TENANCY AGREEMENT
The Standard Management Service includes the preparation of a tenancy agreement in the Agent’s standards form(s) and provision of a copy of this agreement to a designated adviser or building society. Should the Landlord or his advisers or mortgagees require amendment of the contract or require the Agent enter into further work or correspondence, a fee for this extra work may be requested. It is agreed that the Agent may sign the tenancy agreement (s) on behalf of the Landlord.
INSPECTIONS:
Under the Standard Management Service, the Agent will normally carry out inspections whenever necessary. It is not the intention to check every item of the inventory at this stage; the inspection is concerned with verifying the good order of the tenancy (i.e. house being used in a ‘tenant-like’ manner) and the general condition of the Property.
Following the departure of tenants, a final inspection of the Property is carried out by the Agent.
Testing of all the electrical appliances, heating system and plumbing is not feasible during this inspection; a qualified contractor should be appointed for this purpose should it be required by the Landlord.
HOLDING OF FEES & DEPOSITS:
A holding fee is generally taken from a tenant applying to rent a property. The purpose of this fee is to verify the tenant’s serious intent to proceed with the application. The holding fee does not protect the Landlord against loss of rent due to the tenant deciding to withdraw, or references proving unsuitable, although early acceptance of rent from the applicant would not be advisable until satisfactory references have been received. Landlords should notify the Agent where they wish a larger security fee or deposit to be carried to protect against loss of rents, or insurance undertaken.
Upon signing the tenancy agreement, the Agent takes a dilapidations deposit from the tenant(s) in addition to any rents due. The purpose of the dilapidations deposit is to protect the Landlord against loss of rent or damage to the Property during the tenancy itself. These deposits are transferred to the Landlord who will have to (by law) secure all tenants deposits in a Government Authorised Tenancy Deposit Scheme. Upon registration of the deposit it is mandatory that the Landlord provides the tenant with a copy of the certificate.
One such scheme is Tenancy Deposit Solutions Ltd (TDSL).
Their details are:
Tel: 0871 7030552
Website: www.mydeposits.co.uk
3rd Floor, Kingfisher House
Station Road,
Barnet, Herts
EN5 1NZ
TERMINATION:
The agreement may be terminated by either party by way of two months’ written notice. The Minimum Fee applies if on termination the total fees due are less than the Minimum Fee.
A placement fee equivalent to one month’s rent will be payable where the Landlord intends to continue letting to tenants introduced by the Agent after the termination of this agreement. Where cancellation of this agreement is unavoidable due to circumstances beyond the control, of either party, the Minimum Fee will not apply and any pre-payments will be returned to the person entitled to them, less any expenses reasonably incurred to the date of cancellation.
The Landlord shall provide the Agent with any requirements for return and repossession of the Property at the earliest opportunity. Landlords should be aware that any tenancy agreement entered into on the Landlord’s behalf is a binding legal agreement for the term agreed. Details of any tenancy agreement being entered into will be communicated as soon as possible.
Landlords should be aware that the legal minimum notice period to tenants under assured tenancies is generally two months (should the contract allow for early termination) and this needs to be given even in the case of a fixed term tenancy which is due to expire. However, if tenant refuses to leave after termination of tenancy, possession can only be obtain through a court order.