The Full Management Service includes those items found in the Let Only Service plus the following:
The Agent will endeavour to collect rent and related payments due from The Tenant throughout the Term of the tenancy. The Agent cannot be held responsible if The Tenant fails to pay the contractual rent, unless it is due to negligence or breach of contract by The Agent. Appropriate action will be taken to seek to recover rent arrears from The Tenant. If this does not have the desired effect The Landlord will be advised to instruct solicitors who are specialists in Landlord and Tenant law to take further action. The Landlord will be responsible for the legal costs and expenses unless covered by a legal expenses protection scheme.
In the event of The Tenant going into rent arrears, The Agent will carry out the above actions and notify The Landlord of the situation for The Landlord’s The Agent will provide to The Landlord statements of all income received and expenditure incurred and pay over monies due to The Landlord at monthly intervals as agreed, provided cleared funds are received from The Tenant.
If resident outside the UK, The Landlord will provide to The Agent a copy of the approval number obtained from HM Revenue and Customs for each individual making up The Landlord, thereby allowing The Agent to release rental monies to The Landlord without the obligation to retain tax reserve monies.
If an approval number is not received and The Landlord resides outside the UK, The Landlord agrees that The Agent shall retain from rents a tax reserve equivalent to the basic rate of income tax on the rental income. This will be held in a client account and money due to HM Revenue and Customs will be paid on a quarterly basis. Providing this service will incur a charge at the Hourly Rate advised on the Scale of Charges sheet attached.
After termination of this Agreement, The Agent shall hold the tax reserve until they receive written confirmation by HM Revenue and Customs that there is no further tax liability on The Agent.
After commencement of a tenancy, The Agent reserves the right to assign the rights and or obligations under this Agreement upon giving The Landlord two months’ written notice.
The Agent will pay out of monies collected all statutory and other charges which are payable by The Landlord for The Property, provided The Landlord has arranged for all relevant invoices and demands to be sent to The Agent and sufficient funds are held for The Landlord in the client account. If insufficient funds are held and The Landlord fails to provide adequate funds The Agent cannot make a payment and will not be liable for any loss or other consequences suffered by The Landlord.
The Agent will visit The Property not less often than once every six months. Any visit is a ”walk through” of The Property to ascertain any clearly visible repairs and maintenance and to find out from The Tenant any repairs that have come to his attention. It is not a survey or check of the inventory and statement of condition. The Agent will notify The Landlord of apparent and obvious defects but does not accept responsibility for hidden or latent defects, unless it is due to The Agent’s negligence or breach of contract. If in the opinion of The Agent, the occupants are not taking proper care of The Property The Agent will inform The Tenant, copying such information to The Landlord.
To try to ensure The Landlord’s compliance with statutory and contractual obligations, The Agent will arrange, without reference to The Landlord but subject to Clause 7.6 below, to carry out the following:
Repairs under Sections 11 to 16 of The Landlord and Tenant Act 1985 which state that a landlord will keep the structure (including the drains, gutters and down pipes) and the exterior of The Property in good order and repair; keep the installation for supply of gas, electricity and water in good repair, but not appliances for making use of the supply apart from sanitary conveniences; keep the installations for supply of space heating and water heating in repair; and must carry out all repairs within a reasonable time of being notified.
Minor repairs which cost less than the limit agreed in the Property Owner’s Form
Emergency repairs, which are repairs or defects of such a nature that carry a risk of further damage to The Property, damage to adjoining property, personal injury or are a breach of The Landlord’s statutory repairing obligations if left unattended.
Other works to The Property in circumstances where because of lack of time or unusual circumstances it is not reasonably practicable to obtain prior instructions from The Landlord. In these situations, if The Landlord is not easily contactable and prior instructions cannot be obtained it will be at the discretion of The Agent, taking into account all the known facts, whether or not to get competitive quotations for these repairs and which contractor is engaged.
Spending any money necessary to keep the property compliant with the law. This could include, but is not limited to, gas safety checks, electrical safety checks, compliance with HHSRS notices etc.
The Agent will try to arrange a mutually convenient time with The Tenant for contractors attending The Property to undertake work on The Landlord’s behalf.
The Agent will pay for repairs from rent monies held. If there are insufficient funds to meet the cost of the repairs The Landlord will pay the balance to The Agent on written demand. The Agent cannot carry out repairs if The Agent holds insufficient funds, and cannot be liable for any loss suffered or any deterioration to The Property due to any delay in repair when funds are not available unless it is due to negligence or breach of contract of The Agent.
The Agent will receive notices from The Tenant on behalf of The Landlord, advise The Landlord accordingly and take appropriate action.
The Agent will negotiate and agree on the level of rent payable when the tenancy is renewed or during a periodic tenancy and serve a Section 13 Notice if relevant.
If the tenancy is an Assured Shorthold Tenancy, upon The Landlord’s written request, The Agent will serve notice on The Landlord’s behalf, including Notice under section 21 of the Housing Act 1988. The Agent will need at least 3 months’ written warning if The Landlord wishes to regain possession at the end of the fixed term; or during a periodic tenancy. The section 21 notice is required to gain possession of a property let on an Assured Shorthold Tenancy when The Tenant is not in breach of the Tenancy. If The Landlord wishes to secure repossession of The Property The Landlord must contact The Agent at the earliest opportunity to ascertain when possession may be sought. The Agent cannot be held responsible for any delay in regaining possession if The Landlord fails to give sufficient written notice of the requirement to serve The Tenant with the notice. Sometimes The Tenant will fail to comply with a notice and The Landlord will need to commence court proceedings to obtain a possession order.
The Landlord will need to employ the services of a solicitor for the service of other notices and for any court action.
At vacation of The Property, The Agent will liaise with The Tenant to agree and effect the arrangements for hand back of The Property, advising The Landlord accordingly.
The Agent will check the statement of condition and the inventory at vacation of The Property and discuss the results with The Landlord. If The Property is to be re-let The Agent will arrange, according to the provisions of this Agreement, any repairs or other works which are, in the opinion of The Agent, required to put The Property into a suitable condition for letting. Initially, the cost of repairs and other work will be payable by The Landlord, with reimbursement of any costs that are later agreed with The Tenant as payable by The Tenant for any damage at The Property.
To ensure The Agent has funds to effect prompt repairs and to resolve problems quickly at the end of the tenancy, The Landlord agrees The Agent may hold a “retention” fund from rent received at the level stated in the Scale of Charges.