** Terms & Conditions
**
INTRODUCTION SERVICES & FEES
INTRODUCTION SERVICES INCLUDING
1.Valuation
To request a valuation of your property you can either call, come in to any
of our offices or complete the valuation Request form from our website.
2.Processing the property
Once confirmation of your instruction has been received one of our in-house
photographers will process your property for marketing purposes. From one
visit they will produce high quality digital photographs, write and design
property particulars for both on-line and off-line marketing and source the
relevant aerial photography and location plans. This set of complete property
details is then uploaded onto our website. This allows us to start marketing
your property within 48 hours.
3.On the market
Four main areas will be concentrated upon: web, newspaper, television and
radio. The aim is to give your property maximum exposure, with the intention
of obtaining the best achievable rent quickly and efficiently.
4.Compliance with safety regulations
As a landlord, you have an obligation to ensure that your property complies
with all the necessary regulations which cover the safety of gas appliances,
the electrical installation and any furnishings supplied for the tenancy.
We can advise you on this and arrange the necessary inspections.
5.Viewing
It is our job to let your property for you, which is why we accompany prospective
tenants around the property.
6.proceeding with a suitable tenant
once a suitable tenant has been found, we will apply for references on your
behalf. If the tenant proves to be acceptable, we than proceed to the next
stage.
7.Tenancy Agreement
We will draw up the relevant paperwork forming an agreement between both parties.
8.Inventory
An inventory of the contents and condition of the property is usually produced
prior to commencement of the tenancy. This will be applied to both landlord
and tenant.
9.Rent and Deposit
Sagitta collects the rent on your behalf and a deposit from the tenant is
held.
10.Completion
Letters are sent out transferring the utilities into the name of your tenant
and keys are handed over. Congratulations, your property is now let!
FEES
The introduction service fee is ONE month rent. This fee will be deducted
from the rental received, and the balance forwarded to you along with the
deposit. On the event of there being insufficient funds to cover the commission
fees due, the landlord will be required to forward the outstanding balance
upon receipt of our invoice.
STANDARD MANAGEMENT SERVICES & FEES
STANDARD SERVICES INCLUDE
1. Advising as to the likely rental income
2. Advertising and generally marketing the Property
3. Interviewing prospective tenant and taking up full references
including bank reference and employer or previous landlord character reference.
Where necessary, additional security would be requested by means of a guarantor.
In the case of a company, a full bank reference would be taken.
4. Preparing the Tenancy Agreement and corresponding Notice
necessary for the Landlord to gain protection of the relevant Rent and Housing
Acts, renewing the Agreement where necessary at the end of the Term.
5. Liasing with a Landlord’s mortgages where necessary
with regard to references an Tenancy Agreement.
6. Taking a deposit from the tenant to be held by the Agent
as stakeholders until the end of the tenancy when the Property and contents
have been checked for unfair wear and tear.
7. Collecting the rent monthly and paying it over to the Landlord
monthly (normally within 30 days of collection) less any fees or expenses
due or incurred for the period.
8. Arranging with the service companies (such as the providers
of electricity, gas, and water and Council services) for meter readings to
be taken and advising them of the transfer of service contracts to the tenant(s)
at the beginning of each tenancy.
9. Carrying out regular inspections of the property on a quarterly
basis. Note that responsibility for the management of empty property is not
normally included, and will only be carried out by special arrangement.
10. Co-ordinating repair or maintenance including arranging
for tradesmen to attend the property and obtaining estimates where necessary,
supervising works and setting accounts from rents received.
11. Making payments on behalf of the Landlord, from rents received,
for water rates, insurance premiums, Council Tax, electricity, gas, service
charges and other necessary expenditure.
12. Carrying out a full property inspection and inventory check
at the end of each tenancy and dealing with matters relating to unfair wear
and tear before releasing the tenant’s deposit
13. Collecting and forwarding Landlord’s mail.
FEES
Additional items and other expenses will be charged according to the scale
of fees defined below
SCALE OF FEES
|
Standard Management Fee
|
13.5%
|
|
Renewal
|
£75 (For let only contract)
|
|
Short Lets (<6 months)
|
15%
|
|
Short Lets (<3 months)
|
20%
|
|
Inventories
|
£25 Per Page
|
|
Schedule of Condition
|
£25 per page (For let only contract)
|
|
Redirection of mail overseas
|
Cost of postage
|
|
Faxes & overseas telephone calls
|
Telephone Costs
|
|
Duplication & Testing of extra keys
|
£5
|
|
Issuing Notice of Seeking Possession
|
£50
|
OTHER SERVICES & FEE
METER READING
The agent will take meter readings whenever possible at each change in occupation
of the property and inform the service companies (such as electricity and
gas) of these readings and change in occupation. Please note that in many
cases the service companies (such as BT) require that the new occupiers formally
request and authorise the service take care to inform all parties (e.g. banks,
clubs, societies etc) of their new address; it is not always possible to rely
on tenants to forward mail.
LETTING AGREEMENT
The standard management service includes the preparation of a letting agreement
in the agent’s standard format and provision of a copy of this agreement
to a designated advisor or building society, if required. Should the landlord
or his advisors or mortgages require amendment of the contract or require
the agent enter into further work or correspondence, a further fee for this
work may be requested. It is agreed that the agent may sign the tenancy agreements
on behalf of the landlord.
INSPECTIONS
Under the standard management service, the agent will normally carry out inspections
quarterly starting after the first month. 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.
This would normally include inspecting the main items (carpets,
walls, cooker, main living areas and gardens). Where these were felt to be
unsatisfactory, a more detailed inspection would generally be made.
Following the departure of tenants, the agent carries out a
final inspection of the property. 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 the landlord require
it.
Details of any major deficiencies or dilapidation would normally
be submitted to the landlord together with any recommended deductions or replacement
values. It is agreed that the agent’s judgement will be final in this
matter. Should it be necessary, the case will be referred to arbitration with
the Royal Institute of Charted Surveyors, any costs being shared between landlord
and tenant, or as directed by the arbitrators.
HOLDING 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, and to protect the agent against any administrative expenses (take
out bank references, conducting viewing, re-advertising) that may be incurred
should the tenant decide to withdraw 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 o 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.
Upon signing the tenancy agreement, the agent will take a deposit
from the tenant(s) in addition to any rents due. The purpose of the deposit
is to protect the landlord against loss of rent or damage to the property
during the tenancy itself. These deposits are held by the agent as stakeholder
and will be kept in a separate and secure client account ready for refunding
(less any charges due) at the end of the tenancy.
RENEWALS:
Where the tenancy is renewed or extended to the same tenant (or any person
associated with that tenant), a renewal fee of 7.5% of gross rental for the
term shall be payable on the renewal date. The agent shall prepare the tenancy
agreement, if required, for the new or the extended tenancy.
Where the landlord requires collection of rents (items 6&7
of the Standard Management Service) in addition to the letting service, additional
fees of 4% will be charged and deducted from rents collected.
LETTINGS MANAGEMENT
We offer the very best management service available, which not
only deals with all the day-to-day problems that can arise in residential
properties but also helps landlords to comply with the large number of new
rules and regulations governing residential lettings. We maintain constant
liaison with the tenant and carry out regular visits at least four times a
year providing the landlord with comprehensive feedback. In addition we will
negotiate any end-of-tenancy claim and can also arrange favourable rates on
contents and building insurance.
Where an individual landlord often has difficulty in finding
reliable trades people, we have immediate access to an extensive range of
general contractors and specialists, all of whom are completely trustworthy
and have worked for our clients for a number of years. These include:
·Builders
·Plumbers
·Electricians
·Painters & Decorators
·Plasters
·Gardeners
·Carpenters
·Qualified gas engineer
The letting of property is now closely regulated with respect
to consumer safety. The law makes particular demands regarding the safety,
servicing and inspection of the gas and electric appliances and installations
within a property, and with respect to the type of any furniture and soft
furnishings that are also provided. The following regulations apply:
- Furniture and Furnishing (Fire)(Safety) Regulations 1988
- Gas Safety (Installation and Use) Regulations 1994
- Electrical Equipment (Safety) Regulations 1994
The agent shall ensure that all electrical equipment is checked
at the beginning o the tenancy and every year thereafter at the cost of the
landlord. The landlord agrees to indemnify the agent against any expenses
or penalties that may be suffered as a result of non-compliance of the property
with fire and appliance safety standards.
OWNERSHIP
The landlord is the sole owner of the property and that all necessary consents
to enable him to enter into the Agreement have been obtained and that this
Agreement has not been granted in breach of any conditions.
MAINTENANCE:
The Landlord should warrant that the property is made available in good and
rentable condition and the property, beds, sofas and all other soft furnishings
conform to the current fire safety regulations.
The Landlord agrees to make the Agent aware of any ongoing maintenance
problems. Subject to a retained minimum expenditure limit (UK landlords:£100,
Overseas landlords:£200) on any single item or repair, and any other requirements
or limits specified by the Landlord, the Agent will administer any miscellaneous
maintenance work that needs to be carried out on the Property.
It is agreed that in an emergency or for reasons of contractual
necessity where reasonable endeavours have been made to contact the Landlord,
the Agent may exceed the limits specified. The agent endeavours to select
competent tradesmen at a reasonable price but is unable to personally guarantee
the standard of workmanship or any liability arising thereof, although the
Landlord retains the right to pursue any claim against appointed tradesmen
for substandard work. The landlord will normally be approached for authorisation
of works exceeding £200 but in emergencies or when the landlord cannot be
contacted, the Agency may arrange for such work to be carried out without
the landlord’s authorisation.
By law, it is necessary to carry out an annual inspection and
service for the central heating and any gas appliances. The agent will carry
these out on the Landlord’s behalf and administer the necessary inspection
and maintenance records.
INDEMNITY
The Landlord agrees to indemnify the agent against any costs, expenses or
liabilities incurred or imposed on the agent provided that they were incurred
on behalf of the Landlord in pursuit of the agent’s normal duties. To
assist the agent in carrying out his duties effectively, the Landlord agrees
to respond promptly with instructions where necessary to any correspondence
or requests from the agent.
OVERSEAS RESIDENTS
When letting property and collecting rents for landlords overseas, the agent
is obliged by the Taxes Management Act (TMA) 1970 (or under similar powers
of any future tax legislation) to deduct money (currently equivalent to 22%
of the gross rents) to cover any tax liability.
In this situation, the agent also requests that the landlord
appoint an accountant or reserve to the agent the right to employ a suitably
qualified accountant in order to manage correspondence with the Inland Revenue.
A standard annual charge will be made for this work and administration
expenses may be charged by the agent for further work requested by the landlord,
the landlord’s accountant or the Inland Revenue in connection with such
tax liabilities.
INVENTORY
The standard inventory will include all removable items in the property (except
those of negligible value) together with carpets, curtains, mirrors, sanitary
ware and other articles, which, in the opinion of the agent, need regular
checking. Landlords should not leave any articles of exceptional value in
the property without prior arrangement with the agent. The standard inventory
services do not include a full schedule of condition (condition, colour &
decoration of ceiling, walls, doors & fittings etc) or photography; this
can be prepared at the landlord’s request.
COUNCIL TAX
Payment of Council tax will normally be the responsibility of the tenants
in the property. However, landlords should be aware that where a property
is empty, let as holiday accommodation, or let as a house in multiple occupation
responsibility for payment of Council Tax then rests with the owner of the
property.
INSTRUCTIONS
It is agreed that any instructions to the agent from the landlord regarding
termination, proceedings, major repairs, payment details or other significant
details regarding the letting be confirmed to the agent in writing.
SALE OF PROPERTY
In the event of a party introduced by the agent (or any person or body corporate
associated with that party) subsequently purchasing the property, whether
before or after entering into a Tenancy Agreement , commission shall be payable
by the landlord to the agent on completion of the sale at the rate of 1% of
the sale price, plus VAT (if applicable).
INSURANCE
The landlord shall be responsible for the property being adequately insured
and for ensuring that the insurance policy covers the provision that the property
is being let.
LEGAL PROCEEDINGS
The agent will act on any delays of payment or other defaults in the first
instance. Where the agent has been unsuccessful in these initial actions,
or there are significant rent arrears or breaches of the tenancy agreement,
the landlord will be advised accordingly. A solicitor would then be appointed
and instructed by the landlord (except where the agent is unable to contact
the landlord, in which case the agent is authorised to instruct a solicitor
on the landlord’s behalf). The landlord is responsible for payment of
all legal fees and any related costs.
SHORT LETS
For short Lets (less than six months) the administrative overhead (and therefore
the management charges) are proportionally higher. There are also some aspects
of the management services, which are different, or which cannot be provided
in the case of short lets:
(a) The agent will not always be able to interview tenants and
take up references for short lets (including holiday lets) especially for
visitors arriving from aboard.
(b) In many short lets (e.g. holiday lets) deposits may have to be returned
without prior consultation with the landlord.
(c) It may not always be possible to make regular monthly payments but the
agent shall aim to pass on any rents within 30 days of receipt.
(d) Services (electricity, gas, Water Rates, etc.) will often be left connected
during a holiday let and will be included in the rent quoted as will Council
Tax. In case of uncertainty, the landlord should contact the local Council
Tax collection office.
TERMINATION
Termination by a client of Sagitta’s employment as letting
or managing agent shall have no effect upon a client’s liability to
pay any fees as specified herein. Such termination shall not alter retrospectively
the terms and conditions between Sagitta and the client as contained in this
text or such modifications to the above terms as have been made by the previous
written agreement between the parties. Termination of Sagitta’s employment
as letting and managing agents shall be by 3 months written notice.
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.
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 being entered into will be communicated
to the landlord 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.
LETTING PREPARATION
PREPARING THE PROPERTY FOR LETTING
A good relationship with tenants is the key to a smooth-running tenancy. As
Property Managers the relationship part is our job, but it is important that
the tenants should feel comfortable in their temporary home, and that they
are receiving value for their money. This is your job. Our policy of offering
a service of quality and care therefore extends to our tenant applicants too,
and we are pleased to recommend properties to rent that conform to certain
minimum standards. Quality properties attract quality tenants.
GENERAL CONDITION:
Electrical, gas, plumbing, waste, central heating and hot water systems must
be safe, sound and in good working order. Repairs and maintenance are at the
landlord's expense unless misuse can be established.
APPLIANCES:
Similarly, appliances such as washing machine, fridge freezer, cooker, dishwasher
etc. should be in usable condition. Repairs and maintenance are at the landlord's
expense unless misuse can be established.
DECORATIONS:
Interior decorations should be in good condition, and preferably plain, light
and neutral.
FURNISHINGS:
It is recommended that you leave only minimum furnishings, and these should
be of reasonable quality. It is preferable that items to be left are in the
property during viewing. A list of recommended items is attached.
SUGGESTED MINIMUM CONTENTS FOR FURNISHED LETTING:
- LOUNGE: Settee, Two armchairs, Coffee table
- DINING ROOM : Dining table and chairs, Sideboard
- KITCHEN: Cooker, Fridge/freezer, Washing machine
- BEDROOMS: Bed, Wardrobe, Drawer Unit
- GARDEN: Lawnmower Gardening tools
- GENERAL: Vacuum Cleaner, Iron and Board, Dustpan and Brush, Lampshades in
all rooms, Curtains at all windows, Appropriate floor coverings
PERSONAL ITEMS:
Personal possessions, ornaments, pictures, books etc. should be removed from
the premises, especially those of real or sentimental value. Some items may
be boxed, sealed and stored in the loft at the owner's risk. All cupboards
and shelf space should be left clear for the tenant's own use.
GARDENS:
Gardens should be left neat, tidy and rubbish-free, with any lawns cut. Tenants
are required to maintain the gardens to a reasonable standard, provided they
are left the necessary tools. However, few tenants are experienced gardeners,
and if you value your garden, or if it is particularly large, you may wish
us to arrange maintenance visits by our regular gardener.
CLEANING:
At the commencement of a tenancy the property must be in a thoroughly clean
condition, and at the end of each tenancy it is the tenant's responsibility
to leave the property in similar condition. Where they fail to do so, cleaning
should be arranged at their expense.
MAIL FORWARDING:
We recommend that you make use of the Post Office redirection service. Application
forms are available at their counters, and the cost is minimal. It is not
the tenant's responsibility to forward mail.
INFORMATION FOR THE TENANT:
It is helpful if you leave information for the tenant on operating the central
heating and hot water system, washing machine and alarm system, and the day
refuse is collected etc.
KEYS:
You should provide one set of keys for each tenant. Where we are Managing
we will arrange to have duplicates cut as required.
