Management Terms and condations

 

 

TERMS OF BUSINESS

 

    The client confirms that he/she owns the above property and is entitled to affect a sub-letting.

 

     The client employs us as his/her Management Agent for the property from the commencement of the tenancy for an initial period of three years and thereafter until determined by either party giving the other six months notice in writing.

 

    We will endeavour to obtain a suitable rental value on the terms acceptable to the client.

 

     Westken Estates Ltd. is a member of Tenancy Deposit Solutions Limited, (mydeposit.co.uk). We will collect a minimum security deposit of one month rent and will register the deposit with an insurance based Deposit Protection Scheme. The deposit will be held in our segregated client account for the duration of the Tenancy (in accordance with the Housing Act 2004). The Landlord agrees to pay the cost for each deposit protection scheme purchased for the above property including any extensions of contract or change of tenancy.

 

     As and when vacancies occur we will endeavour to obtain suitable tenant/s. We may choose to employ other Letting Agents where applicable at no additional cost to the Landlord. Where we act as Letting Agents only the client should advise us immediately of a vacancy or when a change in tenancy arises.

 

     We will keep accurate records of rental receipts and expenditure and will account to the client for funds due to him/her monthly. The balance will be transferred to the Landlord within three days of it reaching our account.

 

Letting Fees:

Our letting fees are 10% plus VAT (if applicable) at the current rate and are deductible in advance from the initial rent received. The fees apply to the entire duration of the tenancy. (whether or not this agreement has been terminated beforehand):

 

Property Management Fees:

The management service includes all the provisions and terms of the lettings service in addition to those set out below. Our fee for the management service during the period of the initial tenancy agreement is 12% plus VAT. The management service fee is taken from the monthly rent received. The minimum period of our appointment to manage the property is three years. The management agreement can be terminated after this period by either party giving six month's notice to the other. On the expiry of such notice we will revert to the lettings service only.

 

     We will notify you of any rent arrears or breaches of covenant. We cannot offer you legal advice. If it is necessary to use the services of a solicitor in respect of the letting we have affected or to take legal action against the tenant/s, you will be responsible for their instruction and for all fees incurred.

Westken Estates Ltd. cannot be held liable nor do we accept liability for any rent arrears or loss of rent incurred by the client or for any breaches of covenant by the tenants/s.

      Where provided with the necessary information, such as names of suppliers and utility account numbers, Westken Estates Ltd. will notify existing service providers and the local authority of the tenant's liability (if appropriate) for payment of the services and council tax during the tenancy.The utility companies and the local authority should send the relevant forms to the new occupier(s) to be completed and signed and it remains the tenants' responsibility to ensure that a new account is opened in their name. Westken Estates Ltd. cannot be held liable if services are disconnected or are not transferred by the utility companies.

 

      Please refer to the enclosed Letting and Management Advisory Notes for Landlords, which form part of these Terms of Business.

 

All charges are subject to additional VAT (if applicable).

 

 

LETTING AND MANAGEMENT

ADVISORY NOTES FOR LANDLORDS

 

Inclusive Rents:    

Rents quoted to a tenant by us on your behalf are inclusive of Ground Rent and Service Charges (payable by the client as the Lessee where applicable) but are exclusive of Council Tax, Water Rates, Telephone, TV Licence, Gas and Electricity, which will be for the tenant/s direct billing from commencement of Tenancy.

 

Tenancy Agreement:       

We shall use our standard Assured Shorthold Tenancy Agreement or Holiday Agreement where appropriate. You are at liberty to submit our agreement to your solicitor for approval.

 

Inventories & Schedule of Condition: 

Westken Estates Ltd. can prepare an Inventory and Schedule of Condition, where instructed, upon commencement of our management and at the start of each tenancy and the Landlord agrees to pay the cost of these services. Charges vary depending on the size of the property, and the quotation of cost can be given on request. Inventories & Schedule of Condition should be signed by both parties to assist in any disputes when tenants vacate the property.

 

Rent Remittances: 

Where we, Westken Estates Ltd., are provided with UK bank details, we use an Online Fund Transfer system to make payments to your account.  Where we are required to make payments by alternative methods (Telegraphic Transfer, CHAPS or cheque) we will pass on any costs incurred in doing this. Seven working days must be allowed for rent cheques to be cleared through the banking system before transferring funds to the Landlord’s accounts.

 

Management Fees:          

Our Management fees are 12% plus VAT (if applicable) on gross rents collected (unless there is an agreement to the contrary). Management fees are payable monthly and are deducted from rents collected. Our management statements are prepared on a monthly basis and the net rental income is paid by bank transfer into the clients Bank Account (please refer to

Management Agreement for time given).

 

Our Letting fees are 10% plus VAT (if applicable) on gross rents for the period of the tenancy (unless there is an agreement to the contrary). Letting fees are payable in advance and are deductible from the first month’s rent.

 

Tax Retention:                 

Where we collect rent on behalf of overseas clients, we are obliged under UK Tax Legislation to deduct income tax at the basic rate from the net rents unless an Exemption Certificate has been issued by the Inland Revenue. We advise overseas clients to instruct accountants to handle their tax affairs in the UK.

 

Rent Arrears and Breaches of Covenant:

We will notify you of any rent arrears or breaches of covenant. We cannot offer you legal advice. If it is necessary to use the services of a solicitor in respect of the letting we have affected or to take legal action against the tenant/s, you will be responsible for their instruction and for all fees incurred. We cannot be held liable nor do we accept liability for any rent arrears or loss of rent incurred by the client or for any breaches of covenant by the tenant/s.

 

Repairs:                  

Under the Rent Act, clients are responsible for any necessary     repairs to the property and contents except those caused by tenants neglect or misuse. We strongly recommend that any outstanding works are carried out prior to the commencement of the letting. It is also advisable to clean and prepare the property prior to tenants moving in so that disputes with tenants do not arise at a later date.

 

We shall take care of the day-to-day management on your behalf including minor repairs up to a maximum of £500.00 (five hundred pounds only) per flat. Estimates are obtained for your approval in respect of works/repairs/redecoration and renewals where the likely cost would be over £500.00 (five hundred pounds only).

 

We will charge a supervisory fee of 10% plus VAT (if applicable) on the total amount of the works. Clients are advised that we reserve the right to authorise repairs in excess of £500.00 (five hundred pounds only) per/flat should an emergency arise and the client be unavailable for consent.

 

Tenancy Changes:  

If there is a change of tenancy during our management, we will take care of the cleaning and preparation of the property for the next tenant. For this service we charge an additional fee of £40.00 plus VAT and expenses.

 

Deposit:                

For all tenancies (AST, Short Let, etc). Westken Estates Ltd. will obtain and hold as a stakeholder, a deposit from the tenant against unpaid rent or bills, dilapidations and any other costs or losses incurred as a result of any breach of the terms of the tenancy agreement by the tenant.

 

The deposit will be held in accordance with the terms of the tenancy agreement.

 

Under the terms of our Assured Shorthold Tenancy Agreement, the deposit will be held by Westken Estates Ltd. in accordance with he Housing Act 2004 and the provision of the deposit protection scheme operated by Tenancy Deposit Solutions Limited (mydeposits.com). Under this scheme, undisputed deposits must be released to the tenant within ten days of termination of the tenancy. Full details of the scheme may be found at www.mydeposits.co.uk. Westken Estates Ltd. takes no responsibility for the failure of a deposit being registered where held by the landlord or an alternative appointed agent.

 

Outgoings:              

We pay on your behalf current outgoings such as Ground Rent, Service Charges, Insurance Premiums and Water Rates, Council Tax, Gas and Electricity bills where applicable. We cannot accept responsibility for the adequacy of the Insurance cover. We cannot undertake to meet any outgoings or incur any liabilities beyond cleared funds from the collected rent/s in our hands available for that purpose. We reserve the right to charge an administration fee for every letter written on the Landlords behalf to the third parties indicated above.

 

Void Period:            

We do not accept any liability for any losses of rent incurred whilst the property remains empty. In these cases we reserve the right to retain funds in the clients account to enable us to meet anticipated ongoing obligations on behalf of the client.

 

Clients Responsibilities:

It is important that any outstanding works are carried out prior to the commencement of the Letting.

 

Sub-Letting:         

Clients are advised to check that they are allowed to sublet under the terms of their Lease. Failure to do so will be the responsibility of the client.

 

Mortgagee Approval For Sub-Letting:         

If the property is mortgaged, approval of Building Society or Bank will usually be required. In most cases, consent is readily given, but it is wise to seek this consent as early as possible. An administration fee is usually payable to the Freeholder, or his Agent and the Mortgagee in these respects.

 

Insurance:              

It is vital that your property is adequately insured including all own contents. We strongly advise clients to advise property            insurers of the proposed letting at an early stage to ensure that           cover for the property is not prejudiced in any way.

 

Mail:                        

Clients are advised to notify Post Office of their new address for re-direction of any mail. We cannot accept responsibility for this.

 

Utilities:                 

Whilst we will advise Electricity, Gas, Water companies and Local Authority when new tenants take up occupation it is the clients responsibility to settle all accounts at the commencement and determination of any tenancy. Failure to do so may result in the client being held responsible for any unpaid bills and/or utilities companies then insisting on key or card meters which may prove inconvenient. Clients must always ensure that no current telephone line contract is retained at the property in his or her own name.

 

Gas Safety: In accordance to The Gas Safety (Installation & Use) Regulations 1998:

It is the Landlord’s responsibility to ensure that all gas appliances and the fixed installation are maintained in good order and

checked for safety at least every 12 months by a Gas Safe registered engineer. If Westken Estates Ltd is not provided with

a valid certificate prior to the commencement of the tenancy, we reserve the right to appoint a Gas Safe registered engineer

to inspect all gas appliances and their installations and carry out any remedial works where necessary. The cost incurred,

together with our supervisory fee, will be debited from the Landlord's account. If the tenant is remaining in occupation

beyond the expiry of the original certificate and Westken Estates Ltd. Has not received a replacement valid certificate 14

days before the expiry of that original certificate, we reserve the  right to appoint a Gas Safe registered engineer to inspect

all gas appliances and their installations and carry out  any remedial works where necessary. The cost incurred, together with

our supervisory fee, will be debited from the Landlord's account.

     Breach of the regulations is a criminal offence with the Health & Safety Executive empowered to bring proceedings. Landlords and/or managing agents can be convicted for non-compliance. The standard penalty is a £6,000 fine for each item and/or 6 months imprisonment. In the most serious cases charges of manslaughter could be brought. Insurance cover could be invalidated for non-compliance to the regulations.

 

The Electrical Equipment (Safety) Regulations 1994:

The Landlord is legally responsible for ensuring that the electrical installation and all appliances within the property are

maintained in good order and regularly checked for safety by an appropriate registered engineer.If Westken Estates Ltd.

is not provided with a valid certificate prior to the commencement of the tenancy,we reserve the right to appoint an

appropriate registered engineer to make the necessary checks and carry out any mremedial works where necessary. The cost

incurred, together with our supervisory charge will be debited from the Landlord's account. Where the tenant is remaining in

occupation beyond the expiry of the original certificate and Westken Estates Ltd. Has not received a replacement valid

certificate 14 days before the expiry of that original certificate, we reserve the right to appoint an appropriate registered

engineer to make the necessary checks and carry out any remedial works where necessary. The cost incurred, together with

our supervisory charge, will be  debited from the Landlord's account. Landlords and/or managing agents can be convicted for

non-compliance. The standard penalty is a fine of £5,000 per item not complying and/or six month's imprisonment. In the

Most serious cases charges of manslaughter could be brought. Insurance cover could be invalidated for non-compliance

to the regulations. The Tenant may also sue you for civil damages.

 

Furniture and Furnishings (Fire) (Safety) Regulations 1988 and (Amendment) 1993:

The Landlord warrants that he/she is fully aware of the terms and conditions of the above Regulations including

Any subsequent amendments or replacement Regulations (hereafter referred to as the Regulations). The Landlord Declares

that all furniture presently in the property or to be included in a property to which this agreement applies, complies in all

respects with the Regulations. The Landlord further warrants that any furniture purchased for the property after the date

of this agreement will also comply with the Regulations for the duration of the tenancy. Landlords and/or managing agents can

be convicted for non-compliance. The standard penalty is a fine of £5,000 per item not complying and/or six month's

imprisonment. In the most serious cases charges of manslaughter could be brought. Insurance cover could be invalidated for

non-compliance to the regulations. The Tenant may also sue you for civil damages.

 

Energy Performance Certificates (EPCs):

All buildings in the private rented sector require an EPC. This certificate will remain valid for ten years. Landlords are required by law to obtain and make available a copy of the EPC, free of charge, to prospective tenants at the earliest opportunity and must provide the person who takes up the tenancy with a copy.

 

Indemnity:            

The Landlord undertakes to keep Westken Estates Ltd. fully and effectively indemnified in respect of any claim, demand, liability, cost, expense or prosecution which may arise due to the failure of the landlord to comply fully with the terms of all the above Regulations, including any subsequent amendments thereto or replacement Regulations.

 

Data Protection and Privacy Policy:

Westken Estates Ltd. complies with the Data Protection Act 1998 in all our dealings with your personal data. We will keep your personal information secure. Westken Estates Ltd. will only contact you if absolutely necessary.

I/ We confirm that we have read and fully understand these Letting and Management Advisory Notes together

with Terms of Business of which they form part and authorise Westken Estates Ltd. Agents to act on my/our behalf in the letting of the property. Where appropriate I confirm that I am authorised by my co-owner to instruct the agents of Westken Estates Ltd. accordingly.

 

 

 

 

          WESTKEN ESTATES