TERMS
AND CONDITIONS
OUR SERVICE
STANDARD
SERVICE: LETTINGS ONLY
Where Alliance Residential is instructed to let the property it will
carry out the following:
(a) Advise on market rents, furnishings and any other pertinent
matters.
(b) Advertise the property for letting.
(c) Arrange appointments for prospective tenants to view the property.
(d) Introduce tenants.
(e) Take up and obtain written references.
(f) Draw up and execute a Tenancy Agreement.
(g) Receive deposit from tenant against dilapidation(to be held by the
landlord).
Our charge for this service is just 8% of the total annual rent
reserved as shown on the tenancy agreement.
Where the tenancy is for a period less than 6 months our commission
will be 20% of the gross rental for the period of the lease.
Where the tenancy is for a period of less than 3 months , please refer
to our “Short Lets” Terms of Business.
SILVER
SERVICE: LETTINGS AND RENT COLLECTION
All of the above plus…
(a) Demand and collect rents.
(b) Collecting and holding Deposit
(c) Remit rents received to you, your bank or building society.
(d) Submit rental statements to yourself and/or your accountant.
Our charge for this service is just 10% of the total annual rent
reserved as shown on the tenancy agreement.
GOLD
SERVICE: FULL MANAGEMENT
All of the above plus…
(a) Regular inspections at intervals agreed between us.
(b) Organising repairs and maintenance up to a maximum of £500.
(c) Organising repairs and maintenance with the agreement of the
landlord where the sum exceeds £500.
(d) Organising payments of ordinary outgoings (insurance premiums,
maintenance contracts etc. )
Our charge for this service is just 12% of the total annual rent
reserved as shown on the tenancy agreement.
GENERAL
TERMS – ALL SERVICES
Duration
Our appointment as Managing Agents is for an agreed initial period
of twelve months and will continue
thereafter on the same terms and conditions (as may be amended in the
future),subject to three months written notice to terminate on either side.
Renewals
At the end of each period the tenancy agreement will be renewed
automatically unless notice has been served as above or we receive written
notice that you wish us to select new tenants. The renewal fee is payable
whether or not it is negotiated by Alliance Residential. For continuation periods
beyond the first 12 months: 5% renewal of the total agreed rent for each
subsequent term. Renewal fees are due within 7 days of invoice.
Charges
The following commissions are payable by the landlord following the
introduction of a tenant by Alliance Residential to the property who takes up a
tenancy either directly or indirectly or via an introduction from an existing
tenant found by Alliance Residential:
(a) All cases. Our standard charge for letting a property is 10%
(renewals as above) of the total annual rent reserved. This charge applies to
all of our services and will be deducted from the first months rent paid by the
tenant unless there is a contrary written agreement between us.
(b) Silver Service. There will be an additional charge of 2% of the
total rent reserved per annum. The additional 2% is payable as an introductory
fee at the time (or before) the tenancy agreement is granted or renewed.
(c) Gold Service. There is an additional charge of 5% of the total rent
reserved per annum. The additional 5% is deducted from the rent every month, or
in the event of default by the tenant, by invoice.
Our standard service fees will be payable whether or not we directly or
indirectly introduce a prospective tenant who rents your property.
COMMISSION
& FEES for THE SHORT LETS SERVICE
We will not undertake a Short Let without also providing a Management
Service.
Lets from 1 day – 6 weeks.
Upon exchange of leases our commission for lets from 1 day to 6 weeks
is 25% for letting the property and 5% for managing the property.
Lets from 6 weeks – 3 months
Upon exchange of leases our commission for lets from 6 weeks to 3
months is 20% for letting the property
and 5% for managing the property.
All fees are collected at the commencement of the tenancy and at the
commencement of any extension period.
Minimum Fee ...our minimum fee
for all short lets is £300, plus VAT.
Replacement
of tenants
(d) Should a tenant or tenants that we have selected leave the property
(for whatever reason ) during the period that we are Managing Agents of the
property, we will (provided that we have not received notice to terminate the
agreement between us) endeavour to locate alternative tenants for you at no
charge and will continue our arrangement on the same basis as before.
(e) PLEASE NOTE. Should you elect not to replace the tenants or
if it is not practicable to replace them or if you terminate your
agreement with us for any reason then no
percentage of the standard letting charge or introductory fee is refundable.
Selection
of Tenants
Although reasonable efforts will
be made to ensure that tenants are suitable, Alliance Residential do not accept
any liability whatsoever for any tenants supplied through the company.
Once a prospective tenant shows an interest in a property , we will usually take a small
deposit from them to confirm their interest, agree the terms of the tenancy
agreement on your behalf and then take up references Wherever possible we will
obtain a financial reference, an income
reference, and a previous landlord or professional reference.. It will be for
you to confirm that the references are acceptable. In the
event that you are uncontactable we
will have the right to decide on your behalf whether the references are
acceptable but we will not accept any responsibility for their accuracy or the
information contained in the reference, nor shall we be held to warrant the
suitability of the tenant.
Tenancy
Agreements
The Agreements which are used have been approved by our own legal
consultant and cover most eventualities, but we suggest that the landlords own
solicitors be given the opportunity to review the agreement as neither we nor
our legal consultant can take any responsibility whatsoever in relation to the
use of the agreement in any particular case.
Utilities
The in going tenant will be instructed to apply to the water rates, electricity,
gas and telephone companies for a credit agreement and supply contract. You
will need to notify the above utility companies at the commencement of the
tenancy to ensure that there are no discrepancies with the change over. We will
send confirmation letters to the utility companies if we are provided with meter
readings taken at the commencement of the tenancy. However we are unable to
correspond further than a confirmation letter as above, because utility
companies do not generally take instruction from a third party .
The Rent
The rent quoted to a tenant by us on your behalf, unless otherwise
agreed, must be inclusive of all out goings for which you are responsible (i.e.
service charges, ground rent etc.) with the exception of water rates, gas,
electricity, telephone and TV. Any rent requested by us on your behalf will not
include reference to Council Tax. This tax will normally be levied separately
on the occupants of the property, but in some cases the local authority may
wish to charge you.
Rent
Arrears/breaches of covenant
It is your responsibility to take all necessary steps to ensure that
actions are taken to protect your interest, including instructing solicitors
and commencing legal proceedings to reserve 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 property.
We will have full authority to compromise any such matter on such terms
as we see fit. All costs and disbursements incurred including legal costs and
disbursements will be payable by you.
Sale of property
In the event that a party introduced by us ( or any person or body
corporate associated with such a person ) purchases the property to be let,
then commission shall be payable to us on completion of such sale, such
commission to be based on the sale price and calculated in accordance with our
standard commission rate for residential property then in force. In the event
of the property being sold to a third party with tenant still in occupation,
the landlord shall remain liable for all renewals.
Third Party Introductions
In the event of a third party associated with a tenant or occupant
entering into a subsequent tenancy agreement, commission shall be payable to us
at the commencement of the tenancy. This shall be at 10% 12% or
15% of the annual rent reserved depending on which service you are using.
Courts
and tribunals
Applications for fair rent or appearances before the rent officer, rent
assessment committee any other court or tribunal will be by special arrangement
only and will form the subject of an additional charge.
Solicitors
Charges
Should it be necessary for a solicitor to be instructed in respect of
any rent arrears or breaches of the covenant, you will be responsible for
instructing your own lawyer and for all fees involved. In your interests, we strongly recommended
that you take advantage of our legal cover and rental protection service.
Inventories
We strongly recommend inventories are carried out. An inventory is
necessary in all cases to avoid difficulties arising from damages claims.
Inventories should, where applicable, also show that furnishings, soft
furnishings, and all electrical equipment comply with current legislation. We
do not employ inventory clerks. However, we can, upon request, supply a list of
established firms for you to instruct
with their fee being your responsibility . Charges made by the inventory clerk
are based on the time taken to prepare the inventory and to check the tenant
into the property. Alliance Residential cannot accept any liability for errors
omissions on their part.
Indemnity
of Agent
You will indemnify and keep us indemnified from and against any damage
or liability whether criminal or civil suffered from and during the time that we are or were acting on your
behalf and the avoidance of any doubt we reserve right to have any work necessary
carried out on your behalf and to charge you for that work to ensure that you
fulfil your contractual obligations as Landlord.
Mail
It is not part of our normal function to forward the Landlords mail.
Therefore no responsibility can be taken for your mail and it is recommended
that it be redirected via the Post Office.
SILVER
AND GOLD SERVICE
Void
Periods
The management service is only provided during the term of the tenancy
and does not include supervisions of the property when it is unlet. However, in
the course of finding you a tenant, periodic visits can be made by separate
agreement and subject to an agreed fee.
Rent
Collection
If you instruct us to collect rent on your behalf, this may be done by
use of standing order or mandate. YOU ARE ADVISED that, should the tenant
breach any terms of tenancy agreement, the continued payment of the rent by the
tenant may be deemed to be a waiver by you of the tenants breach and your
remedy of forfeiture may be lost. Therefore. If you DO NOT wish a standing
order mandate to be used for rent collection please advice us in writing before
commencement of the tenancy agreement.
Rent
Remittances
Banking arrangements are such that it is necessary to allow
approximately six working days for rent cheques to be cleared before
transferring moneys into client`s accounts.
GOLD
SEVICE FULL MANAGEMENT
Management Service
Where Alliance Residential is appointed managing agents of the property
then for the purpose of allowing the company to carry out this service the landlord
expressly authorises Alliance Residential to:
(a) Carry out repairs to the property up to maximum of £500 for any one item. Save in emergencies,
estimates are obtained and submitted for your approval in respect of and
repair, renewal or redecoration work likely to cost more than £500. An
additional supervisory fee of 10% of the total cost is charged to the landlord.
Specialist surveyors can advise, if required, for an additional charge.
(b) Inspect the property, if instructed
to do so, on a periodic basis. We will investigate any defects which come to
our notice or which are brought to our attention by the tenant and advise the
landlord of any problems promptly. We cannot accept responsibility for hidden
or latent defects.
Management
of Outgoings
We will, where required, pay outgoings such as rates, insurance
premiums,
ground rent, service charge and/or maintenance charge or similar
contributions and account to you. Should this be required, you will be
required to advise the relevant organisation to send their account to us.
Although we shall do our best to query any obvious discrepancies, it must be
understood, that we are entitled to accept and pay without question, any
demands and accounts which appear to be in order. In particular we cannot accept
responsibility for the adequacy of any insurance cover or for the verification
of service / maintenance charge demands or estimates, where applicable. It
is imperative that we receive detailed
instructions regarding any insurance premiums you wish us to pay.
THE LANDLORD OBLIGATIONS
Furniture
and Furnishings
The landlord warrants to the Agent that all upholstered furniture and
furnishings in the property complies
with the requirements of the
Furniture and Furnishings (Fire) (Safety) (Amendment) Regulations 1993.These
regulations specify that any property which has not previously been let should
have soft furnishings which comply with the `CIGARETTE TEST` and carry the
appropriate label. For properties let prior to 1993 existing furniture may
remain until December 31st 1996, although additional or
replacement furniture must comply with
the current regulations. Furniture manufactured prior to 1950 is exempt from
the regulations.
Gas
Equipment
It is essential that all gas appliances are served and safety checked
by a Corgi registered company at least once a year and records of these checks
kept by the Landlord in order to comply
with the Gas Safety (Installation & Use) Regulations 1994.
Electrical
Equipment (Safety) Regulations 1994
As Landlord you will be responsible for ensuring that all electrical
installations and appliances within the property comply with the above
regulations. In addition you are responsible for providing instructions for all
items of electrical equipment for your tenant.
Mortgagee`s
and Freeholder`s Consent
The Landlord shall obtain the consent to any letting from any mortgagee
of the property. The Landlord shall , if applicable, obtain the consent of any
Freeholder or Superior Landlord of the
property to any letting of the property.
Insurance
The landlord must effect his own building and contents insurance in all
respects and must inform his insurers of the letting of the property . Alliance
Residential will not be responsible for arranging or renewing such insurance.
Instruction
of agent
Upon receipt of these terms and conditions duly signed by you or your
duly authorised representatives , we shall be deemed to be irrevocably
instructed on your behalf as your agent with your full authority to sign or
execute , on your behalf , all documents necessary to carry out the effective
letting of your property on terms previously notified to you and in the event
of your being unobtainable , upon terms we consider to be reasonable acceptable
to you.
STATEMENT
*I/We confirm that I/We have read and understood the attached Terms and
Conditions and hereby authorise Alliance Residential to act on my / our
behalf in the letting and management of
the under mentioned property during the agreed letting period, to sign
agreements , to collect rents where due on my/our behalf and to take all
necessary actions on my/our behalf in the maintenance of the subject property.
*I/We agree to pay by way of deduction from the rental income the
respective charge and management fees (where applicable) as set out in the
attached Terms and Conditions of which I/We retain a copy , and to indemnify
Alliance Residential for all costs incurred on my/our behalf.
I/We confirm that the under mentioned property and its contents comply
with the requirements of (set out above safety regulations )and that all
relevant furnishings are labelled accordingly.
I/We acknowledge that I/We will be responsible for obtaining permission
to let from my/our mortgagee or lessor.
*I/We confirm that we are the sole/joint legal landlords of the
property known as:
*Please delete as appropriate---------------------------------
ADDRESS OF PROPERTY TO BE LET:
I/We wish to undertake the letting only service at: 8%YES/NO
I/We wish to undertake the letting plus rent
collection at: 10%YES/NO
I/We wish to undertake the letting and management at :
12% YES/NO
FULL NAME(s) and ADDRESS OF LANDLORD:
Signed: (Landlord)
Date
Signed: (Alliance Residential)
Date
N.B.All
fees are subject to VAT at the governing rate