible to rely on tenants to forward mail. (Full management service only)
8. INVENTORY
The deposit protection schemes established under the term of the Housing Act 2004 requires 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 depending on the size or 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 covering, curtains, mirrors, sanitary ware and articles that, in the opinion, 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 will include a full schedule of condition (condition, colour and decoration of ceilings, wall, doors and door fittings ect.). Evidence of condition or damage ( i.e. photography) will be prepared as well.
9. TENANCY AGREEMENT
The Full management service includes the preparation of a tenancy agreement in the Agents 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 to enter into further work or correspondence, a fee for the 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.
10. NOTICES
The Agent will, as necessary, 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 at the end of the tenancy.
11. RESERVATION FEES
A RESERVATION FEE IS GENERALLY TAKEN FROM A TENANT APPLYING TO RENT A PROPERTY. The purpose of this fee is to verify the tenants serious intent to proceed, and to protect the Agent against any administrative expenses that may be incurred should the tenant decide to withdraw from the application. The reservation 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 large security fee to be carried to protect against loss of rents, or insurance undertaken. The fee is not a deposit.
12 TENANCY DEPOSITS
12.1 Deposits. upon signing the tenancy agreement, the Agent will take a dilapidations deposit form the tenant(s) in addition to any rents due. The purpose of the deposit is to protect the landlord against loss or damage to the property during the tenancy itself. 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 below.
12.2 Statutory tenancy deposit protection. Where the tenancy is an assured short hold 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 14 days of receipt. The schemes are:
1. The deposit protection service (DPS)
2. My deposits
3. Tenancy deposit scheme (TDS)
12.3 Tenancy deposit information. Where statutory tenancy deposit protection applies to a tenancy deposit, the Agent will provide to the tenant within 14 days the following information required from the landlord housing act 2004
1. Information on the particular scheme under which the tenacy deposit is protected
2. Compliance by the landlord with his obligations under the act
3. Prescribed information for the tenant
More information on the requirements of the deposit protection schemes are available on the following website http://www.dirct.gov.uk and landlords are strongly urged to familiarize themselves with their legal responsibilities.
13. INSPECTIONS
13.1 Under the full management service, the Agent will normally carry out inspections quarterly starting after the first month. Such inspections do not constitute a formal survey of the property, and it is not the intention to 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 garden). Where these felt to be unsatisfactory, a more detailed inspection would generally be made.
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. Any deficiencies or dilapidations would normally be submitted to the landlord ( and, if appropriate, to the relevant tenancy deposit scheme administrator) together with any recommended deductions or replacement values.
14. TENANCY DEPOSIT DISPUTES
14.1 The Agent will attempt, by negotiation, to resolve any deposit disputes between the landlord and tenant. 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 a small claims action in the county court. An estimate of the likely costs of preparing and submitting the claim to adjudication or for small claims will be submitted to the landlord before any case is started.
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 dispersed at the end of the tenancy.
15. TERMINATION
15.1 Termination of agency agreement. This agreement may be terminates by either party by way of two months written notice after the initial 6 months period. 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 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 incurred to the date of cancellation.
15.2 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 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.
15.3 Agreements signed away from the Agents office. The cancellation of contract made in consumers home or place of work ect regulations 2008 provide that the landlord may have a right to cancel the contract if he wishes and that this right can be exercised by delivering, or sending (including by electronic mail) a cancellation notice to the agent at any time within the period of 7 days starting with day of receipt of a notice in writing of the right to cancel the contract.
16. SAFTEY REGULATIONS
WARNING: you should read and understand these obligations before signing overleaf.
16.1 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 apply
- Furniture and furnishing(fire)(safety) Regulations 1988
- General product safety Regulations 1994
- Gas safety (installation and Use) Regulations 1998
- Electrical equipment (safety) Regulations 1994
- Plugs and sockets (safety) Regulations 1994
17.2 The landlord confirms that they are aware of these obligations and that the Agent has provided sufficient information in the form of explanatory inserts accompanying this agreement 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 above regulations. \under the Full 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 Agents 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.
18. INSTRUCTIONS
It is agreed that any instructions to the agent from the landlord regarding termination, proceedings, major repairs, payment, or other significant details regarding the letter be confirmed to the Agent in writing.
19. VALUE ADDED TAX
Our fees are stated do not include VAT which should be added to the fee at the appropriate rate.
20. INSURANCE
The landlord shall be responsible for the property being adequately insured and that the policy covers the situation where the property is let. The Agent would normally be responsible for the administration of any claims arising during the period of management where the property is being managed ( i.e. this only applies to properties under the Full management service) and subject to additional charge for major works (see maintenance).
21. HOUSING BENEFIT.
The landlord undertakes to reimburse the Agent for any claims arising from overpayment which may be made by the local authority in respect of housing benefit, or other benefit scheme, paid or on behalf of the tenant(s) as rent. This undertaking shall remain in force during the currency of the tenancy and up six years thereafter, whether or not the Agent continues to be engaged to let or manage the property under this agreement.
22. 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 may then be appointment and instructed by the landlord (except where the Agent is unable, after taking reasonable efforts, to contact the landlord. In the event the Agent is authorised to instruct a solicitor on the landlord’s behalf). The landlord is responsible for payment of all legal fees and any related costs.
23. TENANT INTRODUCTION SERVICE
Where the landlord does not wish the Agent to undertake full management, the Agent can provide a tenant introduction service. The tenant introduction service only includes 1 -5 of the Full Management service as listed above. 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 requirement of the housing act 2004 and must provide the Agent with written conformation of this together with a receipt for the deposit monies received by the Agent on his behalf. The fee for the Tenant introduction service is £250 plus VAT. The fees are payable at the commencement of the property and will be deducted from the monies received by the Agent on the landlords behalf. If the tenant leaves prior to the end of the term of tenancy, through no fault of the Agent, the landlord shall not be entitled to reimbursement of any fees paid.
24. LETTING ONLY SERVICE PLUS DEPOSIT PROTECTION
Where the landlords require the Agent to deal with his legal responsibilities for the protection of tenancy deposits under the housing act 2004 (item 6 of the Full management service) then this will be charged in addition to the above Tenant introduction service.
25. LETTING AND RENT COLLECTION
Where the landlord requires the collection of rents and the deposit service (item 6 & 7 only of the Full management service as listed above) in addition to the tenant introduction services, then total fees will be 5% (of the gross rental income for the term of the tenancy) will be charge and will be collected from rents collected.
26. RENEWALS
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, no renewal fee is required from you. 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.
27. ACCEPTANCE & VARIATION.
The terms and conditions of this Agreement may be varied by either party, but only with two months prior written notice.
