Landlords Guide, Terms & Conditions
1. Initial Visit
We will visit the Premises and provide you with an indication of the likely market rent achievable.
2. Prior to Letting
You must ensure that the Premises are fit to be let. Appliances should comply with the safety regulations detailed later in the General Terms and Conditions of this Agreement. All machines, gas appliances and electrical goods should be in full working order, should have been recently serviced, checked for safety and have clear instructions for use. Properties should be thoroughly cleaned including windows and gardens, if applicable, should be in good seasonal condition, details of which should be shown on the check-in report of the Inventory and Schedule of Condition.
3. Marketing
We will market your Premises and inform suitable applicants of the availability of your Premises by erecting a To Let board at the Premises and by advertising in appropriate publications and on the major online property portals. Please notify us in writing if you have previously agreed not to erect a To Let board with the Freeholder or other interested parties, or if local bye-laws or conservation area restrictions prevent the erection of a board.
4. Viewings
As and when we have applicants interested in viewing your Premises we will accompany these people to your Premises with keys provided by you. Should the Premises be occupied by yourselves or Tenants, we will arrange a mutually agreed time to complete the viewing.
5. Negotiating Offers
When an applicant shows interest in the Premises we will record the terms of the offer and negotiate between the two parties including any special conditions.
6. References
Once an offer has been agreed for the Premises, we will take up references through a credit referencing company upon each applicant whenever possible. If the credit referencing company finds these references acceptable, or those of a guarantor (if required), we will forward their report to you together with the final draft of the tenancy agreement, for your final written authority to proceed to enter into and sign the tenancy agreement on your behalf. When we proceed we will be doing so without any responsibility for the accuracy of those references or the information contained in them. We will not be warranting the Tenant as suitable. If the prospective Tenant or guarantor (where applicable) does not qualify for the credit referencing company and we have your written consent to proceed without additional references, we cannot accept any liability for any loss suffered. As part of the referencing process we are required to supply the referencing company with the contact details of our landlord client. If this is not acceptable, please confirm this to us in writing.
Reference & Credit check fees are £15.60 INCLUDING VAT per Tenant/Guarantor.
7. Inventory
Inventory compilation: an Inventory and Schedule of Condition is essential for the proper management of your Premises, whether they are let furnished or unfurnished, in order to reduce the risk of a dispute arising in respect of the Security Deposit (“Deposit”). Cedar Estates strongly recommends that this is made by a professional independent inventory company. It is made at the start of the Tenancy so that at the end of the Tenancy the check out of the Inventory can identify missing items, breakages and damages likely to be covered from the Tenant’s Deposit. You will be responsible for payment of the fee for the Inventory ‘check out’.
Inventory ‘check in’: the Tenant ‘check in’, carried out by the inventory clerk, includes checking the full Inventory (and updating where necessary) in the presence of the Tenant. The Landlord is responsible for the cost of the ‘check in’.
Check in fees INCLUDING VAT are : Studio £180, 1 bed £192, 2 bed £216, 3 bed £240, 4 bed £264, 5 bed £288, 6 bed £324
Inventory ‘check out’: A check out Inventory and Schedule of Damage will be carried out at the end of the Tenancy by the inventory clerk. Our Tenancy Agreement makes it clear that the Landlord will pay for the cost of this. You should note that our Let Only service does not include arranging the Inventory check out, nor preparing or negotiating a schedule of dilapidations. We advise that the Landlord does not enter the property until after the Inventory check out has been completed as this may invalidate any claim the Landlord may have over dilapidations caused by the Tenant.
If we are providing a Let Only service we can, at your written request, arrange for an independent inventory company to contact the Tenant and arrange for a check out to be completed. Should you request this, we will require you to put us in funds in order to cover the cost of the check out. We cannot accept any liability for errors or omissions on the part of the inventory company.
Check out fees INCLUDING VAT are : Studio £120, 1 bed £132, 2 bed £144, 3 bed £156, 4 bed £192, 5 bed £204, 6 bed £228
8. Tenancy Agreement
You will need a comprehensive Tenancy Agreement setting out the rights and obligations of both parties. Where the Tenant is an individual you will also need to take into account the Unfair Terms in Consumer Contract Regulations 1999 and the guidelines prepared by the Office of Fair Trading which states that any clause in a contract which is unfair to the Tenant could be deemed unfair and therefore unenforceable. We will provide you with a comprehensive Tenancy Agreement. There will be a separate charge of £120 INCLUDING VAT for completing and drafting the Tenancy Agreement.
Assured Shorthold Tenancy: if the applicant is an individual and the net rent is £100,000 or less per year we will use an Assured Shorthold Tenancy Agreement. There is no longer a minimum period for such lettings but depending upon the length of the Tenancy, the Tenant will have security for a minimum of six months provided the Tenant is not in breach. However, if the Tenant fails to surrender possession at the expiry of the term (and in accordance with your valid Notice), you will need a Possession Order. No such Order can expire within the first 6 months of a Tenancy commencing unless the Tenant is in breach of the Tenancy. Unless advised by you in writing to the contrary we shall use our standard Assured Shorthold Tenancy Agreement for an initial fixed period of 12 months. There may be certain amendments to the special clauses of our Tenancy Agreement. For example, pets may/may not be allowed or that the Tenant has requested a break clause to be included, etc. When we receive an offer for your Premises we shall advise you in writing of the basic terms and any special conditions. Once we have received acceptable references we shall send you a final draft of the Tenancy Agreement and at this time we will require your final written confirmation to proceed and enter into and sign the Tenancy Agreement on your behalf.
Common Law: if the net rent payable is more than £100,000 per year or at a proportionate level for a shorter tenancy, the Tenancy Agreement cannot be an Assured Shorthold Tenancy. You will need to use a Common Law Agreement. Although this is not governed by the Housing Act 1988 it is nevertheless subject to other statutory regulations which means you must obtain a Possession Order from the County Court before a Tenant can be evicted. Unless advised by you in writing to the contrary we shall prepare the relevant documentation based on an initial fixed period of 12 months. The Tenancy Agreement may include a Landlord and Tenant break clause as noted above. The Tenancy Agreement will then be sent to you for your written approval to proceed.
“Company” Lets: this is a Tenancy outside the protection of the Housing Act 1988 and is subject to common law. These involve more pre-contractual negotiations. There are no rent restrictions. The Tenant may request an option to renew within the Tenancy Agreement which, if granted, means that provided the Tenant is not in breach then the Tenant will have the legal right to renew the Tenancy. You will not be able to serve notice. Unless advised by you in writing to the contrary we shall prepare the relevant documentation based on an initial fixed period of 12 months. The Tenancy Agreement may include a Landlord and Tenant break clause but the periods are subject to negotiation. The Tenancy Agreement will then be sent to you for your written approval to proceed.
General: Tenancy Agreements can be for a fixed duration, run from month to month (ie. a Periodic Tenancy), or be a combination of the two. A fixed term contract will give you more certainty, whilst the Periodic Tenancy will give more flexibility. Our Tenancy Agreements require the Tenant to take sensible precautions to protect the Premises against frost damage and when the Premises are vacant. If your insurer has specified requirements regarding your Premises, especially during a vacant period, you must give them to us or a copy of the relevant sections of the insurance policy so that they can be incorporated as part of the contract with the Tenant prior to the commencement of the Tenancy. A Tenant cannot be held liable for any loss suffered if he is not made aware of these restrictions.
9. Utilities and Council Tax (Full Management Service only)
We will notify electricity, gas, water suppliers and the local authority when the Tenant occupies your Premises, provided you have supplied us with the contact details of your utility suppliers including the account numbers. We will ask them to send a credit agreement and supply contract to the Tenant. You will need to pay any outstanding utility charges up to and including the date upon which the Tenant occupies the Premises and for any void period between tenancies. We will also need to provide the above suppliers with your new address and the meter readings at the commencement of the Tenancy to ensure that there are no discrepancies with the changeover. Some suppliers will not take instructions from us in which case you may be required to contact them direct to take the accounts out of your name(s).
10. Advantages of Rent Collection and Full Management
Many landlords opt for a Letting Only service thinking that they can control the day to day matters at a property. The advantage of using the Rent Collection Service offered by Cedar Estates is that our accounting system quickly spots if a rent payment is late or missing and generates debt collection letter/s to the Tenant. Thus action is taken promptly to minimise any delay in starting court proceedings if a Tenant defaults. Full Management effectively forms a barrier between the Landlord and the Tenant, taking away any hassle for the Landlord and ensuring repairs and maintenance are carried out promptly by qualified tradesmen to prevent any complaints from a Tenant or threats of withholding rent if there is any delay in remedying lack of repair. Our management team visit the Premises to ensure that we are aware of the condition of the Premises which enables us to remedy defects promptly to minimise expense.
11. Rent Collection (Full Management and Rent Collection Service only)
We will use our reasonable efforts to arrange for a standing order to be set up so that the Tenant can send future rent payments direct to us. Monthly statements of account will be sent to you by email within 7 working days after receipt of cleared funds, less our agreed fees and expenses, into your nominated bank or building society account. You should arrange a facility with your bank to ensure that all regular commitments are paid allowing for different rent payment dates, void periods or the failure of the Tenant to pay the rent. We cannot be held responsible if the Tenant fails to pay the contractual rent. We will however take action in your name to recover rent arrears by serving the appropriate letter within 7 days of the rent due date requesting payment to their home address. If this does not have the desired effect we will advise you to instruct specialist solicitors to take further action (see the General Terms and Conditions). You will be responsible for the legal charges and expenses. In some cases we will have taken a rent-guarantee insurance policy out for non-payment of rent by your Tenant(s). In this instance, we will assist with the administration in opening and handling such a claim.
12. Renewal of Tenancy (Full Management and Rent Collection Service only)
Towards the end of the initial fixed term we will contact both Landlord and Tenant to find out if either party wishes to renew the Tenancy Agreement.
We will review the rent and advise you if a rent increase is possible depending upon market conditions. You must confirm to us in writing if you wish the Tenancy to be renewed or notice served. Once written confirmation has been received from you requesting the Tenancy to be renewed we will write to the Tenant asking if they wish to renew the Tenancy and advising of any proposed rent increase. We will then negotiate between the two parties if requested. We will prepare the extension document for both parties where requested, including drafting any clauses agreed between the parties varying the terms of the original Tenancy. The extension documents will be sent to both parties for signature. We will try to ensure both parties sign the documentation by the start date of the new period of the Tenancy. However if the Tenant fails to return the extension documents and remains in occupation of the Property, the Tenancy will continue as a Periodic Tenancy until either party gives notice in writing. Our commission will be payable whether the Tenancy continues as a fixed term or a Periodic Tenancy. While we will make every effort to obtain the signed extension documents we have no liability if the Tenant fails to return them. Once the signed documents are received we will date them to complete the contract and send the documents received to the relevant party. You will receive the copy signed by the Tenant and the Tenant receives the copy signed by you. If the Tenant has an Assured Shorthold Tenancy and continues to roll-on on a month to month basis (ie. a Statutory Periodic Tenancy) then the rent can only be lawfully increased on an annual basis if we serve the Tenant with a valid Notice under Section 13(2) of the Housing Act 1988. This Notice advises the Tenant that they have a right to challenge the increase by serving you with a Counter Notice and ultimately referring the increase to the Rent Assessment Committee. If you want us to serve a Section 13 Notice on your behalf you must inform us in writing. Our administration fee for service of this notice is £60.00 INCLUDING VAT. This could result in a hearing. If the Tenant makes a counter proposal we will ask you whether you wish to accept it or whether you wish to pursue the issue to a hearing. If you opt for the latter we can arrange for solicitors to act on your behalf. You will be responsible for their charges. If we initially provided a `Letting Only` service, we can prepare the renewal documentation upon request subject to a charge of £120.00 INCLUDING VAT for a replacement Tenancy Agreement or for a Memorandum of Renewal or Addendum.
13. Maintenance of the Premises (Full Management Service only)
Sections 11 to 16 of the Landlord and Tenant Act 1985 state that you must:
a) keep the structure (including the drains, gutters and down pipes) and the exterior of the Premises in good order and repair);
b) keep the appliances for supply of gas, electricity and water in good repair;
c) keep the appliances for supply of space heating and water heating in repair; and
d) keep the sanitary appliances in repair; and
e) carry out all repairs within a reasonable time of being notified.
By signing and returning this Agreement you give us authority to organise and where necessary supervise minor repairs and routine works to comply with the above, up to a value of £300 INCLUDING VAT. If repairs or replacements are likely to exceed £300 INCLUDING VAT we will, except in emergencies, try to contact you to obtain your specific written authority to incur that expense. If we do not receive contrary instructions from you in writing within 2 days we will proceed with your full authority to act as we deem appropriate having regard to your contractual and statutory obligations. Should you wish to be notified of any minor maintenance works (under the value of £300 INCLUDING VAT), please notify us in writing prior to the start of the Tenancy. We will endeavour to select competent tradesmen at a reasonable price but we are unable to guarantee the standard of workmanship or any liability arising thereof, although the Landlord reserves the right to pursue any claim against appointed tradesmen for substandard work. If the Landlord instructs us to use a preferential contractor we will only use the tradesman if the Landlord previously supplies us with a copy of the professional qualification and public liability insurance of the contractor and the person is readily available. We reserve the right to levy a supervision charge of 10% on to the cost of any refurbishment/building works exceeding £1,000 INCLUDING VAT or when we are required to meet other people at the property (eg. loss adjusters, surveyors, etc). For example, where works cost £1000 including VAT, our fee will be £120 including VAT. We cannot arrange for any works without first holding cleared funds sufficient to meet the liability. We will retain a float of £300 at all times whilst managing the property. We have no liability for any loss or damage suffered if we do not hold funds and are unable to arrange any necessary work unless the loss or damage is due to our negligence or breach of contract.
14. Monitoring Contractors
We have introduced an additional in-house procedure whereby various contractors’ maintenance or other works are periodically checked by one of our members of staff. These inspections will be based on what can be easily accessed and obviously seen and are neither an inventory check nor survey. We cannot accept responsibility for hidden or latent defects. This new monitoring service is being introduced to further enhance the supervision of our contractors. We believe that this will result in a speedier and more satisfactory conclusion to maintenance matters which, hopefully, will also be appreciated by your Tenant. Generally speaking, a happy Tenant is more likely to stay in a property if they feel it is being looked after and properly managed. This does minimise void periods and the associated loss of rental income. We reserve the right to impose, at our discretion, a supervision charge on a contractor to cover our mileage and/or administration costs.
15. Payment of Outgoings (Full Management Service only)
We can, if instructed in writing, discharge other liabilities from rental income provided we are holding sufficient funds, eg. pay your ground rent and service charge(s) when you have a leasehold interest in the Premises. It is your responsibility to instruct these service providers to contact ourselves direct. We cannot act on your behalf in connection with any dispute arising from these payments and accept no responsibility if there is a dispute unless it is due to our negligence or breach of contract. We have no liability for any loss suffered if we do not hold funds and are unable to pay any accounts on your behalf unless the loss or damage is due to our negligence or breach of contract.
16. Premises Visits (Full Management Service only)
During the normal course of our day to day management of your Premises, we will carry out two visits to your Premises within a one year period. If you require more frequent visits you must notify us in writing as and when you wish these to be carried out during the course of the Tenancy. Additional visits will incur a charge of £60.00 INCLUDING VAT per visit. If, in our opinion, the occupants are not taking proper care of the Premises we will inform you and them. Any visits are of limited scope, are of a generally superficial nature and are neither an inventory check nor survey. We cannot accept responsibility for hidden or latent defects.
17. Service of Notices (Full Management and Rent Collection service only)
Unless the Tenant voluntarily surrenders possession of the Premises it will be necessary to serve the Tenant with a valid notice. The precise form of notice, length of notice and expiry date depends upon what type of Tenancy has been granted. We recommend that you seek our advice before serving notice. If you wish us to serve notice(s), we charge £30.00 INCLUDING VAT for this service. We cannot be held responsible for any delay in regaining possession if you fail to give us sufficient written notice of your instruction to serve the Tenant with the required notice. From time to time we may recommend that you instruct solicitors to serve the notice for you.
18. Vacant Periods (Full Management Service only)
Our Management Service does not include supervision of your Premises when it is vacant (eg. waiting to be let), although our lettings staff may visit the Premises to show applicants around. Upon receipt of your written instructions we can arrange for scheduled visits (“Caretaking Service”). A visit will be once a week during office hours being Monday to Friday between 9am and 5pm. Any visit can only pinpoint obvious visual defects and will not be an expert investigation or structural survey of the Premises. We will inform you of any defect or lack of repair that comes to our notice but we do not arrange repairs on your behalf unless instructed in writing and we are in receipt of sufficient cleared funds. We cannot accept responsibility for hidden or latent defects. Our fees for this service are 6% INCLUDING VAT of the rent that the property was previously let for, or 6% INCLUDING VAT of what we believe the reasonable market rent should be (if the property hasn’t previously been let by ourselves).
19. Waiting at Properties (Full Management Service only)
We will try to arrange a mutually convenient time for contractors attending the Premises to meet the Tenant at the Premises when undertaking work on your behalf. Keys may be released to contractors but only with the Tenant’s authority. Where this is not possible we may be able to arrange to meet the contractor at the Premises. We will charge waiting time at the Premises at the rate of £54.00 INCLUDING VAT per hour. We do not meet contractors if we do not manage the Premises.
20. Termination and Assignment of Management
Either party has the right to terminate this Agreement in writing:
· upon the Tenant’s vacation;
· if the other party breaks any important term or condition of this Agreement during a Tenancy
After an initial period of 12 months of a Tenancy Agreement commencing, either party may withdraw instructions to manage the Premises upon giving 3 months’ written notice to the other party. We may terminate our retainer immediately if you are in breach of any of the terms contained in this Agreement or if you are in breach of statute or you do or do not do something which makes it impossible, impracticable or illegal to continue providing these services. Should either party withdraw instructions and the Premises are handed over to you with the Tenant still in residence our charges will continue to be payable until the Tenant vacates. We reserve the right to assign our rights and/or obligations under this Agreement upon giving you 1 month’s written notice.
21. Termination and Assignment of Rent Collection Service
Either party has the right to terminate this Agreement in writing:
· upon the Tenant’s vacation;
· if the other party breaks any important term or condition of this Agreement during a Tenancy
Either party may withdraw the instructions to collect rent on the Premises (Rent Collection Service) upon giving 3 months’ written notice. We may terminate our retainer immediately if you are in major breach of any of the terms contained in this Agreement or if you do or do not do something which makes it impossible, impracticable or illegal to continue providing these services. Should either party withdraw instructions and the Premises are handed over to you with the Tenant still in residence our charges for Letting and/or Renewal will continue to be payable until the Tenant vacates. We reserve the right to assign our rights and/or obligations under this Agreement upon giving you 1 month’s written notice.
Should you sell or assign your interest in the property, and whilst the Tenant is still in occupation of the property, you will remain liable for our full fees. We recommend that these Terms and Conditions form part of your sales contract should you wish to recover any fees due to from your purchaser or assignee. For the avoidance of doubt, it is your responsibility to pay our fees.
22. Professional Cleaning
We very strongly recommend that a professional clean is carried out prior to the commencement of the Tenancy. The cost for this is available upon request. By investing once in a proper professional clean prior to the commencement of a Letting, the Tenant is then responsible to return the property in the same state of clenliness at the end of the Tenancy, either direct or by a deduction from their Deposit. From experience, we have found that everyone’s interpretation of a proper clean is different. For clarity purposes, we note our guide which we try to encourage our contractors to follow whenever possible.
‘Domestic’ clean
| Kitchen: | Work Surfaces – wipe and clean; Cupboards – wipe; Fridge/Freezer – wipe (if defrosted); Sink and Taps – clean; Washing Machine – clean dispenser/seal |
| Bathroom: | Bath – wipe; Toilet – disinfect; Shower – wipe |
| Other Rooms: | Carpet – vacuum and dust skirting; remove cobwebs; Windows – wipe sills |
Light ‘Professional’ clean
| Kitchen: | Work Surfaces – wipe, clean and antibacterial; Cupboards – wipe and clean; Fridge/Freezer – defrost, wipe and clean; Dishwasher – clean; Tiles – wipe; Sink and Taps – clean and limescale; Washing Machine – clean dispenser/seal; Oven – hob clean and filters |
| Bathroom: | Bath – wipe, clean plughole and remove limescale; Toilet – limescale; Shower – wipe, clean and plughole; Extractor Fan – remove dust build up; Accessories/Fittings – clean and shine |
| Other Rooms: | Carpet – vacuum and dust skirting, remove cobwebs; Doors – clean and wipe; Windows – wipe sills, remove mould, clean glass; Accessories – dust |
Deep ‘Professional’ clean
| Kitchen: | Work Surfaces – wipe, clean and antibacterial; Cupboards – wipe, clean, degrease and polish; Fridge/Freezer – defrost, wipe and clean; Dishwasher – clean and descale; Tiles – wipe and degrease; Sink and Taps – clean and limescale; Washing Machine – clean dispenser/seal; Oven – hob clean and filters |
| Bathroom: | Bath – wipe, clean plughole and remove limescale; Toilet – limescale and bowl freshener; Shower – wipe, clean, plughole and descale; Extractor Fan – remove dust build up; Accessories/Fittings – clean and shine, fresh fragrance |
| Other Rooms: | Carpet – vacuum, dust and clean skirting, remove cobwebs; Doors – clean, wipe and polish handles; Windows – wipe sills, remove mould, clean glass and UPVC surround; Accessories – dust, clean and shine |
| Additional Costs: | carpet cleaning, oven clean, furniture cleaning, wooden/metal blinds dust |
GENERAL TERMS and CONDITIONS
A. Commissions
Letting Only Service: 12% INCLUDING VAT of the gross rent payable for the duration of a Tenancy, such fee payable in advance on receipt of the first instalment of rent plus £120.00 INCLUDING VAT administration fee for the preparation of the Tenancy Agreement. This is payable by the Landlord to us following the introduction of a Tenant who enters into a Tenancy either directly, indirectly or by way of an introduction from an existing Tenant found by us.
Renewal fee: 12% INCLUDING VAT of the Gross Rent payable for the duration of the Tenancy in the event of a property being re-let or continuing to be let to an existing Tenant or any new Tenancy granted to the same Tenant or any person nominated or introduced by the original Tenant for a second year, such fee payable in advance on receipt of the first instalment of rent plus £120.00 INCLUDING VAT administration fee for the preparation of the Memorandum of Agreement or Tenancy Agreement.
Management Fee: 6% INCLUDING VAT of all rents received. This service includes rent collection.
Our fees for Management of a vacant property (“Caretaking Service”) are 6% INCLUDING VAT of the rent that the property was previously let for, or 6% INCLUDING VAT of what we believe the reasonable market rent should be (if the property hasn’t previously been let by ourselves).
In the event of early termination of a Tenancy by a Tenant (but not otherwise), Cedar Estates shall refund the pro rata amount of letting/renewal fee plus VAT (based on the date of termination to the expiry date of the Tenancy Agreement).
Any fees owed to Cedar Estates are to be payable within 14 days of when they become due. Should any fees remain outstanding, Cedar Estates will charge Interest at 3% above the Bank Of England base rate from the date the fees became due until the fees have been paid in full calculated on a day to day basis from the day upon which they became due down to the date of payment.
B. Additional Fees
To hold the Deposit on behalf of the Landlord and register the Deposit with an approved Tenancy Deposit Protection Scheme within 14 days of the commencement of the Tenancy – arrangement fee of £36 INCLUDING VAT.
C. Early Departure of Tenant
Where we are providing a Letting Only service, and should the Tenant leave the Premises of their own accord prior to the expiration of the Tenancy it is your responsibility to take the appropriate action to recover any outstanding rent from the former Tenant.
D. Duplicate Statements
Duplicate statements of account can be supplied upon request.
E. Consent for Letting
By signing these Terms and Conditions you warrant to us that:
| i. | You are the owner of the Premises, or otherwise lawfully entitled to enter into the Tenancy Agreement. |
| ii. | You have mortgagee’s consent to the proposed letting (where applicable). |
| iii. | If you are a leaseholder, you have Superior Landlord’s consent to the letting (where applicable). |
F. Mortgages
Where the Premises are subject to a mortgage, the mortgagee may wish to see a copy of the draft Tenancy Agreement which can be supplied upon their written request. The mortgagee may charge you a fee for giving their permission. If you wish us to try to obtain your mortgagee’s written consent there will be an additional charge of £60.00 INCLUDING VAT in addition to the fees due to the mortgagee. If your mortgagee has any special conditions relating to the Tenancy or type of Tenant you must provide them to us prior to commencement of the marketing of the property. Conditions cannot be imposed upon a Tenant at a later date.
G. Sub-Letting
If you are yourself a leaseholder you may require the consent from your Superior Landlord, Freeholder or their Managing Agent before you can sub-let the Premises to a prospective Tenant. In giving consent the Superior Landlord or their Managing Agent may require you to provide references for your Tenant and for you and your Tenant to enter into an Agreement to observe the covenants contained in your Head Lease. A fee may be charged for granting consent to sub-let, which is your liability. We will need a copy of the Head Lease together with any schedules referred to therein so that we can attach a copy of this to our draft Tenancy Agreement. If the Tenant is not given a copy of the relevant section of the Head Lease you cannot impose any obligations contained in it upon the Tenant. This could lead you to breach the terms of your lease.
If you wish us to try to obtain your Freeholder’s or Superior Landlord’s written consent there will be an additional charge of £60.00 INCLUDING VAT in addition to the fees due to the Freeholder or their Managing Agent.
H. Insurance
It is essential that the Premises and contents included in the Inventory and Schedule of Condition are adequately insured and that your insurers are aware that the Premises are let. Failure to do so may invalidate your insurance. You must inform your insurers whenever the Premises remain vacant for a period greater than specified in your insurance policy. You should also check that your insurance policies include third party liability to protect you if the Tenant or a visitor to the Premises sues for personal injury. You must give us copies of the relevant sections of the policies to attach to the Tenancy Agreement at the start of the Tenancy otherwise the Tenant need not comply with any special conditions including those relating to vacant premises. We cannot arrange for the renewal of your insurance cover or make claims to your insurer on your behalf although if we manage the Premises we will provide you with the full details of any event that could lead to a claim. We strongly recommend you arrange for an insurance policy which covers loss of rent and contents and legal expenses. It is our normal policy to strongly recommend to every Tenant to take out a Tenant’s contents insurance policy. Our Tenancy Agreement provides for this cover to be maintained throughout the Tenancy.
Cedar Estates is strictly not permitted to arrange or provide you with any advice regarding general insurance products. Cedar Estates is able to recommend an insurance broker to you who will be able to advise you regarding insurance.
I. Taxation
You will be liable for tax on rental income in the UK. You must inform the Inland Revenue that you are letting the Premises – (Taxes Management Act 1970). There are a number of allowances that you can claim against this rental income. You should seek advice on these allowances from your accountant or from the Inland Revenue. You must also keep all your invoices for six years for tax purposes. You should be aware that we forward a form to the Inland Revenue annually detailing all Landlords whose property we have let together with the income from the Premises regardless of the country of residence of that Landlord. The Inland Revenue has special rules regarding the collection of tax on rental income if you are a Landlord who is resides overseas. If you fall into this category it is your responsibility to obtain a tax approval number from the Inland Revenue. The relevant form and guidance notes can be downloaded from the HMRC website. Until an approval number is given to us by the Inland Revenue we are legally obliged to deduct tax from your rental income at the prevailing rate which is currently 20%. This money is forwarded to the Inland Revenue on a quarterly basis. If you are not accepted into the Non Resident Landlord Scheme and we deduct tax from your lettings income we shall make an administration charge of £60.00 INCLUDING VAT per quarter for preparing the quarterly return, your certificate of tax deducted and forwarding monies to the Inland Revenue. If the Tenant pays you direct and he has not received approval from the Inland Revenue to pay the rent gross, he must deduct tax and forward that to the Inland Revenue on your behalf. No person is exempt from this scheme. Cedar Estates can prepare an annual summary of income and expenditure for Landlords if requested in writing. This summary will incur our administration charge of £30.00 INCLUDING VAT
J. Furniture & Furnishings (Fire Safety) Regulations 1988 AND The Furniture & Furnishings (Fire Safety) (Amendment) Regulations 1993
It is a criminal offence, punishable by a fine of up to £5,000 and/or a prison term, to let Premises with furniture or soft furnishings which cannot be proven to comply with the above fire safety regulations. By signing this Agreement you give us authority to remove any item that we believe does not have a fire label attached to it and agree to pay any costs that we may incur in connection with this. The Regulations apply to the following which must be match resistant, cigarette resistant and carry a permanent label: all upholstered furniture; three piece suites; beds and divans including the upholstered bases; padded headboards; sofa beds; furniture with loose or fitted covers; children’s furniture; cots and other items used by a baby or small child; cushions; highchairs; mattresses of any size; pillows; garden furniture which may be used indoors.
K. Electrical Equipment (Safety) Regulations 1994
If you let property you must ensure that the electrical system and all appliances supplied are safe. Failure to comply with the regulations is a criminal offence and may result in: a fine of £5,000 per item not complying; 6 months’ imprisonment; possible manslaughter charges in the event of death, or the Tenant may also sue you for civil damages. Your property insurance may be invalidated. All electrical appliances should be checked at regular intervals for defects (eg. frayed wiring, badly fitted plugs, etc.). Any unsafe items should be removed from the Premises prior to offering it for rent. There is no statutory obligation on landlords or agents to have professional checks carried out on the electrical system or appliances. However, under the Electrical Equipment (Safety) Regulations 1994, the Plugs and Sockets etc. (Safety) Regulations 1994, both of which come under the Consumer Protection Act 1987, there is a statutory obligation to ensure that all electrical equipment is safe, which includes providing written instructions for use of each appliance.
We would strongly recommend that any Landlord, regardless of whether they see themselves as running a business or not, should make absolutely sure they are complying with these regulations to ensure that all electrical equipment supplied is safe. In order to do this, we strongly recommend:
· An Annual Portable Appliance Test (PAT) and electrical visual safety inspection is completed by a qualified electrician every 12 months.
· 5 yearly EICR (Electrical Installation Condition Report) inspections are completed by a qualified electrician to ensure safety and that the electrical system complies with current electrical regulations.
· Records of these safety checks conducted at the property should be retained and provided for inspection if required.
· Keep supplied appliances to a minimum.
· Make sure appliances supplied are complete and in working order – keep purchase receipts.
· Pay particular attention to second hand equipment – always have these items checked.
· Ensure that operating instructions and safety warning notices are supplied with the appliances.
· Ensure that flexes are in good order and properly attached to appliances and plugs.
· Ensure that earth tags are in place.
· Ensure that plugs are of an approved type with sleeved live and neutral pins.
· Ensure that plugs and sockets conform to BS1363 or BS1363/A for heavy duty uses.
· Ensure that all fuses are of the correct type and rating.
· Make sure that Tenant knows the location of and has access to the main consumer unit, fuses and isolator switch.
Full Management and Rent Collection Services only – if you are unable to supply us with documentation proving that the electrical system and all appliances supplied are safe, when you return this Agreement you authorise us to instruct a qualified electrician to arrange a PAT and EICR and agree to the contractor’s reasonable costs in respect of this. We strongly recommend that The EICR inspection is completed at 5 yearly intervals. This will be automatically carried out by us on your behalf without further notice unless we have received the relevant updated certification from you no less than 10 days in advance of the renewal date/s and we have acknowledged receipt of such from you in writing.
L. Part P building regulations – Electrical Safety Standards
Part P of Building Regulations is designed to save lives by putting the onus on anyone doing certain types of electrical work or having certain electrical work done in domestic premises to ensure that works are certified safe by a prescribed competent person. We strongly recommend that an EICR (Electrical Installation Condition Report) for tenanted properties is carried out at least every 5 years, or at each change of occupancy, whichever is sooner. The EICR must be completed by a prescribed competent person who can be either a firm or an individual who is a qualified electrical engineer. We can arrange an EICR on your behalf, the current costs being from £175 INCLUDING VAT.
Smoke alarms must be fitted to all let properties and should be regularly checked to ensure that they are in full working order. All alarms (which are battery operated) must be checked prior to a Tenancy commencing to ensure the alarm is in working order. If you would like a quote for the supply and fitting of these please contact us.
M. Gas Safety (Installations and Use) Regulations 1988
It is a criminal offence to let Premises with gas appliances, installations and pipework that have not been checked by a Gas Safe Registered Engineer. You will need to provide us with a copy of a Gas Safety Certificate (GSC) carried out no more than 12 months previously. If this GSC is not sent to us when you return this Agreement you give us authority to arrange for a gas safety check and agree to the contractor’s reasonable costs in respect of this. The GSC will need to be annually renewed and this will be automatically carried out by us on your behalf without further notice unless we have received the relevant updated certification from you no less than 10 days in advance of the renewal date/s and we have acknowledged receipt of such from you in writing. We need to give your Tenant documentary proof of your compliance with these Regulations at the commencement of the Tenancy and within 28 days of the GSC being renewed. If you use your own contractor we will need proof of their Gas Safe registration. No Tenancy can commence until we are in receipt of a valid GSC. If we do not manage or collect rent on the property it is the responsibility of the Landlord to ensure that future checks are carried out.
N. Energy Performance Certificate “EPC”
An EPC is required by law when a property is built, sold or put up for rent. We can arrange an EPC on your behalf, the current cost being £90.00 INCLUDING VAT.
If for whatever reason we are not in possession of an EPC within 5 days from the commencement of marketing the property, you hereby authorise us to proceed accordingly on your behalf to arrange this at the above cost.
O. Water Meters
If a Tenant asks to install a water meter the Landlord cannot refuse as the Tenant has a statutory right to do so.
P. Rent Arrears/Breaches of Covenant
It is your responsibility to take all necessary steps to ensure that actions are taken to protect your interests, including instructing solicitors and commencing legal proceedings, to preserve your rights and recover arrears of rent and to defend all actions or other legal proceedings and arbitrations that may be brought against you in connection with the Premises. All costs and disbursements incurred including legal costs and disbursements will be payable by you.
Q. Reimbursement of Agent
You will keep us reimbursed in respect of any claim, damage or liability, whether criminal or civil, suffered from and during the time that we are or were acting on your behalf unless it is due to our negligence or breach of contract.
Full Management – for the avoidance of any doubt we reserve the right to have work carried out on your behalf and to charge you for that work to ensure that you fulfil your contractual and statutory obligations as Landlord.
R. Mail
It is not part of our normal function to forward the Landlord’s mail, therefore no responsibility can be taken for mail sent to you at the Premises. We recommend that you arrange for it to be redirected by the Post Office.
S. Deposits
We will collect the Deposit together with the initial rental payment from the Tenant at the commencement of the Tenancy and, regardless of the service used by the Landlord, hold the Deposit in a stakeholder capacity. Any interest accrued will be used to cover any bank and administration costs incurred by ourselves. As stakeholder we will be unable to release the Deposit or any part of it to the Landlord or Tenant without the other party’s written consent (email is sufficient). The Deposit or any balance payable will be paid to the Tenant or Landlord as appropriate at the end of the Tenancy. After the Tenancy ends you are entitled, with the written consent of the Tenant, to ask us to deduct from the Deposit any of the following:
· any damage to the Premises and fixtures and fittings caused by the Tenant or resulting from any breach of the terms of the Tenancy Agreement by the Tenant;
· any damage caused or cleaning required as a result of any pet occupying the Premises whether or not the Landlord consented to its presence;
· any sum repayable to the Landlord to the Local Authority where housing benefit has been paid direct to the Landlord by the Local Authority;
· any instalment of the rent which is due but remains unpaid at the end of the Tenancy;
· any other breach by the Tenant of the terms of the Tenancy Agreement;
· any unpaid account or charge for water, electricity or gas or other fuels used by the Tenant in the Premises;
· any unpaid telephone charges.
You will need to specify the amounts deducted and the reasons for any deductions made. Provided the two parties agree to the deductions to be made we will send to you the amount agreed between the parties for damage, cleaning, unpaid bills or unpaid rent and pay the balance, if any, to the Tenant. If the amount of compensation you seek exceeds the amount held as the Deposit, you may require the Tenant to pay that additional sum within 14 days of the Tenant receiving that demand in writing as per the Tenancy Agreement.
To comply with Tenancy Deposit Protection legislation the Agent is a member of the Tenancy Deposit Scheme which is administered by:
| The Dispute Service Ltd
PO Box 1255 Hemel Hempstead Herts HP1 9GN |
Phone: 0845 226 7837
Fax: 01442 253193 Web: www.thedisputeservice.co.uk Email: deposits@tds.gb.com |
At the end of the Tenancy covered by the Tenancy Deposit Scheme
If there is no dispute we will keep any amounts agreed as deductions where expenditure has been incurred on behalf of the Landlord, or repay the whole or the balance of the Deposit according to the conditions of the Tenancy Agreement with the Landlord and the Tenant. Payment of the Deposit will be made within 10 working days of written consent from both parties.
If after 10 working days following notification of a dispute to the Agent and reasonable attempts have been made in that time to resolve any differences of opinion, there remains an unresolved dispute between the Landlord and the Tenant over the allocation of the Deposit it will (subject to the clause below) be submitted to the Independent Case Examiner (the “ICE”) for adjudication. All parties agree to co-operate with any adjudication. When the amount in dispute is over £5,000 the Landlord and the Tenant will agree by signing the Tenancy Agreement to submit the dispute to formal arbitration through the engagement of an arbitrator appointed by the ICE although, with the written consent of both parties, the ICE may at his/her discretion accept the dispute for adjudication. The appointment of an arbitrator will incur an administration fee, to be fixed by the Board of The Dispute Service Ltd from time to time, shared equally between the Landlord and the Tenant. The liability for any subsequent costs will be dependent upon the award made by the arbitrator.
The statutory rights of either you or the Tenant to take legal action against the other party remain unaffected. It is not compulsory for the parties to refer the dispute to the ICE for adjudication. The parties may, if either party chooses to do so, seek the decision of the Court. However, this process may take longer and may incur further costs. Judges may, because it is a condition of the Tenancy Agreement signed by both parties, refer the dispute back to the ICE for adjudication. If the parties do agree that the dispute should be resolved by the ICE, they must accept the decision of the ICE as final and binding. If there is a dispute we must remit to The Dispute Service Ltd the full Deposit, less any amounts already agreed by the parties and paid over to them. This must be done within 10 working days of being told that a dispute has been registered whether or not you or we want to contest it. Failure to do so will not delay the adjudication but The Dispute Service Ltd will take appropriate action to recover the Deposit and discipline us. We must co-operate with the ICE in the adjudication of the dispute and follow any recommendations concerning the method of the resolution of the dispute.
By signing this Agreement you agree to abide by the regulations of the TDS of which we are a member. If we do not fully manage your Premises we will charge an administration fee of £36.00 INCLUDING to cover costs for holding the Deposit and passing it to any relevant dispute service at the end of the Tenancy if you, the Landlord, and the Tenant do not agree deductions. The Deposit will be released when we receive written confirmation from both parties. Unless we manage the Premises we will not negotiate on your behalf unless requested by you in writing together with payment for our fees in the sum of £90.00 INCLUDING VAT to resolve any dispute. At the end of the Tenancy both the Landlord and the Tenant must agree deductions from the Deposit. If there is a dispute between the parties then the matter must be resolved by either the County Court or the Alternative Dispute Service (“ADR”) of which we are a member. We will retain the Deposit if the matter is referred to the County Court until we receive an Order from the Court when we will return the sums to the relevant parties as specified in the Order. If you and/or the Tenant choose ADR we will pass the Deposit or the sum in dispute to the service for adjudication. If we have to prepare documentation for the TDS in the form of photocopies or other relevant publishing material, we will charge you a fee of £60.00 INCLUDING VAT for this service, regardless of who might have instigated the ADR. If we have to attend Court on your behalf as a witness we will charge an hourly fee of £90.00 INCLUDING VAT per hour.
Incorrect Information
If the Landlord warrants that all the information he has provided to the Agent is correct to the best of his knowledge and belief, in the event that the Landlord provides incorrect information to the Agent which causes the Agent to suffer loss or causes legal proceedings to be taken, the Landlord agrees to reimburse and compensate the Agent for all losses.
T. Housing Act 2004 and licencing
The regulations in the above Act concerning Houses in Multiple Occupation (“HMOs”) became law on 6 April 2006 and were enforceable from July 2006.
The Landlord may not have to carry out any action to ensure compliance. All private dwellings must comply with the Housing Health and Safety Rating System (“HHSRS”) which is the new statistical means of measuring hazards and risk of injury at a property. This system applies to all properties but those falling into the above category are subject to inspection by the environmental health officer. The responsibility for ensuring premises comply is that of the Landlord. If we accept an instruction to let premises and subsequently an Order is served to comply with the HHSRS if we incur any costs for compliance due to an Order being served upon us you the Landlord agree to reimburse us within 14 days of written demand or agreeing by signing this document that the costs may be deducted from the rent or other money received.
Licensing
Under the Housing Act 2004, certain properties will need to be licensed by their Local Authority. If we believe that your property falls into this category we will inform you of this fact and of the alterations that we have been informed by the Local Authority may be required to allow you to gain a licence for your Premises. If your Premises potentially require a licence you will either need to obtain a licence from the relevant Local Authority or we will not be able to let your Premises.
It is the responsibility of you (the Landlord) to apply and pay for the licence. We will only offer Premises for let when we are in receipt of a copy of the licence, draft licence or documentation stating that the Landlord has applied for the relevant licence. If you refuse to supply us with a copy of your licence or refuse to obtain one, we will not accept any further instruction from you and will take no further part in the letting and/or management of your Premises. If we are forced to disinstruct ourselves once a Tenancy has commenced, you will remain liable for our full fees for the initial term of the Tenancy. We will inform the Tenant and the relevant Local Authority of our reasons for disinstructing ourselves in writing.
U. Interest on Clients’ monies
Any interest accrued on clients’ money which we hold will be retained by ourselves to cover bank and administration charges, etc.
V. Withdrawal from agreed offer
If a formal offer has been made by an applicant when we receive your notification it may not be possible to withdraw the offer if it has been accepted. If an applicant agrees to accommodate your request you should expect to meet reasonable costs and expenses incurred by him or her. If you instruct us to proceed with the proposed Tenancy and subsequently withdraw such instructions you agree to meet the costs of:
a) the Tenant’s referencing costs up to the sum of £120.00 INCLUDING VAT for each Tenant;
b) any costs entered into for the production of an Inventory, maintenance and required gas and electric inspections.
Should a Tenant withdraw after making an agreed offer (but prior to the Tenancy Agreement being signed and exchanged), the Landlord will not be entitled to any compensation from Cedar Estates or the Tenant.
W. Acts of third parties
We will not be responsible for any loss or damage that you suffer through the act, default or negligence of any third party which may arise otherwise than through the negligence, omission or failure on the part of Cedar Estates.
X. Data Protection Act
In order to comply with the Data Protection Act to prevent any unauthorised access to or use of personal data, we have the responsibility to keep information confidential and will only use it if fees are not paid and we wish to refer the matter to a debt collector or solicitor; or if we are specifically required do so by law; or to pass it to a government agency by law; when instructing solicitors; to change account details for utility suppliers and the council tax into or out of your name; when a contractor’s invoice has not been settled by you.
Y. SERVICE OF NOTICES
The provisions for the service of Notices are that if either party deliver by hand any Notices or documents which are necessary under the Agreement, or any Act of Parliament, to the other party by 5pm at the last known address of the other party, the documents or Notices will be deemed delivered on the next working day which excludes Saturdays, Sundays and Bank Holidays; or if any documents or Notices are sent by registered or recorded delivery post the documents will be deemed delivered upon proof of delivery being obtained; or if the documents or Notices are sent by ordinary first class post addressed to the other party at the last known address of the other party the documents or Notices will be deemed delivered two working days later which excludes Saturdays, Sundays and Bank Holidays. The address for service for the Landlord will be the contact address specified in this Agreement and the address for service for Cedar Estates will be 251 West End Lane, London, NW6 1XN. The Landlord also agrees to accept a Notice to terminate the Tenancy, by the Tenant, in the form of a letter or email. Where we serve notice on behalf of the Landlord, there will be a separate charge of £30.00 INCLUDING VAT.
DEFINITIONS
In this Agreement the following Definitions apply:
· Use of the singular includes the plural.
· Use of the masculine includes the feminine.
· “Agent”, “we” or “us” means Cedar Lettings Limited (Registration Number 3492097) trading as Cedar Estates, 251 West End Lane, London, NW6 1XN.
· “Jointly and severally liable” means that each person will be responsible for complying with the obligations of and paying all charges and costs under this Agreement, both individually and together.
· “Landlord”, “you” or “your” means anyone owning an interest in the Premises, whether freehold or leasehold, entitling them to possession of it upon the termination or expiry of the Tenancy and anyone who later owns the Premises.
· “Tenant” or “tenant” means anyone entitled to possession of the Premises under a Tenancy Agreement.
· “Premises” means any part or parts of the building, boundaries, fences, garden and outbuildings belonging to the Landlord. When the Premises are part of a larger building the Premises include the use of common access ways and facilities.
· “Inventory” or “Inventory and Schedule of Condition” means the document drawn up prior to the commencement of the Tenancy by the Landlord or the Agent, which includes the fixtures and fittings in the Premises.
· “Term” or “Tenancy” means the fixed Term of the Tenancy Agreement and any extension or continuation of the Tenancy whether fixed Term or Periodic arising after the expiry of the original Term.
· “Superior Landlord” means the person, company or organisation to whom ownership of the Premises reverts at the end of the lease.
· “Deposit” means the money held by the Agent in a stakeholder capacity during the Tenancy in case the Tenant fails to comply with the terms of the Tenancy Agreement.
· “Stakeholder” means that deductions can only be made by the Agent from the Deposit at the end of the Tenancy with the written consent of both parties.
· “Tenancy Agreement” means the contract drawn up between the Landlord and the Tenant specifying the obligations of the two parties.
· “TDS” means The Dispute Service whose details are shown in the Tenancy Agreement.
· “ICE” means the Independent Case Examiner of The Dispute Service Limited.
· “Agreement” means this Terms of Business signed between the Agent and the Landlord.
PROPER LAW AND JURISDICTION
This Agreement shall be governed by and construed in accordance with the law of England and Wales.
THE PROPERTY OMBUDSMAN FOR ESTATE AGENTS
Cedar Estates is a member of the TPO (The Property Ombudsman) and follows their Code of Practice for Letting Agents. The client agrees that Cedar Estates may give information about the letting and/or management of the client’s property to the Ombudsman if the client has registered a complaint and they ask for that information. Their website is www.tpos.co.uk Cedar Estates TPO membership number N3524.
INSTRUCTION OF AGENT
By signing and returning these Terms and Conditions you irrevocably instruct us to act on your behalf as your Agent with your full authority to pay invoices on your behalf if we manage the Premises, make deductions from the rent prior to submitting the balance to you and to sign and execute the Tenancy Agreement on your behalf.
KEYS
The Landlord shall be responsible for providing 3 full sets of entrance keys at least one week prior to the start of the Tenancy.
TELEPHONE CALLS TO AND FROM CEDAR ESTATES OFFICE
Please note that that calls may be recorded for training and security purposes.
Cedar Estates are members of The Property Ombudsman (TPO) redress scheme demonstrates commitment to Professional Standards. Please click HERE to see the scheme’s website.