MANAGED SERVICES TERMS & CONDITIONS

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MANAGED SERVICES TERMS AND CONDITIONS OF BUSINESS 2007

Between the landlord and Let & Go Ltd trading as Let & Go

1.1 Tenant Find Service

1.1.1 Advise on the presentation of the property

1.1.2 Advise on all your statutory obligations for property let in the UK, as defined in 2 below

1.1.3 Advise on the market rent for the property

1.1.4 Advertise in the local press, property portals including our own extensive website www.letandgo.co.uk

1.1.5 As soon as a suitable applicant has expressed an interest in taking the property we will complete a tenant application form and obtain a holding deposit equivalent to two weeks rent from the tenant to secure the property.

1.1.6 Instruct a credit referencing company to assess the proposed tenants suitability

1.1.7 Arrange for an inventory of the property to be prepared if instructed (refer to section 5.2 for fees)

1.1.8 Arrange an appointment for the landlord to meet the tenant(s), if desired.

1.1.9 Collect a deposit equivalent to one months rent.

1.1.10 Prepare and execute a tenancy agreement.

1.1.11 Deduct our fees from the monies paid by the tenant(s) and forward the balance to the landlord together with a detailed e-statement of account.

1.1.12 Give the tenant(s) the Landlord’s name, address and contact telephone number as a point of contact during the tenancy.

1.1.13 The landlord will be responsible for the monthly rent collection and all queries relating to the tenancy.

1.2 Rent Processing (collection) Service

Inclusive of 1.1- 1.1.12 as detailed above we will in our normal course of duties:

1.2.1 Arrange at the commencement of the tenancy to collect the rent on a monthly basis during the term tenancy.

1.2.2 As far as is reasonably practicable we will take steps to recover any rental arrears or monies owed by the tenant.

1.2.3 On receipt of cleared funds, transfer the balance to the nominated account or as instructed.

1.2.4 Prepare an e-statement of account unless otherwise instructed.

1.3 Full Management Service

Inclusive of 1.1 and 1.2 as detailed above exclusive of 1.1.12 & 1.1.13 we will in our normal course of duties:

1.3.1 Have an inventory independently prepared, where a property is considered to be heavily furnished an additional charge will be negotiated.

1.3.2 Hold on account £200 for routine and emergency repairs

1.3.3 In the event of an emergency, we will authorise expenditure in excess of this amount in order to secure the property or to prevent further damage occurring.

1.3.4 Visit the property at appropriate intervals to carry out inspections and produce an e-report for the Landlord, unless otherwise specified.

1.3.5 Maintain detailed records of all communications during the tenancy

1.3.6 Be the point of contact for the tenant(s) during the course of the tenancy and will deal with ALL tenant enquiries.

1.3.7 This service is not applicable during void periods, refer to section 1.5.

1.3.8 If requested, provide e-copies of statements to the landlord’s accountant.

1.4 Tenancy Management Service -NEW SERVICE!

A respite service available to cover extended holidays or breaks and is chargeable in advance. In our normal course of duties we will cover 1.3.2 to 1.3.7 dependent on the length of the term.

1.5 Property Watch Service

A service to assist in maintaining the security of empty properties; we will in our normal course of duties:

1.5.1 Arrange for draining down of the water system when in receipt of written instruction.

1.5.2 Visit the property twice a week to water plants, and prepare your home for your return.

1.5.3 Ensure heating is set in extreme cold weather conditions.

1.5.4 Check all windows and doors are secure

1.5.5 Collect all mail and store as instructed

2. ADDITIONAL REQUIREMENTS FOR PROPERTY LET IN THE UK

2.1 Taxation - HM REVENUE & CUSTOMS

2.1.1 Landlords residing in the U.K.

Rent received in respect of the letting UK property is subject to income tax. It is the Landlords responsibility to inform the HMRC of all income from property.

2.1.2 Non-resident landlords

Although the landlord may be outside the U.K. tax jurisdiction, unfortunately income from UK property rental is liable to tax in the U.K. HMRC can require an agent to deduct income tax from rents received and account to the HMRC for it. Non-resident landlords can apply to the HMRC to receive their rental income without deductions, they will in turn authorise the agent not to with hold income tax.

2.2 HEALTH & SAFETY

2.2.1 GAS SAFETY (Installation and Use) REGULATIONS 1998

These regulations were introduced under the jurisdiction of the Health & Safety at Work Act 1974. Landlords are required by law to ensure that all gas appliances and associated pipe work are maintained in a safe condition and inspected annually by a CORGI (Council for Registered Gas Installers) registered engineer.

A record of these safety checks must be issued to the tenant within 28 days of each annual check. As a landlord you will also be required to supply a tenant with instructions for all gas appliances provided.

2.2.2 ELECTRICAL EQUIPMENT (Safety) REGULATIONS 1994

These regulations make the supply of ‘unsafe’ electrical equipment an offence. The importance of electrical safety cannot be overstated given the potential risks of fire or electrocution. It is, therefore, essential that property is checked at regular intervals to ensure that the installation and all goods supplied are in a safe condition.

A record detailing who and when the tests were carried out should be maintained and a copy supplied to the tenant. It is strongly advisable to have the equipment checked before the start of each let and at regular intervals. It would be good practice to provide clear instructions for the use of any electrical equipment supplied.

2.2.3 Permanent Electrical Installations – Landlord and Tenant Act 1995

Under the LTA 1985, the landlord is responsible for providing safe permanent electrical installation. Although there is no statutory obligation requiring the landlord to obtain a safety certificate for the permanent electrical installation it is the only method available to guarantee that the installation is in safe working order and that it meets all current legislation. Hence it is considered best practice to have a qualified electrician check the permanent electrical installation regularly.

2.2.4 BUILDING REGULATIONS – PART “P” ELECTRICAL SAFETY IN DWELLINGS

The Landlord Tenant Act 1985 puts the onus on the landlord to ensure the electrical installation in their property is safe at the commencement of a tenancy and maintained in a safe working condition during the tenancy.

From the 1st January 2005, all domestic electric installation work (particularly in kitchens and bathrooms) must be carried out by a government approved contractor. All contractors must be able to demonstrate that they comply with British Standard Safety Requirements (BS7671). Failure to comply with these regulations is a criminal offence and could result in fines of up to £5000 and / or imprisonment.

2.2.5 THE FURNITURE & FURNISHING (Fire) (Safety) REGULATIONS 1988 (Amended 1993)

Any applicable furnishings supplied for the property must comply with the regulations and must display labels indicating that they comply with the regulations.

2.2.6 Smoke Detectors

The Building Regulations 1991 require that all properties built since June 1992 must have mains-operated interlinked smoke alarms fitted on every floor. If your property was constructed prior to this date then it is strongly recommended that under your ‘duty of care’ you should supply battery-operated smoke detectors.

3. FEE STRUCTURE

3.1 Tenant Find Service Only - A One Off Fee of £195 (+VAT)

3.1.1 Deducted from the first months rent, once cleared funds have been received, the balance of which is remitted to the landlord.

3.2 Rent Processing Service - Rent Processing All-Inclusive Fee Structure, which is inclusive of finding the tenant:

3.2.1

RENT PROCESSING

PROPERTY TYPE

MONTHLY FEES

STUDIO FLAT

£39

ONE BEDROOM

£49

TWO BEDROOM

£59

THREE BEDROOM

£69

FOUR BEDROOM

FIVE BEDROOM

£79

£89

3.2.2 Deducted from the monthly rent when cleared funds have been received, the balance of which is remitted to the landlord.

3.3 Full Management Service – Fully Managed All-Inclusive Fee Structure, which is inclusive of finding the tenant & preparing an inventory:

3.3.1

FULL MANAGEMENT

PROPERTY TYPE

MONTHLY FEES

STUDIO FLAT

£49

ONE BEDROOM

£59

TWO BEDROOM

£69

THREE BEDROOM

£79

FOUR BEDROOM

FIVE BEDROOM

£89

£99

3.3.2 Deducted from the monthly rent when cleared funds have been received, the balance of which is remitted to the landlord.

3.4 Respite Tenancy Management Service – £20/ wk (+VAT), for up to five properties

3.4.1 One off registration fee £150

3.4.2 Fees are payable in advance for the term

3.4.3 Fees for HMOs

3.5 Property Watch Service - £50/wk (+VAT) per property

3.5.1 Fees are payable in advance for the term

4. DISCOUNTS

4.1 Where we fully manage three or more properties owned by an individual landlord the following discount shall be applied:

4.1.1 For the third and every additional property a discount of 2.5% up to a maximum of 20%.

5. ADDITIONAL FEES

5.1 All additional duties over and above those outlined will be charged at £50.00 per hour or part of to include:

5.1.1 Attending Court

5.1.2 Additional inspection visits requested by the Landlord

5.1.3 Bespoke tenancy agreements

5.1.4 Management of refurbishments

5.1.5 Preparation of all additional hard copies of documentation relating to the tenancy

5.2 Inventories

5.2.1

TYPE UNFURNISHED FURNISHED

Studio Flat
£45 £55

One Bed
£55
£65

Two Bed
£65
£75

Three Bed
£75
£85

Four Bed
£95
£105

6. WARRANTIES

By accepting our terms and conditions of business the Landlord warrants that:

6.1 Leaseholder Consents

6.1.1 Where the property is leasehold the landlord is permitted by the freeholder to let the property

6.1.2 Permission of the superior landlord to let the property must be obtained in writing and a copy to be provided to Let & Go for their records.

6.1.3 That the permission to let granted by the freeholder does not expire before the proposed tenancy

6.2 Mortgage Providers Consent

6.2.1 Any necessary consent of any mortgagee and/or mortgagor to the proposed letting has been obtained in writing and a copy to be provided to Let & Go for their records.

6.3 Additional Consents

6.3.1 The Insurers of the property have been notified of the proposed letting, a copy of the permission to be provided to Let & Go for their records

6.3.2 Permission to let the property has been obtained in writing from all owners of the property, a copy to be provided to Let & Go for their records

6.3.3 Where the landlord is non resident written permission from HM Revenue & Customs to receive rental income with no tax deducted

6.4 Health & Safety

6.4.1 All furnishings situated at and incorporated within the letting of the premises comply with the requirements of THE FURNITURE & FURNISHING (Fire) (Safety) REGULATIONS 1988 (Amended 1993)

6.4.2 All gas installations and associated flues within the dwelling comply with the GAS SAFETY (Installation and Use) REGULATIONS 1998

6.4.3 All electrical installations and equipment comply with ELECTRICAL EQUIPMENT (Safety) REGULATIONS 1994

6.4.4 All smoke detectors installed at the property conform to British Standards 5446 Part 1 1990.

6.4.5 In the event that the landlord fails to supply evidence of compliance with the above Let & Go reserve the right to instruct qualified trades to carry out the appropriate tests.

6.4.6 The landlord confirms that upon instructing Let & Go as their managing agent they are giving Let & Go the authority to spend cleared funds to ensure the property complies with the Housing Health and Safety Rating System Housing Act 2006.

7. Additional Conditions of Contract

7.1 If a Landlord or his solicitor prepared the Tenancy Agreement Let & Go accept no liability in respect of security of tenure

7.2 Let & Go reserve the right to place an advertising board outside the property on instructions to act.

7.3 Either party given two months written notice can execute termination of this agreement.

7.4 Three sets of keys must be supplied of which one set will be kept in a secure location

7.5 The landlord is to provide Let & Go with funds to be held on account to ensure the property is maintained to an acceptable standard and where appropriate council tax and other utilities paid. Where Let & Go do not have cleared funds or are unable to maintain the property in good repair the landlord may expose themselves to a claim from the tenants.

7.6 Should it be necessary to obtain legal advice or action all the associated fees will be the responsibility of the landlord.

7.7 Every Landlord outside the U.K. should have an accountant or tax adviser. A letter releasing Let and Go Ltd of all tax responsibility regarding overseas Landlords must be sent by the accountant/tax adviser by the time the tenancy commences.

7.8 Let & Go will investigate all defects and faults that they notice during the course of their duties or those that the tenant notifies and where appropriate consult with the landlord.

7.9 Let & Go accept no responsibility for hidden defects or defects that have not been notified by the tenant.

7.10 Historic defects, which were known to the landlord prior to the letting, fall outside Let & Go routine management duties.   All additional work will be charged at our standard hourly rate as defined 5.1.

7.11 Let & Go will not refund fees paid in advance should the tenant cease to pay the rent for any reason.

7.12 Let & Go will not proceed with securing a tenant without written confirmation from the landlord.

7.13 Let & Go will hold all clients’ money in their account in the name of Let & Go Limited – Client Account, Barclays Bank plc, Old Corn Exchange, Market Place, Romsey SO51 8YA. Any interest accrued will be maintained by Let and Go to cover the administration charges.

7.14 When you instruct Let & Go you are granting us the right to publish the let or prospective let of the property as we decide is reasonable.

7.15 All fees are subject to VAT and where Let & Go receive the rent direct from the tenant(s), will be deducted from the monies received. Where Let & Go do not receive the rent direct from the tenant, as defined 1.4 & 1.5, fees are payable in advance for the term of employment.

7.16 You agree to indemnify and hold Let and Go Limited and its employees and agents harmless from and against all liabilities, legal fees, damages, losses, costs and other expenses in relation to any claims or actions brought against Let & Go arising out of any breach by you of these Terms and Conditions.

7.17 Please note that any variation to the foregoing terms and conditions will only be valid if agreed in writing by the Managing Director of Let & Go Limited

1.1.1	Advise on the presentation of the property

1.1.2	Advise on all your statutory obligations for property let in the UK, as defined in 2 below

1.1.3	Advise on the market rent for the property

1.1.4	Advertise in the local press, property portals including our own extensive website www.letandgo.co.uk

1.1.5	As soon as a suitable applicant has expressed an interest in taking the property we will complete a tenant application form and obtain a holding deposit equivalent to two weeks rent from the tenant to secure the property.

1.1.6	Instruct a credit referencing company to assess the proposed tenants suitability

1.1.7	Arrange for an inventory of the property to be prepared if instructed (refer to section 5.2 for fees)

1.1.8	Arrange an appointment for the landlord to meet the tenant(s), if desired.

1.1.9	Collect a deposit equivalent to one months rent.

1.1.10	Prepare and execute a tenancy agreement.

1.1.11	Deduct our fees from the monies paid by the tenant(s) and forward the balance to the landlord together with a detailed e-statement of account.

1.1.12	Give the tenant(s) the Landlord’s name, address and contact telephone number as a point of contact during the tenancy.

1.1.13	The landlord will be responsible for the monthly rent collection and all queries relating to the tenancy.

1.2.1	Arrange at the commencement of the tenancy to collect the rent on a monthly basis during the term tenancy.

1.2.2	As far as is reasonably practicable we will take steps to recover any rental arrears or monies owed by the tenant.

1.2.3	On receipt of cleared funds, transfer the balance to the nominated account or as instructed.

1.2.4	Prepare an e-statement of account unless otherwise instructed.

1.3.1	Have an inventory independently prepared, where a property is considered to be heavily furnished an additional charge will be negotiated.

1.3.2	Hold on account £200 for routine and emergency repairs

1.3.3	In the event of an emergency, we will authorise expenditure in excess of this amount in order to secure the property or to prevent further damage occurring.

1.3.4	Visit the property at appropriate intervals to carry out inspections and produce an e-report for the Landlord, unless otherwise specified.

1.3.5	Maintain detailed records of all communications during the tenancy

1.3.6	Be the point of contact for the tenant(s) during the course of the tenancy and will deal with ALL tenant enquiries.

1.3.7	This service is not applicable during void periods, refer to section 1.5.

1.3.8	If requested, provide e-copies of statements to the landlord’s accountant.

1.5.1	Arrange for draining down of the water system when in receipt of written instruction.

1.5.2	Visit the property twice a week to water plants, and prepare your home for your return.

1.5.3	Ensure heating is set in extreme cold weather conditions.

1.5.4	Check all windows and doors are secure

1.5.5	Collect all mail and store as instructed

2.1.1	Landlords residing in the U.K.

	Rent received in respect of the letting UK property is subject to income tax. It is the Landlords responsibility to inform the HMRC of all income from property.

2.1.2	Non-resident landlords

	Although the landlord may be outside the U.K. tax jurisdiction, unfortunately income from UK property rental is liable to tax in the U.K. HMRC can require an agent to deduct income tax from rents received and account to the HMRC for it. Non-resident landlords can apply to the HMRC to receive their rental income without deductions, they will in turn authorise the agent not to with hold income tax.

2.2.1	GAS SAFETY (Installation and Use) REGULATIONS 1998
	These regulations were introduced under the jurisdiction of the Health & Safety at Work Act 1974. Landlords are required by law to ensure that all gas appliances and associated pipe work are maintained in a safe condition and inspected annually by a CORGI (Council for Registered Gas Installers) registered engineer.
	A record of these safety checks must be issued to the tenant within 28 days of each annual check. As a landlord you will also be required to supply a tenant with instructions for all gas appliances provided.

2.2.2	ELECTRICAL EQUIPMENT (Safety) REGULATIONS 1994
	These regulations make the supply of ‘unsafe’ electrical equipment an offence. The importance of electrical safety cannot be overstated given the potential risks of fire or electrocution. It is, therefore, essential that property is checked at regular intervals to ensure that the installation and all goods supplied are in a safe condition.
	A record detailing who and when the tests were carried out should be maintained and a copy supplied to the tenant. It is strongly advisable to have the equipment checked before the start of each let and at regular intervals. It would be good practice to provide clear instructions for the use of any electrical equipment supplied.

2.2.3	Permanent Electrical Installations – Landlord and Tenant Act 1995
	Under the LTA 1985, the landlord is responsible for providing safe permanent electrical installation. Although there is no statutory obligation requiring the landlord to obtain a safety certificate for the permanent electrical installation it is the only method available to guarantee that the installation is in safe working order and that it meets all current legislation. Hence it is considered best practice to have a qualified electrician check the permanent electrical installation regularly.

2.2.4	BUILDING REGULATIONS – PART “P” ELECTRICAL SAFETY IN DWELLINGS
	The Landlord Tenant Act 1985 puts the onus on the landlord to ensure the electrical installation in their property is safe at the commencement of a tenancy and maintained in a safe working condition during the tenancy.
	From the 1st January 2005, all domestic electric installation work (particularly in kitchens and bathrooms) must be carried out by a government approved contractor. All contractors must be able to demonstrate that they comply with British Standard Safety Requirements (BS7671). Failure to comply with these regulations is a criminal offence and could result in fines of up to £5000 and / or imprisonment.

2.2.5	THE FURNITURE & FURNISHING (Fire) (Safety) REGULATIONS 1988 (Amended 1993)
	Any applicable furnishings supplied for the property must comply with the regulations and must display labels indicating that they comply with the regulations.

2.2.6	Smoke Detectors
	The Building Regulations 1991 require that all properties built since June 1992 must have mains-operated interlinked smoke alarms fitted on every floor. If your property was constructed prior to this date then it is strongly recommended that under your ‘duty of care’ you should supply battery-operated smoke detectors.

3.4.1	One off registration fee £150

3.4.2	Fees are payable in advance for the term

3.4.3	Fees for HMOs

5.1.1	Attending Court

5.1.2	Additional inspection visits requested by the Landlord

5.1.3	Bespoke tenancy agreements

5.1.4	Management of refurbishments

5.1.5	Preparation of all additional hard copies of documentation relating to the tenancy

6.1.1	Where the property is leasehold the landlord is permitted by the freeholder to let the property

6.1.2	Permission of the superior landlord to let the property must be obtained in writing and a copy to be provided to Let & Go for their records.

6.1.3	That the permission to let granted by the freeholder does not expire before the proposed tenancy

6.3.1	The Insurers of the property have been notified of the proposed letting, a copy of the permission to be provided to Let & Go for their records

6.3.2	Permission to let the property has been obtained in writing from all owners of the property, a copy to be provided to Let & Go for their records

6.3.3	Where the landlord is non resident written permission from HM Revenue & Customs to receive rental income with no tax deducted

6.4.1	All furnishings situated at and incorporated within the letting of the premises comply with the requirements of THE FURNITURE & FURNISHING (Fire) (Safety) REGULATIONS 1988 (Amended 1993)

6.4.2	All gas installations and associated flues within the dwelling comply with the GAS SAFETY (Installation and Use) REGULATIONS 1998

6.4.3	All electrical installations and equipment comply with ELECTRICAL EQUIPMENT (Safety) REGULATIONS 1994

6.4.4	All smoke detectors installed at the property conform to British Standards 5446 Part 1 1990.

6.4.5	In the event that the landlord fails to supply evidence of compliance with the above Let & Go reserve the right to instruct qualified trades to carry out the appropriate tests.

6.4.6	The landlord confirms that upon instructing Let & Go as their managing agent they are giving Let & Go the authority to spend cleared funds to ensure the property complies with the Housing Health and Safety Rating System Housing Act 2006.

7.1	If a Landlord or his solicitor prepared the Tenancy Agreement Let & Go accept no liability in respect of security of tenure

7.2	Let & Go reserve the right to place an advertising board outside the property on instructions to act.

7.3	Either party given two months written notice can execute termination of this agreement.

7.4	Three sets of keys must be supplied of which one set will be kept in a secure location

7.5	The landlord is to provide Let & Go with funds to be held on account to ensure the property is maintained to an acceptable standard and where appropriate council tax and other utilities paid. Where Let & Go do not have cleared funds or are unable to maintain the property in good repair the landlord may expose themselves to a claim from the tenants.

7.6	Should it be necessary to obtain legal advice or action all the associated fees will be the responsibility of the landlord.

7.7	Every Landlord outside the U.K. should have an accountant or tax adviser. A letter releasing Let and Go Ltd of all tax responsibility regarding overseas Landlords must be sent by the accountant/tax adviser by the time the tenancy commences.

7.8	Let & Go will investigate all defects and faults that they notice during the course of their duties or those that the tenant notifies and where appropriate consult with the landlord.

7.9	Let & Go accept no responsibility for hidden defects or defects that have not been notified by the tenant.

7.10	Historic defects, which were known to the landlord prior to the letting, fall outside Let & Go routine management duties. All additional work will be charged at our standard hourly rate as defined 5.1.

7.11	Let & Go will not refund fees paid in advance should the tenant cease to pay the rent for any reason.

7.12	Let & Go will not proceed with securing a tenant without written confirmation from the landlord.

7.13	Let & Go will hold all clients’ money in their account in the name of Let & Go Limited – Client Account, Barclays Bank plc, Old Corn Exchange, Market Place, Romsey SO51 8YA. Any interest accrued will be maintained by Let and Go to cover the administration charges.

7.14	When you instruct Let & Go you are granting us the right to publish the let or prospective let of the property as we decide is reasonable.

7.15	All fees are subject to VAT and where Let & Go receive the rent direct from the tenant(s), will be deducted from the monies received. Where Let & Go do not receive the rent direct from the tenant, as defined 1.4 & 1.5, fees are payable in advance for the term of employment.

7.16	You agree to indemnify and hold Let and Go Limited and its employees and agents harmless from and against all liabilities, legal fees, damages, losses, costs and other expenses in relation to any claims or actions brought against Let & Go arising out of any breach by you of these Terms and Conditions.

7.17	Please note that any variation to the foregoing terms and conditions will only be valid if agreed in writing by the Managing Director of Let & Go Limited