The following words and phrases shall the meaning set opposite them:
|P2M Properties||P2M Properties
Amba House, 15 College Road, Harrow, HA1 1BA
Tel 020 8427 5392 Fax 020 8427 5500
|Letting||Letting of the Property under a Tenancy Agreement for any renewal or extension thereof or of the Tenant's right to occupy the Property|
|Person||Includes individuals, partnerships and bodies corporate or unincorporated.|
|Tenancy Agreement||The Agreement (whether or not in a form supplied by P2M Properties or the Landlord or His Solicitors) for the letting of the Property by the Landlord of the to the Tenant.|
|The Tenant||A person introduced by P2M Properties to the Landlord, whether directly or indirectly, who enters into a Tenancy Agreement or in respect of which P2M Properties is instrumental in arranging such an agreement.|
|The Landlord||The person who lets the property and is the legal owner.|
Unless the context otherwise requires, references to one gender shall be deemed to include the other, and references to the singular shall be deemed to include the plural and vice versa. P2M Properties will hereafter be referred to as P2M Properties or The Agent as well.
Upon receipt of the Landlord's written instructions to let the Property, P2M Properties will:
- Include the details of your property on our lettings list.
- Make arrangements for prospective Tenants to view the property and accompany viewings where appropriate.
- Advertise in local, regional and national newspapers (where appropriate).
- Take internal and/or external photographs (where appropriate).
- Unless otherwise agreed with the client, erect a board at our own expense outside the property (provided this complies with local authority regulations and lease provisions).
- Where necessary circulate details of the property to relocation agents and major corporate clients (if appropriate).
- Advertise the details on our website: http://www.p2m-group.com/ and other major property portals (if appropriate).
- Arrange Insurance cover for the client, i.e. Rent Guarantee, Landlords Contents Insurance (if required the expense to be met by the Landlord).
P2M Properties currently offer three levels of service. These are detailed as follows:-
LETTING ONLY SERVICE
- Negotiate terms with prospective Tenant(s) and negotiate an acceptable rent.
- Deal with the application and taking up of references through a credit reference agency (payable by the Tenant).
- Preparation of a suitable Tenancy Agreement for the Let and arranging the signing thereof by all parties.
- Ensure compliance with statutory regulations relating to gas and electrical appliances and soft furnishings.
- Arranging for the collection of the dilapidation deposit usually equivalent to a per calendars month rent (paid by the Tenant against breakages and damages).
- Receiving of initial monies and ensuring the clearing of these monies before handing over the keys.
- Organising the signing of standing order mandates by the tenant and forwarding to tenant's bank.
- Forwarding of the deposit to an appropriate tenant deposit scheme.
- Preparing and submitting of an initial statement to the Landlord.
- Administering and agreeing extensions and renewal tenancies where appropriate.
- Serve notice upon the Tenant (only if instructed and subject to the terms under LANDLORD NOTICE)
LETTING ONLY SERVICE FEE
Upon finding a Tenant who is accepted by the Landlord, or whom the Landlord has given P2M Properties authority to accept on their behalf, and who completes a Tenancy Agreement, our commission will be charged as follows:- 8% + VAT of the total rent reserved under the terms of the agreement, and to be paid in full at the commencement of the tenancy.
Our entire fee must be settled before the start of the Tenancy or deducted from the first month's rent. If the fee exceeds the first month's rent payment, the balance will be due immediately on the commencement of the tenancy.
LETTING AND RENT PROCESSING SERVICE
As per our 'Letting Only' service plus:-
- Arranging and setting up of standing order for rental payments direct to P2M Properties.
- Administer the processing of the rent for the duration of the tenancy. (P2M Properties do not guarantee that rent will be paid by the tenant).
- Chasing of unpaid or late rent (if necessary) and the sending of arrears letters.
- Forwarding the cleared rent to the Landlord monthly, subject to agreed deductions.
- Preparing and submitting of statements monthly to the Landlord.
FULL MANAGEMENT SERVICE
As per our' Letting Only' and 'Letting and Rent Processing Service' plus:-
- Deal with maintenance issues relating to the subject property.
- Arranging running repairs up to £250 as made aware providing sufficient funds are held.
- Supervising compliance with all Landlords statutory obligations (providing sufficient funds are held in individual client's account).
FULL MANAGEMENT SERVICE FEES
As per paragraph 1 of our Letting Only Fee Service, with our commission being charged as follows:-
10% + VAT for sole agency or 12.00% for multiple agency of the total rent reserved under the terms of the agreement to be paid in full at the commencement of the tenancy, 8% letting fee taken at the commencement of the tenancy, the remainder 2% or 4% fee due in terms of management to be deducted from the monthly rent collected. If for any reason the rent is delayed the Landlord is still liable to make management fee payments on due date.
Note: We recommend you read our 'Management Agreement' form in conjunction with this service.
GENERAL TERMS OF BUSINESS
For the purpose of calculating our fees the period for which the property is let shall include any continuation/extension of the original tenancy, any further tenancy or any tenancy granted to a person introduced by or through or in any way connected with the tenant. Any premiums or consideration in lieu of rent shall be treated as rent.
Note: P2M Properties DO NOT HAVE AT ANY TIME ANY OBLIGATION TO THE LANDLORD WHILST FEES REMAIN OUTSTANDING.
The fees agreed at the outset shall apply to all renewals and continuations/extensions of the original tenancy whether or not negotiated through this office. All minimum fees will apply.
VALUED ADDED TAX
Except where otherwise stated, all our fees and any other costs or charges are subject to VAT at the standard and applicable rate.
COMMISSION AND INTEREST
P2M Properties fee's becomes payable on demand, as and when they fall due. The Company reserves the right to charge interest on any amounts outstanding more than 14 days after they are demanded. The prescribed rate of interest shall be 4% per annum above the base rate charged by Barclays Bank PLC. In the event of this clause being invoked, interest will be charged from the date upon which the fees became due.
Any interest, commissions or other income earned by P2M Properties whilst carrying out its duties as agent for the Landlord and/or Management of Property will be retained by the Company.
We will advise the correct type of tenancy agreement and negotiate the length of the tenancy and the level of rent agreed. Once all parties are in total agreement we will prepare formal documents for signature.
Should the landlord wish for his/her legal representative to provide a lease we will be happy to co-operate
Fees taken in advance are refundable pro rata in the event that a break clause is exercised under the terms of the tenancy agreement subject to our minimum fee as stated in each of our services.
RENT & DEPOSIT
The rent due at the commencement of the tenancy shall be equal to one per calendar month based upon the weekly agreed amount. The deposit shall be equal to one per calendar months rent.
The Landlord agrees to keep P2M Properties fully and effectively indemnified on demand and in respect of any claim, demand, liability, costs and/or expenses relating to the Property or outgoings in respect thereof and in respect of any costs and charges or expenses incurred by P2M Properties in relation to any claim by P2M Properties under or in relation to these terms.
Any notice to be served in connection herewith in the case of P2M Properties should be served by delivering to Amba house , 15 college Road , Harrow Middlesex , HA1 1BA or such address as it may notify to the Landlord. Any notice to be served on the Landlord shall be sent by first class post, and shall be deemed served on him/her 24 hours after posting and in proving service it shall be sufficient to prove that notice was posted in a properly addressed and stamped envelope.
It is essential to have a detailed inventory of the contents, fixture & fittings and condition of the Property.
If so instructed, we can organise on the Landlord's behalf for one to be prepared by an independent professional inventory company, the cost of which to be borne by the Landlord.
Prices are available upon request and vary according to the size of the property. It is usual practice for the Landlord to pay for the “check-in” at the commencement of the tenancy also
If the Landlord provides his own inventory or where none will be provided, P2M Properties will not be responsible under any circumstances for checking the tenants in or out of the property at the commencement or determination of the tenancy
DEPOSITS AND DILAPIDATIONS
In all cases, a Tenant will be asked to pay a minimum of one per calendar month rent as a deposit, this will be lodged withy the relevant deposit protection service.
If the Landlord is holding the deposit, it will be their own responsibility to carry out a check out and inform the tenant of any deductions required (if any).
Where P2M Properties holds the deposit (and only where a professional inventory is in place) the Landlord will immediately after receipt of the “check-out” report, advise the Agent of any deductions he/she requires to be made from the deposit in writing.
P2M Properties accepts no responsibility or liabilities for any dispute arising out of repayment of the deposit to Tenants.
If the Landlord requires notice to be served on the Tenants to terminate the Tenancy, then P2M Properties require written instructions no less than two calendar months prior to the vacation date sought, subject to a minimum term of six months.
It is the Tenant's responsibility to advise the utility companies of their occupation of the property. In order to assist the Tenant's, the Landlord must provide details of the utility companies' names and addresses to P2M Properties Where possible, the inventory clerk (if any) will note meter readings at the commencement and termination of the tenancy which will then be detailed on the relevant “check in/out” reports P2M Properties takes no responsibility for utilities. It is the Tenant's responsibility to forward copies of terminated utility accounts within 30 days of the termination date of the tenancy.
HOUSES OF MULTIPLE OCCUPATION (HMO'S)
With effect from 6th April 2006, where a tenancy is construed as a multiple occupancy tenancy, a Landlord may need to apply for a license. Properties that are three or more storeys high and have five or more occupants may be affected by the new laws. All information relating to this matter can be found at www.propertylicence.gov.uk it is the Landlord's responsibility to find out if they are affected by the new law and obtain such a licence.
CONSENT TO LETTING
If you are a Tenant or Lessee you must make certain that:
The intended letting is permitted by your lease.
The tenancy expires prior to the termination of your own lease.
The superior Landlord or Mortgagees written permission (if applicable) has been obtained prior to the commencement of the tenancy.
To avoid unnecessary delays, applications for consent should begin prior to finding a tenant.
If you are the Freeholder or Leaseholder you must make certain that:
You have your Mortgagees consent to let the Property, and if you are the lessee that your lease extends beyond the term of the proposed lease.
You have notified your insurance company and obtained agreement to extend the insurance cover and its contents to cover the change in circumstances.
If you are a joint owner, that all other joint owners are named in the tenancy agreement and confirm that you are authorised to give instructions on their behalf.
BUILDINGS AND CONTENTS INSURANCE
The Landlord must ensure that there is a valid insurance policy for Buildings and Contents for the period of the tenancy.
Note: P2M Properties offer specialist Insurance products for Landlords and Tenants-please contact us for more information.
These terms constitute to the whole agreement between P2M Properties and the Landlord in relation to the subject matter hereof save as specifically provided for herein. No amendment purportedly made to such terms shall bind P2M Properties unless in writing signed by a partner of P2M Properties
If the existing Tenant(s) extends or renews the tenancy after the first year, whether or not negotiated by P2M Properties the commission agreed at the outset of the tenancy + VAT of the total rent reserved under the terms of the extension or renewal agreement will become payable at the commencement of the extension or renewal.
The pre-stated monthly fee of 2.5% + VAT for Rent Processing and 5% + VAT for Full Management will continue to apply.
Commission will be charged In respect of renewals and extensions or new agreements where the original Tenant(s) remain in occupation or where the Tenant(s) are any persons, company or organisation associated or connected, directly or indirectly with the originals tenant(s).
If the renewal or extension is granted by any person(s), company or other organisation associated or connected directly or indirectly with the original Landlord(s) the commission shall likewise be payable. In the case where a tenancy is held over (periodic tenancy), P2M Properties will charge 6 months rent in advance. Should the tenant(s) leave before the 6 months has passed, an appropriate rebate for will be made in accordance with our standard terms and conditions.
The Commission fee is payable for any Tenant introduced to the Property by P2M Properties whether or not the tenancy is finalised by P2M Properties and the commission fee is charged as a percentage of the market value of the term granted by the tenancy agreement.
If the Landlord instructs P2M Properties to proceed with an offer verbally or otherwise and subsequently withdraws his/her instruction once references have been applied for, P2M Properties reserve the right to charge the Landlord a penalty fee equivalent to one weeks rent, subject to a minimum fee of £250.
To assist with the marketing of your property, we reserve the right to instruct certain reputable agents as sub-agents and unless we hear to the contrary we shall assume that this is acceptable to you. This will not involve the Landlord paying additional fees or commission, unless agreed and confirmed in writing in advance by the Landlord.
SALE OF PROPERTY
In the event of a party introduced ( or corporate body associated with that party) by P2M Properties subsequently purchasing the property, whether before or after entering into a Tenancy Agreement, our company will be due a commission of 2% + VAT of the negotiated purchase price.
The Commission will be payable on completion of the purchase, regardless of whether negotiations have been carried out by P2M Properties or not. Full details of our agency terms of business for the sale of the property are available upon request and will be forwarded to you at the point that interest in purchasing the property is known.
When a property is sold, transferred or otherwise dealt with, with the benefit of the tenancy, P2M Properties fee remains the responsibility of the original Landlord for the duration of the tenancy and any extensions, renewals or periods of holding over, unless the new Landlord signs our current Terms of Business. When selling or transferring your property with the benefit of the tenant, you should make all relevant parties aware of this.
PRESENTATION OF THE PROPERTY
It is the Landlord's responsibility to ensure the property is cleaned to a professional standard before Tenant(s) take occupation. If the cleaning is not, in our opinion, of a sufficient standard, P2M Properties reserve the right to instruct professional cleaners at the Landlord's expense, to clean the same and in order to meet health and safety regulations (where applicable).
All machinery whether fitted or freestanding, likewise appliances, heating/water systems should be in excellent working order and recently serviced before tenant(s) take up occupation.
Carpets, rugs, curtains, nets, blinds, duvets, bedcovers, chair covers, pillows, cushions and any other soft furnished items should be professionally cleaned where possible. Windows should be cleaned inside and out and gardens/window boxes well maintained.
Freezers must be defrosted and kettles de-scaled.
PROPERTY ATTENDANCE (NON MANAGED)
In cases where property is not under P2M Properties full management, at our discretion, a fee will be charged for attendance to any details outside the rental service. The minimum fee being, £47.00 (£40 + VAT) per hour.
SECURITY OF TENURE
P2M Properties can accept no responsibility in relation to their standard form of tenancy agreement or other agreements in respect of “security of tenure” that may be conferred on or attached to any Tenant or any other person(s) and excludes all liability in respect thereof. The Landlord should seek professional legal advice in this respect.
P2M Properties reserve the right to increase any additional charges referred to herein if the Tenancy Agreement is renewed or extended, subject to one months notice.
Where the Landlord(s) is in partnership they shall contract on behalf of all the partners thereof, both from the date hereof and from time to time in the future.
REMISSION OF MONIES TO THE LANDLORD
P2M Properties will retain from funds received such monies as they reasonably consider in their discretion to be reasonably necessary to perform their duties hereunder and will be subject thereto, remit the balance of monies held by them to the Landlord at monthly/calendar intervals. Present banking arrangements are such that it may not be necessary for rent collected to be sent to the Landlord until 10 working days after receipt. Payment at a non-UK bank account may be liable to bank charges which are the responsibility of the Landlord.
INCOME TAX LIABILITY-FOR OVERSEAS LANDLORDS
Under the terms of the Taxation of Income from Land (Non-Residents) regulations 1995 (Finance Act 1995), while a Landlord may be considered non-resident for tax purposes, he still has to pay UK tax on rents received in the UK.
P2M Properties have a legal obligation to withhold a percentage of rental monies where it is known or it is reasonably believed that the Landlords usual place of abode for six months or more in any tax year is outside the UK.
Unless the Landlord can provide an “Exemption” certificate, P2M Properties must forward such monies retained to the Inland Revenue on demand.
It is advised that Landlord's seek professional advice in this regard before entering into any formal tenancy agreement.
Note: It is now a legal requirement for all agents to submit an annual return to the Inland Revenue for all gross income received from UK property.
SECTION 48 LANDLORD AND TENANT ACT 1987
In accordance with Section 48 of the Landlord and Tenant Act 1987, the Landlord must provide an address in England or Wales where notice of Issue of Proceedings may be served upon them by the Tenant(s). Please not that the rent is not legally due to the Landlord unless this requirement of the Act is satisfied.
STATUTORY SAFETY LEGISLATION – FAILURE TO COMPLY IS A CRIMINAL OFFENCE!
Before allowing occupation to a Tenant, proof of compliance with the Landlord's Statutory Obligations and Duty of Care in respect of Gas, Electric and Furniture Safety will be required.
GAS SAFETY (INSTALLATION AND USE) REGULATIONS 1998
The Landlord must ensure that all gas appliances are serviced and maintained at least once a year and keep a record of such maintenance which must be undertaken by a CORGI registered Gas installer in order to comply with the Gas Safety (Installation and Use) Regulation 1998.
By law this report must be obtained prior to the commencement of the tenancy and a copy given to both P2M Properties and the Tenant(s).
P2M Properties will be happy to arrange for this certificate to be issued. If P2M Properties are not provided with a valid certificate prior to commencement of the tenancy, P2M Properties reserve the right to arrange for a certificate to be issued and arrange for any remedial works to be carried out at the Landlord's expense.
Under no circumstances can a Landlord or P2M Properties allow any tenant to move into a property without a valid certificate.
THE FURNITURE AND FURNISHINGS (FIRE)(SAFETY) REGULATIONS 1988 AS AMENDED BY THE FURNITURE AND FURNISHINGS (FIRE)(SAFETY) REGULATIONS 1993
The Landlord must ensure that all furniture, soft furniture, beds, mattresses, pillows, cushions or any other items which are foam filled supplied to the property meet the above regulations.
If satisfactory documented proof of compliance is not received prior to the commencement of the tenancy, P2M Properties reserves the right to remove and dispose of any items which, in their professional opinion are non-compliant and at the Landlord's expense.
The Landlord undertakes to keep P2M Properties fully and effectively indemnified in respect of any claim, demand, liability, cost, expense or prosecution which may arise by reason of the Landlord failing to comply fully with the terms of this regulation.
This to include any subsequent amendments thereto or replacement regulations, and to cooperate fully with P2M Properties in respect of a defence under section 39 Of the Crown Prosecution Act 1987 to any prosecution under section 12(1) of that Act.
SMOKE ALARMS-SMOKE DETECTION ACT 1991
It is mandatory to fit electrical mains powered smoke alarms in new residential buildings-one for each floor.
Whilst it is not a statutory requirement, P2M Properties recommend that smoke alarms are fitted or placed in every property. Battery operated units are acceptable and should be placed on all floors.
ELECTRICAL EQUIPMENT (SAFETY) REGULATIONS 1994
The Landlord warrants that the electrical installation and appliances in the property are in safe working order and where appropriate comply with the above act. These regulations require that the Landlord(s) supplying electrical equipment must ensure that items are safe and will not cause danger, and that it satisfies the above regulations.
It will soon become law for all electrical appliances, both hard wired and portable to be tested by a qualified electrician before tenant(s) can move into a property. Therefore, if you have any doubt as to the safety of your equipment you should commission a report.
If required P2M Properties can arrange for an Electrical Safety Check and/or Portable Appliance Test (PAT) to be carried out on your behalf. Quotations are available on request.
The Landlord undertakes to keep P2M Properties fully and effectively indemnified in respect of any claim, demand, liability, cost, expense or prosecution which may arise by reason of failure of the Landlord to comply fully with these regulations. It is recommended that an electrical check is carried out at least once in every three years or as recommended by a qualified electrician.
If in our opinion and from a visual inspection, the electrical installation or appliances may be faulty or not safe, P2M Properties reserves the right to prevent Tenant(s) from occupying the property until the Landlord provides written confirmation from a qualified electrician as to its overall safety.
Note: The purpose of all the above checks is to ensure appliances and installations are safe, not that they are operational.