Agency Agreement
This Agreement is made between the Landlord of the
Property (as named at the end of this agreement) and MERIDIAN ESTATES LIMITED
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 letting and
management service offered and the scale of fees charged.
STANDARD MANAGEMENT SERVICE
MERIDIAN ESTATES LIMITED provides a property
management service to owners (and superior landlords) wishing to let out their
property. The standard fee for the
management is taken as 10% (+ VAT) of the gross rents due for the period of the
tenancy and a set-up fee of two weeks rent (+ VAT) will normally be levied at
the outset for taking references, excluding inventory charges.
The Standard Management Service includes:
1: Advising as to the likely rental
income.
2: Advertising and generally marketing the
Property.
3: Interviewing prospective tenants and
taking up full references including bank reference, and employer or previous
landlord character reference. Where necessary, additional security would be
requested by means of a guarantor. In
the case of a company, a full bank reference would be taken.
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 Agent until the end of the tenancy when the Property and contents
have been checked for unfair wear and tear.
6: Collecting the rent monthly and paying
over to our 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 together with a
detailed rent statement.
7: Arranging with service companies
(principally electricity and gas) for meter readings and advising them of the
transfer of service contracts to the tenant at the beginning of each tenancy.
8: Regular inspections of the Property are
carried out on a quarterly basis.
Responsibility for and management of empty property is not normally
included, and will only be carried out by special arrangement.
9: 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.
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.
12: Collecting and forwarding Landlord's
mail.
Additional items and other expenses will be charged
accordingly.
Although the aim is to take every care in
managing the Property, MERIDIAN ESTATES LIMITED cannot accept responsibility for non-payment of rent or other
default by tenants, or any associated legal costs incurred in their collection.
An insurance policy is recommended for this eventuality.
GENERAL AUTHORITY:
The Landlord confirms that he/she is the sole or joint
owner of the Property and that he 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 property management as detailed 1-13 previously. The Landlord also agrees that the Agent 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 issued.
INDEMNITY:
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 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 habitable 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. The Agent will contact the Landlord for
permission, before any miscellaneous maintenance work is carried out on the
property. It is agreed that in an emergency or for reasons of contractual
necessity where reasonable endeavors have been made to contact the Landlord,
the Agent may carryout such works. The
Agent endeavors 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.
OVERSEAS RESIDENTS:
When letting property and collecting rents for
landlords overseas, the Agent is obliged by the Taxes Management Act (TMA) 1970
(or under similar powers of any future tax legislation) to deduct monies
(currently equivalent to 24% of the gross rents) to cover any tax
liability. In this situation, the Agent
also requests that the Landlord appoints a suitably qualified accountant in
order to manage correspondence with the Inland Revenue.
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 and inform the service companies
(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 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 Agent will organize an
inventory for the Property. 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 full schedule of condition (condition, color & decoration of
ceilings, walls, doors & fittings etc.) or photography. Charges are
dependant upon habitable rooms.
INSPECTIONS:
Under the Standard Management Service, the Agent will
normally carry out inspections quarterly starting after the first month. 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 gardens.) Where these were felt
to be unsatisfactory, a more detailed inspection would generally be 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 required by the
Landlord. Any deficiencies or dilapidations would normally be submitted to the
Landlord together with any recommended deductions or replacement values. It is agreed that the Agent's judgment will
be final in this matter.
HOLDING FEES & DEPOSITS:
A holding fee is generally 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 bank
references, conducting viewings, re-advertising) that may be incurred should
the tenant decide to withdraw the application.
The holding 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 fee or deposit to be carried to protect
against loss of rents.
Upon signing the tenancy agreement, the Agent will
take a dilapidations deposit, (usually equivalent to six weeks rent at the
beginning of the tenancy) from the
tenant(s) in addition to any rents due.
The purpose of the dilapidations 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 and
will be kept in a separate and secure client account ready for refunding (less
any charges due) at the end of the tenancy.
TERMINATION:
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
onto 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.
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 type of any furniture and soft furnishings that are also
provided. The following regulations
apply:
-
Furniture and Furnishings (Fire)(Safety) Regulations 1988
-
Gas Safety (Installation and Use) Regulations 1994
-
Electrical Equipment (Safety) Regulations 1994
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.
By law, it is necessary to carry out an annual
inspection and service for the central heating and any gas appliances. Unless a
valid certificate can be provided the agent will instruct a qualified Corgi
engineer to carryout the necessary inspections and maintenance records on the
Landlords behalf. The cost of which will be deducted from the rents
received.
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 1.5% of the sale price, plus VAT (if
applicable).
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 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 any related costs.
LETTING ONLY SERVICE:
Where the Landlord does not wish the Agent to
undertake full management, the Agent can provide a Letting Service. The Letting
Service includes only parts 1 to 4 of the Standard Management Service as listed
above. The fee for the Letting Service is a one off payment of three weeks rent
plus VAT excluding inventory charges.
The fees are 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.
RENEWALS:
Where the tenancy is renewed or extended to the same tenant (or any
person associated with the tenant) originally introduced by the Agent, a
renewal fee of £50 + VAT shall be payable on the renewal date. The Agent shall
prepare the tenancy agreement, if required, for the new or extended tenancy.
ACCEPTANCE & VARIATION
The terms & conditions of this Agreement may be
varied by the Agent at any time or times, but only by prior written
notification.
I/we confirm that we have read the attached Agreement
and wish the Agent to undertake the Full Management or Letting Only service*.
* Delete as applicable
I/we also confirm that we are the sole/joint owners of
the Property known as:
Property
to be let _____________________________________________________________
Rental Marketing Price £____________PCM Term:*6 Months /*12 Months/*Either 6 or
12 Months
(If property is
jointly owned all parties should sign)
Landlord’s Name (in
Full)_______________________________
Address_______________________________________
______________________________________________
______________________________________________
Hm Tel:
_____________________________ Wk Tel:
______________________________________
Mb Tel:
_____________________________ E-Mail
Address: ________________________________
Signed:
__________________________________ _______________________________________
Date: ____________
Signed on behalf
of the Agent: ________________________________________Date: ____________
For MERIDIAN
ESTATES LIMITED
MERIDIAN ESTATES
LIMITED
190 Trafalgar Road
Greenwich London SE10 9TZ
Telephone: Tel:020-8858-5628 Fax 020-8305-0891