Landlord Terms and Conditions

Landlord Terms and Conditions

  1. Service levels

1.1 Our Let Only Service

  • The Agent will arrange to provide a guide on the rental price of the Property, usually by visiting the property and undertaking a valuation.
  • The Agent will promote the Property in appropriate ways to find a suitable tenant for the Property.
  • The Agent will arrange for the pre-tenancy checking and paperwork for the Property. This may include the initial requirement, but not ongoing requirement for, a gas safety record, an energy performance certificate, electrical installation testing, portable appliance testing, a fire risk assessment, an asbestos risk assessment (where applicable) and a legionella risk assessment. We will not be responsible for checking the licensing status of the Property under Parts 2 and 3, Housing Act 2004 or confirming that you have appropriate planning permission or all necessary permissions from mortgagees, insurers, or other legal or beneficial owners of the Property. All costs will be borne by the Landlord, even if the Property is not actually let through the Agent. If you already hold valid paperwork all current copies must be supplied to the agent on instruction and before marketing of the property has commenced. This element is amended in our Full Management Service.
  • The Agent will arrange viewings with prospective tenants either using the keys supplied by the Landlord or in co-ordination with the current occupier. All viewings will be accompanied by the Agent unless agreed otherwise.
  • Once a prospective tenant who is interested in the Property has been found, they will be asked to complete an application form giving information about themselves.
  • The Agent will then take references where appropriate to the circumstances of the prospective tenant. This may be done by the Agent or may be outsourced to a referencing company as the Agent thinks fit.
  • The Agent agrees under the Immigration (Hotel Records) Order 1972 to be the person responsible for complying with the requirements, as appropriate, before the initial move in. The Landlord will be responsible for any further checks needed under the Immigration (Hotel Records) Order 1972.
  • On receipt of references the Agent will set up the necessary paperwork to let the property on an appropriate tenancy or licence.
  • The Agent will sign up the Tenant and collect any money due, (if applicable) giving the Tenant copies of appropriate paperwork.
  • If a deposit has been collected and requires protection under the Housing Act 2004 rules then you will either need to have a custodial scheme account of your own or you will have to purchase protection with an insured scheme. The deposit will then be paid to you directly by the prospective tenant for you to register within the legal and appropriate timeframes.  We will not have any involvement in the agreement about the refund of the deposit or any disputes at the end of the tenancy.
  • For Let Only Service landlords only, the Agent will send the relevant paperwork to the Landlord. This element does not apply to any other level of service.

 

 

1.3 Full Management Service

In addition to the Let Only Service items:

  • Where applicable, the Agent will instruct the following safety certificates/risk assessments.

– Gas Safety Record

– Carbon Monoxide installation and testing 

– Energy Performance Certificate 

– Electrical Installation Condition Report

– Portable Appliance Testing

– Fire & Smoke Alarm Test

– Fire Blanket Installation

– Emergency Lighting

– Fire Risk Assessment 

– Asbestos Risk Assessment 

– Legionella Risk Assessment. 

– Property licence 

 

We will not be responsible for checking the licensing status of the Property under Parts 2 and 3, Housing Act 2004 or confirming that you have appropriate planning permission or all necessary permissions from mortgagees, insurers, or other legal or beneficial owners of the Property. All costs will be borne by the Landlord, even if the Property is not actually let through the Agent. If you already hold valid paperwork all current copies must be supplied to the agent on instruction and no later than the check-in of the tenant.

  • The Agent will use its reasonable endeavours to arrange minor repairs, general maintenance and replacements to the property without consulting the Landlord beforehand up to the limit agreed in writing upon giving instruction, (or up to the value of one month’s rent where no figure has been specifically agreed). If you have an approved contractor that you wish for us to instruct on your behalf, it is the responsibility of the landlord to provide us with their relevant contact details, proof of qualifications and insurances. The Agent will not be responsible for damage or loss incurred to the Property, Tenant or the Landlord in the event of repairs, general maintenance or replacements not being carried out.
  • The Agent will make periodic visits to the property and send a report to the Landlord where requested, but such visits and reports can only be regarded as general oversight of the Property and its care by the Tenant and will only detect matters which are obvious on a cursory visual inspection. The Agent does not accept responsibility for any actual variance between the report and the items reported upon. The Agent will liaise with the Tenant on all day-to-day matters arising.
  • The Agent will use reasonable endeavours to assist with recovering possession of the Property in accordance with instructions received but cannot be liable for any delays, damages or costs incurred because such vacant possession is not achieved within the timescale requested. It will be the responsibility of the Landlord to instruct solicitors with whom the Agent will liaise. The Agent will not be liable for any legal or other costs incurred in any action against current or previous tenants undertaken on the Landlord’s instructions.
  • Unless otherwise agreed, if a deposit has been collected and requires protection under the Housing Act 2004 rules, the Agent will protect the deposit and negotiate the return of the deposit at the end of the tenancy. If a dispute is raised, then the Agent will assist the Landlord in the deposit dispute process.
  • The Agent will always use its best endeavours to collect rents or other charges due from the Tenant and provide monthly accounts to the Landlord. However, the Agent will not be liable for any arrears nor for any legal or other costs incurred by the Agent or the Landlord or any other party in respect of the recovery of such arrears. In the event that arrears remain outstanding, and our in-house arrears process has been exhausted, it is the responsibility of the landlord to determine how to proceed, whilst considering the advice provided to them by the Agent.

1.4 All levels of service

  • The Landlord will be responsible for the arrangement and valid continuance of adequate buildings and contents insurance on the Property unless specifically agreed otherwise in writing with the Agent. Furthermore, the Landlord will inform the Agent in writing of any action that needs to be taken to ensure continuance of insurance either for renewal or because the Property is vacant.
  • The Agent should be informed immediately of any substantial change affecting the Property and/or the Agent’s management of it. The Landlord accepts that the Agent can best carry out their management function if they are aware of possible problems arising.
  • The Landlord agrees to indemnify the Agent (compensate the Agent) against the cost of complying with any existing or future legislation affecting the letting of the Property and the cost of repairing and removing and replacing any dangerous and/or defective equipment and/or furnishings with safe and compliant equipment and/or furnishings.
  • If the Agent feels it will provide better service, the Agent can arrange to instruct sub-agents to assist in the marketing of the Property. This will be at no additional cost to the Landlord unless specifically agreed and confirmed in writing.
  • This agreement only refers to the management of the property/properties listed in this agreement. If the Property is in a multi-occupied dwelling (e.g. flats within one building/block management), the Agent will not be responsible for the building or any elements of communal area management unless agreed with the Landlord in a separate term of business.
  • Additional services are available for a fee in respect of all levels of service.

 

  1. The Landlord agrees and confirms:

2.1        That the Landlord is the legal owner of the Property or that the Landlord is authorised by the owner to enter into this agreement and is entitled to receive rental income.

2.2        That the Agent is appointed as agent for the Landlord of the Property.

2.3        That the Landlord gives the Agent authority to act on the Landlord’s behalf and to do anything which the Landlord could do and that the Landlord will approve of everything done by the Agent in good faith except for negligent acts, omissions or breach of contract.

2.4   That the Landlord has consent from all necessary persons, including any legal or beneficial owners to  instruct the agent and let the Property.

2.5 In compliance with UK financial sanctions regulations, Nicholas Humphreys is required to check that landlords are not listed on the UK government’s financial sanctions list before listing your property for rent. This check will be conducted annually, regardless of any prior checks. If a match is found, we are legally required to freeze related assets and report the breach to the Office of Financial Sanctions Implementation (OFSI), which may prevent us from proceeding with the tenancy.

2.6        That the Property is fit to be let, compliant with all statutory requirements, safe to be let and all appliances and goods are in full working order, serviced and have safety instructions for use.

2.7   If the Landlord intends to let individual rooms within the Property as a House in Multiple Occupation (HMO), the Landlord is legally required to have a Fire Risk Assessment (FRA) in place, in accordance with The Regulatory Reform (Fire Safety) Order 2005. The Landlord agrees to ensure all required fire safety measures are implemented and that monthly fire safety inspections are carried out. If the Agent arranges these inspections, the Landlord acknowledges that additional costs will apply. The Landlord further agrees to provide the Agent with a copy of the FRA before letting individual rooms and accepts responsibility for maintaining compliance to avoid enforcement action by the local authority.

2.8        That the Property will be clean prior to letting and any garden will be neat and tidy for the season.

2.9        That the Property and contents (if applicable) are adequately insured and that the insurance company is aware of, and consents to, the letting of the Property.

2.10     That where the Property is subject to a mortgage, the Landlord has consent to let the Property and that the Landlord will supply a written copy of the consent to the Agent prior to letting.

2.11     That if the Property is leasehold, the Landlord will obtain any necessary consent from the freeholder and/or the property management company for letting and supply the Agent with a copy of the lease and the lessor’s consent prior to the letting.

2.12     That the Agent or any of the employees of the Agent may sign the tenancy agreement, notices and any relevant documentation for and on behalf of the Landlord.

2.13     That the Property will be supplied with an interlinked fire alarm detection system. A carbon monoxide alarm must be installed in every room with a solid fuel burning appliance, and if this is not present, the Agent can arrange for the fitting of appropriate alarms at the Landlord’s expense. Some properties may need more than simple smoke alarms.

2.14 The Landlord will ensure that all payments for utilities and Council Tax are paid in full for any void period and remain the responsibility of the Landlord for such periods.

2.15 If the Landlord lives overseas, the Agent must account to HM Revenue and Customs for the

rental received and this can include deducting basic rate income tax. To avoid this, the Landlord must apply to HM Revenue and Customs for approval for gross rents to be paid. If such approval is not obtained, an extra 1% including VAT will be charged on the normal commission to cover the cost of the extra work involved. If any change of circumstances occur, it is the responsibility of the Landlord to notify the Agent.

 

 

  1. The Agent:

3.1        Will not, as part of the regular management of the Property, be responsible for the supervision or management of any major building work or refurbishment of the Property, unless agreed between the Landlord and the Agent in writing prior to the commencement of the project and upon terms to be agreed.

3.2        Is not liable for any loss or damage arising from the defective work, substandard repair or any other default by a contractor engaged by the Agent, unless there has been any negligent act by the Agent in relation to the selection or management of the contractor or the repair work.

3.3        Is not responsible for redirecting the Landlord’s post delivered to the Property.

3.4        Is not responsible to manage the Property when it is not let.

3.5        May delegate any of the services to be provided to the Landlord, such as inventory taking or referencing of prospective tenants, where it does not adversely prejudice the Landlord by doing so.

3.6        Is not responsible for any latent (hidden) defect in the Property.

3.7        Will not be liable for any loss or damage suffered by the Landlord via the act, negligence, and omission of any third party which may arise, otherwise than through the negligence of the Agent.

3.8        Will not attend court or any tribunal in relation to the Property as part of the regular management of the Property unless agreed between the Landlord and the Agent beforehand or unless as a matter of law the Agent is required to attend. Prices for such work are in the Scale of Charges.

3.9        Will notify the Landlord of any notices the Agent receives in relation to the Property.

3.10     May, at their discretion, prepare and serve legal notices required relating to the letting, subject to the level of service requested.

3.11 Where necessary, the agent will instruct works on behalf of the landlord in accordance with the terms outlined in this agreement, however, the agent will not be responsible for the payment of any invoices or any interest incurred due to late payment of the contractor’s invoice. The agent will deduct contractors’ invoices directly from the rent received unless otherwise agreed. If any due rents fall outside of the payment terms of the contractor’s invoice, it is the responsibility of the landlord to arrange payment directly to the contractor

 

  1. Financial matters:

4.1        The Landlord will compensate and reimburse the Agent for all costs and expenses, penalties, claims or liabilities incurred or imposed upon the Agent including anything awarded by a court in connection with the management of the Property under this agreement, unless the loss or liability arises through negligence or breach of contract.

4.2        The Landlord will pay to the Agent fees, commission and expenses appropriate to the level of service required by the Landlord as set out on the attached Scale of Charges or any revision of the Scale of Charges notified to the Landlord in accordance with this agreement.

4.3        The Agent will pay for repairs out of rent money held and where the monies held are insufficient to cover the cost of a repair the Landlord will pay the Agent any shortfall upon demand.

4.4        The Agent will negotiate the level of rent to be charged in consultation with the Landlord and may review the rent from time to time as the tenancy agreement, law and rental market permits.

4.5        The Agent shall be entitled to retain interest earned on any money held on the Landlord’s behalf and any commission or referral fees from but not limited to insurance companies, referencing companies, utility companies, contractors and any fees charged to tenants earned while acting on the Landlord’s behalf in accordance with the Scale of Charges below. Details of such income received by the Agent can be provided to the Landlord on request.

4.6        The Landlord and the Agent will comply with all requirements of HM Revenue and Customs.

4.7        The Agent will, if required, supply duplicate rental statements and annual statements and the Landlord will pay the additional cost as set out on the Scale of Charges.

4.8        Where the Tenant is in receipt of benefits, the Landlord will pay (refund to the Agent) and indemnify (compensate the Agent) the Agent for any requirement to refund benefits.

4.9        Where there is a claim on the Landlord’s insurance, the Agent will, as far as the law permits, assist with the claim where necessary and the Landlord will pay the Agent’s fees for this service in accordance with the Scale of Charges.

4.10     The Landlord will pay and reimburse (refund to the Agent) the Agent for all costs incurred by the Agent, howsoever arising or incurred by the Agent, in order to keep the Property compliant with the law.

4.11     If a holding deposit, as permitted by the Renting Homes (Fees etc.) (Wales) Act 2019, is held by the agent then, in circumstances detailed in Schedule 2 of the Act, the holding deposit may be retained. These funds will firstly be used to reimburse the Agent’s costs and expenses and then any surplus will be applied to lost rent.

4.12     The tenancy deposit will be processed in accordance with the requirements of the Housing Act 2004 and deposit protection.

4.12.1 The Agent will choose a suitable scheme and comply with the initial requirements of that scheme.

4.12.2 If the deposit is to be held by the Agent it will be held in the Agent’s client account until the Tenant has vacated and the move out inspection is concluded.

4.12.3 Deposit monies shall be paid out upon agreement between the Landlord and the Tenant, the decision of an adjudicator or an order of the court.

4.12.4 The Agent will try and assist in resolving any dispute.

4.12.5 During a dispute, the liability to pay for cleaning, repairs etc. will remain with the landlord. Any award made to the landlord post-adjudication will be paid over once received. It is the responsibility of the landlord to ensure that the relevant contractor is paid in accordance with the terms outlined on the invoice.

4.12.6 If the deposit is required to be protected by the Housing Act 2004 then the Agent will have to pay the deposit into the scheme once a formal dispute is raised with the scheme.

4.12.7 If the deposit is not required to be protected under the Housing Act 2004 then the Agent will retain the deposit during negotiations on the refund pending agreement or a court order.

4.12.8 For avoidance of doubt the Agent will hold the deposit as Stakeholder and will be entitled to retain any interest earned on the deposit.

4.12.9 The deposit will first be used to pay outstanding rent and then any other damages.

4.13                    The Agent may take any money owed to it by the Landlord from any money they hold for or on behalf of the Landlord for any of their properties.

4.14.    The following provisions are intended to apply to the agreement between the Letting Agent and               the Landlord (“the Agreement”) and the provisions set out herein shall have effect as if set out in full in the body of the Agreement.

 

Where there is a conflict between the provisions of the Agreement and the following provisions, the following provisions shall take precedent.

As an alternative to taking a deposit from a tenant, we may offer the deposit alternative product    from Reposit. Where that is the case and the tenant opts for Reposit’s product, the following shall           apply:

  1. Any clauses relating to Deposit or Prescribed Information within our original agreement should be disregarded. All other provisions of the Agreement shall remain in full force and effect.
  2. No security deposit shall be taken from any prospective tenant of the Property and in its place, you will have the benefit of Reposits services which include: the notification and collection of end of tenancy charges, dispute resolution and insurance cover up to the value of 8 week’s rent or £5,000, whichever is less. It is important to note that whilst you, the landlord, will be covered by the Reposit product and paid by them, the tenant remains fully liable for all dilapidations and rent arrears. Thus Reposit will continue to pursue the tenant for any valid end of tenancy charges even if you have already been repaid by Reposit.
  3. We will both be bound by the terms and conditions set out in the Reposit Supplier Agreement.

You agree we may receive a commission from Reposit in relation to any sums paid to it by a prospective tenant.

 

 

 

4.15     Nicholas Humphreys Estate Agents will sometimes refer buyers to East Cheshire Mortgages and The Mortgage Advisor for mortgage services. It is your decision as to whether or not you choose to deal with these mortgage brokers. Should you decide to use the conveyancers named above, you should know that Nicholas Humphreys Estate Agents would receive a referral fee of £250 from them, for recommending you to them.

4.16     Where we are requested to order furniture on your behalf, you agree that some companies such as Loft Interiors pay a referral fee of up to 10% of the total order to Nicholas Humphreys.

4.17     Nicholas Humphreys Estate Agents will receive a referral fee of up to 20% for any Landlords that are referred to and use Let Alliance for Landlords building insurance.

4.18     Where a tenant is referred to a utility company, Nicholas Humphreys may receive a commission of up to £35 per tenant. Where a tenant opts for a student specific utility package managed by Nicholas Humphreys, we may receive commissions from a third party of up to £113 per tenant.

 

  1. Notices

5.1 Either party by way of six months’ written notice may terminate this agreement. A placement fee equivalent of one month’s rent (minimum fee £600 inc VAT) 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 entered into on the Landlords behalf is a binding legal agreement for the term agreed. Details of any tenancy agreement being entered into will be communicated onto 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 if the case of a fixed term tenancy which is due to expire.

5.2. Please note the Agent will not be able to transfer the deposit without the written agreement of the Landlord and the Tenant.

5.3 Notice can be emailed, posted first class, recorded delivery, or hand delivered to the Agent’s office for notices to the Agent or the last known address of the Landlord for notices to the Landlord. Notice must be sent to a director in the case of the Agency or the legal owner in the case of the Landlord.

 

  1. Various

6.1        Any variation to this agreement must be agreed in writing between the parties. At least one month’s notification will be provided.

6.2        The Contracts (Rights of Third Parties) Act 1999 will not apply to this agreement.

6.3        This agreement will form the basis for the Agent managing any other properties for the Landlord at whichever level of service the Landlord chooses for each property.

6.4        This agreement will continue until ended in accordance with clause 5.

6.5        If the business of the Agent is transferred to another entity or body then this agreement with the Landlord can be assigned to that new entity or body and both the Landlord and the new owner of the business will have the same rights and responsibilities as under this agreement.

 

  1. Data Protection

7.1 The Agent is a franchisee of White Kite Ltd T/a Nicholas Humphreys. As such, White Kite Ltd T/a Nicholas Humphreys is a data controller and a data processor.

7.2 The Agent is a data controller and a data processor in their own right and is required to pay a fee to the Information Commissioner’s Office (ICO) and the details will be placed on the register.

7.3  The Agent will process the Landlord’s personal data in accordance with the Privacy Notice which               can be found at https://www.nicholashumphreys.com/privacy-policy/ If you cannot access on line       please ask the office for a copy to be given to you.

7.4 The Landlord will also be a controller in respect of tenant and other personal data and should be registered with the ICO and process all data in accordance with the General Data Protection Regulations.

 

 

  1. Redress and Client Money Protection

8.1 Letting Agents are required to be a member of a redress scheme. We belong to the following property redress scheme The Property Ombudsman and you can seek redress by writing to the scheme at:

Address: The Property Ombudsman Ltd, Milford House, 43-55 Milford Street, Salisbury, Wiltshire, SP1 2BP

Telephone no: 01722 333306

Website: www.tpos.co.uk

Email: admin@tpos.co.uk

 

8.2 Before a complaint can be escalated to the redress scheme, clients are initially required to go through our complaint’s procedure, a copy of which is available upon request.

 

8.3 Letting agents are required to have Client Money Protection. Please refer to our website for details of our provider. A copy of our Client Money Protection Certificate is available upon request or on our website.