Louvain properties

  TERMS/LETTINGS

FULL MANAGEMENT TERMS OF BUSINESS

This Agreement is made between the Landlord of the property as named at the end of this Agreement (the Landlord) and Louvain properties acting as agent for the Landlord and hereinafter referred to as the Agent

(1) AGENTS RESPONSIBILITIES

1.1 As soon as the Landlord has instructed the Agent, upon signing this Agreement, the Agent will:

1.1.1 provide a rental valuation of the property and offer advice as required; and

1.1.2  market and advertise the property in such a way as the Agent considers fit in order to find a suitable tenant.

1.2 The Agent shall interview and select prospective tenants. This will include:

1.2.1  conducting a credit reference search as appropriate; and

1.2.2  applying for and checking references; and

1.2.3 where applicable, obtaining references from previous landlords and their agents.

1.3  The Agent will collect and account for rental payments on a monthly basis by submitting a statement of income and expenditure to the Landlord.

1.4  On or around the agreed day of the month, the Agent will credit to the Landlords nominated bank / building society account the total rent received from the tenant minus:

1.4.1  commission at the agreed rate referred to in Clause (4) of this Agreement; and

1.4.2  any management expenditure incurred by the Agent in accordance with Clause 1.13.

1.5  On signing this Agreement the Landlord authorises the Agent to take reasonable action as is necessary to pursue rent arrears and where appropriate to instruct a solicitor to institute legal proceedings in the Landlords name if a tenant is in breach of the tenancy agreement. The Landlord agrees to pay the reasonable costs arising from such proceedings.

1.6 The Agent will prepare a tenancy agreement and specified notices in accordance with the relevant Housing Act(s) and/or other legislation, subject to payment to the Agent from the Landlord of the relevant fees detailed in Clause (4) of this Agreement.

1.7 The Agent will prepare a detailed Inventory and Schedule of Condition of the property, prior to the commencement of the tenancy, subject to payment to the Agent from the Landlord of the relevant fee detailed in Clause (4) of this Agreement.

1.8  The Agent will advise on and assist in the transfer of utility service accounts and notify the relevant authorities of any change in occupancy, providing meter readings where applicable and possible. Telecommunication providers will usually require instructions from both the tenant and the landlord. As the landlord you are responsible for all standing charges whilst the property is not subject to a tenancy agreement. Ie when the property is vacant.

1.9  The Agent will check the tenant out of the property on termination of the tenancy and assess the overall condition of the property with reference to the Inventory and Schedule of Condition.

1.10  On termination of the tenancy the Agent agrees to re-let the property at an appropriate market rental, unless otherwise instructed by the Landlord.

1.11  When instructed by the Landlord, the Agent agrees to serve the required two calendar months Notice of Termination upon the tenant in accordance with the relevant Housing Act(s) and/or other legislation.

1.12  The Agent will renew the tenancy to the existing tenant at the end of the term, unless otherwise instructed by the Landlord. Extension /renewal of tenancy for 6/12 months will be charged at £49 to be paid by the tenant.

1.13  The Agent will, where necessary, organise any minor repairs, maintenance or replacements to the property up to the sum of £200 within reason.

1.13.1  where more serious repairs are needed and/or insurance work, the Agent will contact the Landlord for approval or instructions in regards to the work

1.13.2  in case of emergency the Agent reserves the right to carry out any repair without prior approval.

1.14 The Agent will advise on and ensure compliance with the Gas Safety (Installation and Use) Regulations 1998 with regard to the inspection, maintenance, and keeping of records in respect of gas appliances in tenanted premises, the Landlord being responsible for all costs involved.

1.14a Where the Agent is not provided with a copy of the valid Gas Safety Certificate before the commencement of the tenancy or within 7 days of it being completed during the tenancy, the Agent will automatically arrange for one to be completed without prior consultation with the Landlord, the Landlord being responsible for all costs involved.

1.15  In the event that the Landlord is or intends to be resident outside of the UK for more than 6 months of the tenancy, it is the landlords responsibility to liaise with HM Revenue & Customs and subsequently make quarterly payments to HM Revenue & Customs in accordance with the Non-Resident Landlord Scheme.

1.16  The Agent will deal with any necessary insurance claim on the Landlords behalf, at a charge equivalent to 10% of the value claimed.

1.17  The agent will visit the property after the third month from commencement of the tenancy and then three-monthly up to the termination. Where necessary the Agent will provide written reports detailing the general condition of the property.

1.18 The Agent will collect a security deposit for the property and ensure that this is dealt with in accordance with the tenancy deposit legislation.

(2) LANDLORDS RESPONSIBILITIES

2.1  The Landlord confirms by the signing of this Agreement that he/she is the sole or joint owner of the
property.

2.2  If a mortgage exists on the property, the Landlord must obtain the lender’s consent to let.

2.3  If the Landlord is a leaseholder the terms of the lease must be checked and any necessary consent obtained to let.

2.4 The Landlord must ensure that adequate cover exists under both building and contents insurance and must inform the insurers that the property is to be let.

2.5  The Landlord agrees to provide the property with a working telephone line that is ready to be used by the tenant at the tenants own expense.

2.6  The Landlord agrees to pay any outstanding utility charges covering the period up to and including the Landlords vacation of the Property and any period when the property is unoccupied.

2.7  The Landlord will ensure that the carpets in the property are professionally cleaned prior to commencement of the tenancy and the property is in a clean condition and good decorative order.

2.8  Where applicable the Landlord agrees to have all chimneys swept before the commencement of the tenancy.

2.9  The Landlord will ensure that the property has the benefit of a working television aerial.

2.10  The Landlord will ensure compliance with the Furniture and Furnishings (Fire) (Safety) Regulations 1988 (amended 1989, 1993 & 1996) with regard to minimum fire resistant standards of specified items supplied in the course of letting property, the Landlord being responsible for all costs involved.

2.11  The Landlord will ensure compliance with the Electrical Equipment (Safety) Regulations 1994 and other relevant legislation with regard to the condition and safety of electrical equipment and appliances in tenanted premises, the landlord being responsible for all costs involved.

2.12  Before commencement of the tenancy the Landlord must arrange for a Gas Safe Register registered installer to carry out the annual Landlords Gas Safety Check and will provide the Agent with the appropriate safety certificate for all gas appliances in the property within 14 days of the check being carried out; and

2.12.1 the Landlord will ensure that all such gas appliances are thereafter checked annually by a Gas Safe Register registered installer and certificates supplied to the Agent within 14 days of the check being carried out.

2.13  The Landlord will provide the Agent with a full set of keys to the property before the start of the tenancy and a full set for each adult tenant.

2.14  The Landlord agrees at his discretion to permit the tenant to fix pictures or any other wall hangings to the walls of the property provided that picture hooks are used and not sellotape, blu-tack, nails or screws.

2.15  The Landlord will give notice in writing to the Agent of the Landlords intention to repossess the property. This notice must be given in sufficient time for the correct termination notices to be served on the tenant.

2.16  To indemnify the Agent, within 7 days of a demand for payment, against all claims, costs and expenses of whatever nature which may be made by the Department of Social Security, the Local Authority, any other Local or National Government Department, or any other person or body, which arises from the collection and payment to the credit of the Landlord any monthly rent pursuant to this Agreement.

2.17 The Landlord agrees to pay the Agents fees in accordance with Clause (4) of this Agreement.

2.18  The Landlord undertakes to notify the Agent of any discrepancies with the management of the property within 14 days of resuming responsibility at the end of the management of the property.

2.19  The Landlord agrees to inform the Agent of the fact or intention that the Landlord will be living abroad for more than 6 months during the tenancy and will ensure compliance with the Tax Management Act 1970 (Overseas Clients).

2.19.1 the Landlord is required to notify the Agent in writing of any change in residential status as regards to clause 2.19 above; and

2.19.2 the Landlord will be fully responsible for any dealings and costs with 2.19

2.20  The Landlord remains responsible for the supervision of the property whilst unoccupied although the Agent reserves the right to arrange visits by staff in the process of re-letting. The Landlord will remain responsible for ensuring suitable protection for water systems from frost or cold weather damage. The Landlord should therefore ensure that such risks are covered by insurance and that adequate arrangements are made with a third party to protect against such an event.

2.21  The Landlord agrees to inform the Agent in writing of any change to his contact details.

2.22  The Landlord agrees to inform the Agent of any periods of absence or holiday and to provide emergency contact details that can be used by the Agent if necessary. The Landlord will notify the Agent in writing of any change to the emergency contact details that are to be kept on the Agents records.

2.23  The Landlord agrees to inform the Agent of any restrictions in the head lease of the property (where applicable) and provide copies of this information. The Landlord also agrees to provide the Agent with details of any restrictions to the tenancy imposed by his mortgage company, insurer or other relevant company.

2.24  The Landlord agrees to provide the Agent with a valid Energy Performance Certificate (EPC) for the property before marketing of the property commences. The EPC must be made available to the tenant prior to the signing of the tenancy agreement. Where there is not a valid EPC in place, the Landlord authorises the Agent to arrange the completion of the EPC at the landlords expense prior to marketing the property as available to let.

2.25  The Landlord confirms that he is aware of the tenancy deposit legislation and allows the Agent to register and administer the deposit in accordance with the instructions on the completed Landlord Questionnaire.

2.26  The landlord confirms that there are adequate smoke alarms at the property and where there are not mains-powered alarms he will provide a smoke alarm on the ceiling of the hallway for each floor of the property. Where there are not adequate smoke alarms, the Agent will arrange for installation at the landlords expense.

(3) GENERAL TERMS

3.1  The fees as set out in Clause (4) of this Agreement may be varied upon agreement in writing by the parties to this contract.

3.2  Rental payments received will be held in a non-interest bearing account before being transferred to the Landlord.

3.3 The Agent has the authority to sign the tenancy agreement and legal notices, on behalf of the Landlord.

3.4  Expenditure incurred by the Agent in respect of maintenance and management of the property will be recovered from the current rental income or funded by the Landlord where expenditure is in excess of rental income.

3.5  Value Added Tax (VAT) is not currently being charged by Louvain properties, this may very well change in the future and landlords will be given three months notice if this is to change.

3.6 Unless otherwise instructed by the Landlord, the Agent is permitted to erect a To Let board signifying that the property is available for letting.

3.7  On termination of the final tenancy and vacation by the tenant, responsibility for the property will revert to the Landlord.

3.8a  Either party may terminate this Agreement after the first 12 months of service by way of three months notice, such notice to be in writing in each case.

3.8b  Or on the occasion of a material breach of any condition of this Agreement during a tenancy or by way of three months notice, such notice to be in writing in each case.

3.8c  Once a tenancy has ended and when the property is vacant the landlord may terminate this Agreement by serving 2 weeks notice in writing.

3.8d  Where the Landlord intends to continue letting to tenants introduced by the Agent after termination of this Agreement, a let only fee of 70% of one months gross rental will be payable to the Agent.

3.9 This Agreement constitutes a sole agency agreement for letting purposes and the Landlord agrees that the Agent has sole rights to market the property to let for a period of 2 weeks.

3.10  Where appropriate, the Agent reserves the right to assign the rights and/or obligations of the Agent under this Agreement.

(4) FEES AND COMMISSIONS

The Landlord agrees to pay to the Agent the following fees and commissions:

4.1 Management commission at the rate of 10% of the gross rent payable.

4.2  A fee of £100 for the preparation of the Tenancy Agreement / Tenancy Set-up Fee.

4.3  A fee of £25 per item for the preparation and issuing of notices, memorandums and extension documentation and £49 for the renewal of the tenancy.

4.4  An inventory preparation fee of £80 for an unfurnished property and £140 for a furnished property. These prices are only a guide as the final fee can vary according to property size and condition. Also if we fully manage the property.

4.5 On initial sign up with Louvain Properties an unfurnished inventory is included in the sign on fee.

4.6  Where the Landlord requests a detailed statement of accounts for the tax year then a fee of £20 will be payable to the Agent.

4.7  A charge equivalent to 10% of the total value claimed for any insurance claim made by the Agent on the Landlords behalf.

4.8  A charge equivalent to 5% of the total costs for arranging any major repairs or any maintenance over the value of £2500

4.9  The minimum fee of £250 in the case of early termination of this Agreement.

4.10 In the event of a party introduced by the Agent subsequently purchasing the property from the Landlord, whether before or after entering into a tenancy agreement, commission shall be payable to the Agent on completion of the sale at a rate of 1% of the sale price.

LET ONLY TERMS OF BUSINESS

This Agreement is made between the Landlord of the property as named at the end of this Agreement (the Landlord) and Louvain properties acting as agent for the Landlord and hereinafter referred to as the Agent.

(1) AGENTS RESPONSIBILITIES

1.1 As soon as the Landlord has instructed the Agent, upon signing this Agreement, the Agent will:

1.1.1  provide a rental valuation of the property (market appraisal) and offer advice as required; and

1.1.2  market and advertise the property in such a way as the Agent considers fit in order to find a suitable tenant.

1.2 The Agent shall interview and select prospective tenants. This will include:

1.2.1  conducting a credit reference search as appropriate; and

1.2.2  applying for and checking at least 2 references; and

1.2.3  where applicable, obtaining references from previous landlords and their agents.

1.3  The agent will receive and account for the collection of the first months rent together with security deposit equivalent to £400 or whatever is decided by landlord by submitting a statement of income and expenditure to the Landlord. Where the Landlord has consented that the tenant may keep pets in the property then this security deposit will be a sum decided by the landlord.

1.4  The Agent will credit to the Landlords nominated bank / building society account within 14 days of the start of the tenancy the total rent for the first month received from the tenant, less commission at the agreed rate referred to in Clause (4) of this Agreement.

1.5  The Agent will prepare a tenancy agreement and specified notices in accordance with the relevant Housing Act(s) and/or other legislation, subject to payment to the Agent from the Landlord of the relevant fees detailed in Clause (4) of this Agreement.

1.6  The Agent will prepare a detailed Inventory and Schedule of Condition of the property, prior to the commencement of the tenancy, subject to payment to the Agent from the Landlord of the relevant fee detailed in Clause (4) of this Agreement.

1.7 The Agent will advise on and assist in the transfer of utility service accounts and notify the relevant authorities of any change in occupancy, providing meter readings where applicable and possible.

1.8  The Agent will arrange for the tenant to sign a standing order mandate to pay rent to the Landlord’s nominated account after the initial payment, providing bank details supplied in advance.

1.9  The Agent will collect a security deposit for the property and ensure that this is dealt with in accordance with the tenancy deposit legislation. However, this deposit will not be held by Louvain Properties. This will have to be held by the owner of the property in an appropriate government scheme such as the DPS. If Louvain Properties are required to hold this deposit an additional £100 fee is required.

(2) LANDLORD’S RESPONSIBILITIES

2.1 The Landlord confirms by the signing of this Agreement that he/she is the sole or joint owner of the property.

2.2  If a mortgage exists on the property, the Landlord must obtain the lender’s consent to let.

2.3 If the Landlord is a leaseholder the terms of the lease must be checked and any necessary consent obtained to let.

2.4  The Landlord must ensure that adequate cover exists under both building and contents insurance and must inform the insurers that the property is to be let.

2.5  The Landlord will ensure compliance with the Furniture and Furnishings (Fire) (Safety) Regulations 1988 (amended 1989, 1993 & 1996) with regard to minimum fire resistant standards of specified items supplied in the course of letting property, the Landlord being responsible for all costs involved.

2.6  The Landlord will ensure compliance with the Electrical Equipment (Safety) Regulations 1994 and other relevant legislation with regard to the condition and safety of electrical equipment and appliances in tenanted premises, the Landlord being responsible for all costs involved.

2.7  Before commencement of the tenancy the Landlord must arrange for a Gas Safe Register registered installer to carry out the annual Landlords Gas Safety Check and will provide the Agent with the appropriate safety certificate for all gas appliances in the property within 14 days of the check being carried out; and

2.7.1 the Landlord will ensure that all such gas appliances are thereafter checked annually by a Gas Safe Register registered installer and certificates supplied to the Agent within 14 days of the check being carried out.

2.8  The Landlord is responsible for instigating and paying for any legal action arising from non-payment of rent, or any other matters relating to the tenancy.

2.9 To indemnify the Agent, within 7 days of a demand for payment, against all claims, costs and expenses of whatever nature which may be made by the Department of Social Security, the Local Authority, any other Local or National Government Department, or any other person or body, which arises from the collection and payment to the credit of the Landlord any monthly rent pursuant to this Agreement.

2.10  The Landlord agrees to provide the property with a working telephone line that is ready to be used by the tenant at the tenants own expense.

2.11  The Landlord will ensure that the property has the benefit of a working television aerial.

2.12  The Landlord agrees to pay the Agents fees in accordance with Clause (4) of this Agreement.

2.13 The landlord agrees to supply the agent with and pay for a valid Energy Performance Certificate (EPC) for the property before marketing of the property commences. This is to be made available to the tenant prior to the signing of the tenancy agreement.

(3) GENERAL TERMS

3.1  The fees as set out in Clause (4) of this Agreement may be varied upon agreement in writing by the parties to this contract.

3.2  The Agent has the authority to sign the tenancy agreement and legal notices on behalf of the Landlord.

3.3  Value Added Tax (VAT) at the prevailing rate will not currently be chargeable on commission and fees.

3.4 The Landlord may terminate this Agreement in writing at any time before the completion of the tenancy documentation by the tenant, subject to payment of

3.4.1 any reasonable costs incurred by an accepted applicant for a proposed tenancy, where an offer of the tenancy to the applicant has been made.

3.5  Where appropriate, the Agent reserves the right to assign the rights and/or obligations of the Agent under this Agreement.

3.6  This Agreement constitutes a sole agency agreement for letting purposes and the Landlord agrees that the Agent has sole rights to market this property to let for a period of 26 weeks.

3.7  Unless otherwise instructed by the Landlord, the Agent is permitted to erect a To Let board signifying that the property is available for letting.

(4) FEES AND COMMISSIONS

The Landlord agrees to pay to the Agent the following fees and commissions:

4.1  For finding and installing a tenant the Landlord will pay the Agent £199

4.2  A fee of £25 per item for the preparation and issuing of notices, memorandums and extension

documentation.

4.3  In the event of a party introduced by the Agent subsequently purchasing the property from the Landlord, whether before or after entering into a tenancy agreement, commission shall be payable to the Agent on completion of the sale at a rate of 1% of the sale price (if applicable).

4.4 A fee of £49 for the renewal of the tenancy after the initial fixed term.