128 WALTER ROAD
SWANSEA SA1 5RG
between the Agent and the Landlord
It is hereby agreed that
Definitions and interpretation: The following shall have the following meanings:
1.1 “Services”: the services to be provided by the agent to the landlord and agreed in writing.
1.2 “Agreement”: the written agreement between the landlord and the agent for the provision of the services.
1.3 “Payments”: the sums due to the agent for providing the services under the agreement.
1.4 “Term”: the management period of the agreement during which the agent shall provide the services as agreed in writing between the landlord and the agent (this would normally mean the term granted by the tenancy and includes any extensions thereof wither by renewal or by the tenants holding over).
1.5 “The Tenancy”: means an Assured Shorthold Tenancy under Section 19a of the Housing Act 1988 (as amended by the Housing Act 1996, or any subsequent amendments thereto) (or such other tenancy as shall be agreed in writing between the landlord and the agent) and granted over the property and made between the owner on one part and a tenant introduced by the agent on the other part.
1.6 “The Property”: means the address of the property to be let as written on the landlords contract.
1.7 Where the word “landlord” is used this reference shall include all of the signatories to this agreement and you all agree that your liability under this agreement shall be on a joint and several basis.
1.8 “DPS” Deposit Protection Service. A government authorised custodial scheme set up to act as a third party mediation service. All money lodged with the DPS is held in accordance with the client money regulations.
As remuneration for the services provided, the agent shall be entitled to retain out of monies payable under the tenancy, the payments due for the services rendered and agreed by the landlord in writing prior to the commencement of the term. All payments due to the agent for the services rendered shall, unless otherwise stated, be exclusive of VAT. If insufficient fees are received to invoice the landlord for the balance due.
In the event of the landlord wishing to terminate the agreement, at least one months written notice must be provided and the landlord shall become immediately liable for any amount due up to the expiry date of the written notice. In the event that the landlord wishes to terminate the agreement during an existing tenancy, the landlord shall be liable to pay an administration fee to the agent, equivalent to two weeks rent plus VAT for each tenant who has signed the existing tenancy agreement.
3.1 The agreement can be terminated by the agent at any time by giving one months written notice or with immediate written notice if the landlord is in breach of any terms of the agreement or the tenancy.
4.1 The agent shall not be liable to any landlord for any act or omission or negligence on their part not amounting to wilful default.
4.2 The agent is not liable for any loss, damage, costs, expenses or injury to persons or properties connected to their letting and management services.
4.3 The agent is not responsible for any unilateral actions or decision made by its landlords or tenants.
4.4 The agent is not responsible for landlords or tenants debts and/or liabilities. If in the opinion of the agent it is considered necessary to instruct a solicitor, surveyor or other professional advisor on the landlords behalf, the landlord will be responsible for the payment of the account relating to such instructions. The agent will not instruct the above mentioned persons without having made reasonable effort to contact the landlord.
4.5 The agent accepts no responsibility for work carried out by contractors that the agent or landlord appoints.
The agent confirms that funds held on behalf of the landlord are held in a designated “Client” account. The agent also confirms that a credit balance attracts interest and that interest will be retained by the agent.
The agent confirms that from time to time commission may be received from a third party for services arranged by the agent for the landlord. Any such commission will be retained by the agent in full.
7.1 At all times during the term the landlord will employ the agent as sole agent for the letting and (where appropriate) management of the property for a period of (period agreed at time of signing contract) from the date of signing, on the terms and conditions contained herein.
7.2 The agent has authority (where appropriate) to collect rent on behalf of the landlord.
7.3 Its is agreed that the agent may sign all Tenancy Agreements and Housing Act/Rent Notices on the landlords behalf unless specific instructions to the contrary are given in writing by the landlord. Furthermore the landlord agrees to indemnify the agent against any loss or claim or damage resulting from their signature or execution of any agreement on behalf of the landlord.
7.4 If the property is subject to a mortgage the mortgages consent to the proposed letting has been obtained in writing by the landlord prior to the commencement of the term.
7.5 Under a “Let Only” service the agent will receive a bond deposit from the tenant as agent for the landlord and will pay or deemed to have paid the full sum of the bond deposit to the landlord following completion of the tenancy agreement. The landlord will be liable to deposit all bond money received in compliance with the client money regulations. The landlord also agrees to account directly to the tenant for the full sum of the bond deposit less any deductions applicable pursuant to the terms of the tenancy, at the end of the tenancy.
7.6 Under a “Full Management” service, the agent will receive the bond deposit and lodge the bond deposit with the DPS (Deposit Protection Service) for the duration of the tenancy. If required by the landlord, the agent will arrange an inventory check out upon expiration of the tenancy and report any claims in respect of dilapidation’s, arrears of rent or other monies due in so far as payment can be deducted from the bond deposit via the DPS.
7.7 Under the landlord and Tenant Act 1987 the agent is obliged to include the landlord’s name on the tenancy agreement.
7.8 If the property is subject to lease the landlord will disclose to the agent any onerous or special terms of the lease (if appropriate).
7.9 The landlord will supply the agent with two sets of keys for the property, otherwise keys may be cut and charged to the landlords account.
7.10 The landlord will ensure that all previous occupants mail is redirected from the property.
7.11 Under the terms of the landlord and tenant Act 1985, the landlord will be responsible to look after the structure of the property, any central heating and hot water systems and all other service supplies. The landlord further acknowledges that it is an obligation which belongs and which is not passed on to the tenant or the agent.
7.12 The landlord guarantees that the property along with its services, fixtures, fittings, and household contents (if any) will comply with the following regulations:-
Current local HMO Regulations; Furniture and Furnishings (Fire Safety) Regulations 1988; Gas Safety (Installation and use) Regulations 1998; Electrical Equipment (Safety) Regulations 1994 and any subsequent amendments prior to the commencement of the term. If appropriate, Safety Certificates are obtained and exhibited to the agent prior to the tenancy. This is a pre-condition and/or fundamental of this agreement breach of which will render the agreement null and void. The agent (at the landlords expense) shall ensure that appropriate safety certificates are received for subsequent years.
7.13 The landlord agrees to fit a smoke alarm on each floor of the property to be let and the said smoke alarm should confirm to BS5446 Part 1 or any subsequent amendment thereto.
7.14 The landlord will at the start of the tenancy leave the property in a clean and tidy condition to meet the reasonable standards for letting. The agent reserves the right to clean the property and charge the landlord the costs incurred.
7.15 The landlord will effect and continue throughout the term of the tenancy both buildings insurance and where appropriate, contents insurance. The landlord will also inform the insurer of the intention to let the property prior to the commencement of the term. Failure to do so could invalidate any future claim.
7.16 If the landlord is to reside outside of the United Kingdom during the term, the agent is obliged to deduct tax (at the basic tax rate) to cover any tax liability, unless the agent has been authorized by the Inland Revenue to pay rent gross. If this is the situation, then prior to the letting being agreed the landlord will be responsible for applying to the Inland Revenue to receive gross rental income with no tax deducted.
7.17 The landlord will indemnify the agent for any loss incurred as a result of any act, omission or representation made by the landlord.
7.18 The landlord agrees that the agent may revise payments due as recommended for the services provided subject to the agent giving a minimum of one calendar month written notice.
7.19 The landlord agrees that the agent is not responsible for the cost of works required to meet current HMO Regulations (and any subsequent future amendments to the HMO Regulations).
7.20 The landlord agrees to indemnify the agent against any claims made against the landlord or the agent due to the subsequent lack of HMO Regulations (and any subsequent amendments to the HMO Regulations) at any property being let by the agent on behalf of the landlord.
7.21 The landlord agrees to authorise the agent to carry out routine maintenance up to the value of £150.00 . Any work required over and above £150.00 is the responsibility of the landlord, unless a prior written agreement is made between the landlord and the agent.
7.22 Should an occasion arise where the landlord decides to revert from a fully managed service to a let only service during the term of a tenancy, the landlord agrees to pay the agent the equivalent of one weeks rent per tenant with immediate effect.
8.1 At all times during the term (subject to Clause 4 of this agreement) the agent will let (and manage if appropriate) the property in proper and businesslike manner.
8.2 The agent will endeavour to obtain tenants for the property for such period of time as the landlord shall require and whilst checks can be made, the agent cannot guarantee the credit worthiness or good character of the tenant.
8.3 To prepare and complete the tenancy documentation and any appropriate notices which may require serving under the Rent Act 1977 and/or the Housing Act 1988 or any subsequent amendments thereto.
8.4 To use reasonable endeavour to collect on behalf of the landlord any monies from time to time due from the tenants to the landlord under the terms of the tenancy.
8.5 Upon signing the tenancy agreement, the agent will take, for security, a bond deposit. If the tenancy is “Fully Managed” the bond deposit will be held by the DPS in accordance with the client money regulations until the end of the tenancy.
8.6 To pay and discharge the following liabilities of the landlord in respect of the property from the payments collected under the tenancy but only as far as the agent is able to do so out of the collected payments:-
8.6.1 Sums due by way of premium or otherwise in respect of any legal or rental cost protection insurance which the client has instigated through the agents.
8.6.2 The payments which the landlord agrees are due to the agent under this agreement.
8.6.3 Any sums which the agent considers necessary to expend in respect of the property up to the pre-agreed limit. In the event of the expenditure being greater than pre-agreed limit the agent will obtain the landlords permission (written or verbally) except in emergencies.
8.6.4 If appropriate to the services required by the landlord to carry out all minor and emergency repairs to the property which the agent shall reasonably consider necessary, such repairs to be carried out by contractors of good standing provided always that the agent shall not be under any liability to carry out any such repairs but shall notify the client as quickly as practically possible after the same has come to the attention of the agent.
8.7 To account to the landlord at monthly intervals for the balance of all monies which are for the time being due to the landlord and for which the agent has cleared funds.
8.8 To notify the landlord of any substantial breach of the tenancy relating to the tenants use or occupation of the property.
8.9 At the end of the tenancy to serve the tenants with notice of termination in accordance with the statutory requirements.
8.10 Depending on the service chosen by the landlord, to arrange the preparation of an inventory of the contents and condition thereof and to arrange an inspection of the property after the tenants have vacated to ensure that the contents remaining at the property are in accordance with the said inventory.
8.11 The agent will not liable for any errors or omissions caused by an inventory company, should the agent appoint such a company on behalf of the landlord.
9. For the avoidance of doubt it shall be part of the agents duty to carry out or undertake other than those matters referred to in Clause 8 above and (without prejudice to the generality of the foregoing) the agent shall not be liable:-
9.1 For any delay in obtaining tenants for the property or for any loss, damage or inconvenience caused to the landlord by the property being unoccupied or unlet from time to time.
9.2 For any accident, damage or inconvenience that the client or others may suffer through the acts of defaults or negligence of the tenants, or any occupier or anyone else.
9.3 For any act or default of the tenants and particularly for any damages or destruction caused by the tenants to the property or anyone else.
9.4 To cause to be instituted on behalf of the client any legal proceedings against any person whether in respect of obtaining possession of the property or recovery of outstanding payments or for any other purpose whatsoever UNLESS such proceedings have been specifically authorised by the landlord and only then at the agents sole and absolute discretion. The landlord is responsible for payment of all legal fees and any related costs.
10. In the event of one or more of the above conditions being invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining conditions shall not in any way be affected.
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Mike M (Landlord)