Enfields is a trading name used by Embley Management Ltd, Company Number 14847604, with registered office at 347 Shirley Road, Southampton, Hampshire, England, SO15 3JD. Enfields will act as Letting Agent for the property above in accordance with the Estate Agency Act 1979 and on the terms set out on the reverse. By agreeing to these terms, you are entering into a contract with Embley Management Ltd, referred to as Enfields throughout this agreement.
EXPLANATION OF TERMS
1. Letting and Full Management Service:
The fee for this service will be 10% + VAT of the total negotiated rent for the initial tenancy and any subsequent extension to that tenancy, whether or not the extension has been negotiated by Enfields. The total fee for this service will be collected monthly from the rent received. Our administration set up fee of 2 weeks' rent + VAT (a minimum charge of £400 plus VAT applies) is payable on signing the Tenancy Agreement and will be deducted from your first initial rent. This cost will cover: Advertising, drafting of Tenancy Agreement and associated documents.
MANAGEMENT FEES:
INVENTORY COSTS (£10 EXTRA FOR FURNISHED)
• 1 bed - £110.00 + VAT
• 2 bed - £120.00 + VAT
• 3 bed - £130.00 + VAT
• 4 bed - £140.00 + VAT
LETTING AND FULL MANAGEMENT SERVICE
I/We hereby appoint Enfields as my/our Agent to undertake all subsequent management of the above property for the duration of the tenancy on the terms and conditions or agency attached hereto. To receive rents and to account to Landlord/s after deductions of outgoings and management expenses. I/We authorise you to pay from the monies received the following items: Maintenance repairs at your absolute discretion up to £200.00 + VAT on any one item of repair without prior reference to me/us, funds permitting. Any necessary expenditure consistent with good estate management in instances where, due to lack of time or unusual circumstances, it has been unreasonable or impracticable to obtain prior instructions.
2. Letting and Rent Collection Service:
The fee for this service will be 8% + VAT of the total negotiated rent for the initial tenancy and any subsequent extension to that tenancy, whether or not the extension has been negotiated by Enfields. Fees can be paid either in full at the outset of the tenancy and any extension thereof or will be deducted monthly from rent received. Our Administration set up fee of 2 weeks' rent + VAT (a minimum charge of £400 plus VAT applies) is payable on signing of Tenancy Agreement and will be deducted from your first initial rent payment. This cost will cover: Advertising, drafting of Tenancy Agreement.
MANAGEMENT FEES:
INVENTORY COSTS (£10 EXTRA FOR FURNISHED)
• 1 bed - £110.00 + VAT
• 2 bed - £120.00 + VAT
• 3 bed - £130.00 + VAT
• 4 bed - £140.00 + VAT
LETTING AND RENT COLLECTION SERVICE
I/We hereby appoint Enfields as my/our Agent to undertake all subsequent management of the above property for the duration of the tenancy on the terms and conditions of agency attached hereto. Rental collection includes marketing the property, tenant selection, negotiation or rental and the terms of the tenancy. As additional options you may choose to have our Inventory Preparation. The costs of these options are charged separately. For details please read the relevant sections. Deposits will be held by the Landlord strictly in accordance with our Terms of Business as stated under the Requirements and formalities. We will not be held liable or take part in any negotiations on damages and will only release the deposit in accordance with the terms stipulated therein.
3. TENANT FIND ONLY SERVICE
This is a tenant finding service only, suitable for professional landlords who are experienced in managing their own properties and are conversant with the Housing Act 1988 (as amended 1996), Landlord & Tenant Act 1985 (as amended 1988), and Gas, Electric and Fire Regulations etc., to protect their investment. If you are in any doubt as to your statutory obligations, you are strongly advised to seek advice from a solicitor or Housing Advice Centre. By signing this document you confirm you are fully aware of and well informed in all the relevant legislations mentioned above and accept full responsibility for arranging gas safety checks and providing a report to the tenant and a copy to Enfields, at the appropriate time. As additional options, you may choose to have our Inventory Preparation, Check-in and Checkout formalities, Tax Services and Insurance. The Costs of these options are charged separately. For details, please read the relevant sections. Deposits will be held strictly in accordance with our Terms of Business as stated under requirements and formalities. However, we will not be held liable or take part in any negotiations on damages and will only release the deposit in accordance with the terms stipulated therein. Upon completion of the Tenancy Agreement, we will collect the first rental payment from which we will deduct our fees and account to you for the balance.
INVENTORY COSTS (£10 EXTRA FOR FURNISHED)
• 1 bed - £110.00 + VAT
• 2 bed - £120.00 + VAT
• 3 bed - £130.00 + VAT
• 4 bed - £140.00 + VAT
EXPLANATION OF TERMS
TRANSFER OF RENTS
Our aim is to automatically transfer any rents received, to your bank within 3-5 working days if possible. We must, of course, have cleared funds in our account and the landlord must be entitled to rent in accordance with the rent due date specified in the Tenancy Agreement.
COMMISSIONS AND INTEREST
Where Enfields arranges any external services or insurance covers we may earn commission. Money held by Enfields will be held in our client account and any interest applied to such monies will remain the exclusive property of Enfields and the Landlord agrees to forego any right to interest to which they are or may be entitled.
TENANTS' INFRINGEMENTS
If you have selected our Rent Collection OR Full Management Service and the tenant falls behind with the rent, we will automatically adopt our arrears procedure and if we become aware of any other breaches of the Tenancy Agreement, you will be informed accordingly. If it becomes necessary to take legal action, you will be responsible for instructing and for all your solicitor fees arising. If we are required to attend court on your behalf, there will be a charge of £150.00 per day or part thereof plus VAT at the prevailing rate.
DEPOSIT PROTECTION SERVICE
If we are instructed by you to hold the deposit (Fully Managed Service Only), we shall do so under the Terms of the Tenancy Deposit Scheme. If you decide to hold the deposit yourself, we will transfer it to you within 5 working days of receiving it and upon receiving written confirmation of your registration with your chosen Tenancy Deposit Scheme. You will be required to register the deposit within 30 days of tenancy start date. If you fail to do so, the Tenant can take legal action against you in the county court and the Judge might make an order requiring you to pay compensation to the tenant of an amount equal to three times the deposit amount. You will also be unable to serve a Section 21 notice on your tenant until compliance with conditions of the court order.
We, as Agent, have no liability for any loss suffered if you fail to comply.
INVENTORIES AND SCHEDULE OF CONDITION
Professionally prepared – includes a Schedule of Condition. Experienced Inventory Clerks attend to prepare reports. This service is strongly recommended and unless otherwise instructed we will make the necessary arrangements for this highly specialised service to compile the Inventory.
AT THE END OF THE TENANCY
Where the Property is Managed by Enfields and the Deposit is protected within Enfields designated Tenancy Deposit Scheme, upon written confirmation from the Landlord, we will notify the Tenant in writing of any deductions to be made from the Deposit. At the end of the Tenancy, we shall return the Deposit to the Tenant(s) if there are no deductions. Subject to any deductions, if there is no dispute, we will keep any amounts agreed where the expenditure has been incurred by the Landlord. Payment of the deposit will be arranged within 10 days of written consent from both parties. If, after 10 days following notification of a dispute to us, and reasonable attempt has been made in that time to resolve any difference in opinion, there remains an unresolved dispute between the Landlord and the Tenant over the allocation of the deposit (and subject to Agreement from all parties) be submitted to Alternative Dispute Resolution (ADR) for adjudication of designated tenancy deposit scheme. ADR service is free of charge and their decision is binding and final and cannot be appealed against. It is not compulsory for the parties to use ADR service, and in cases where either party disagrees to use Alternative Dispute Resolution Service, the decision may need to be sought via court. However, this process takes longer and may incur further costs. If the amount of monies that the Landlord or the Agent is entitled to deduct from the Deposit exceeds the amount held as the Deposit, the Landlord or the Agent may require the Tenant to pay that additional sum to the Landlord within 14 days of the Tenant receiving that request in writing. Should Tenant fail to make the Payment or fail to propose an acceptable payment plan, the Landlord may start court proceedings to recover any balances due The inventory does not cover lofts or appliance testing.
REPAIRS – FULL MANAGEMENT SERVICE
Periodic inspections to monitor the performance of the Tenant in respect of their contractual obligations. Allow tenants to communicate “on site” should they have special requests or queries. A report can be sent with any comments with regard to any recommendations for action required.
*Please note that these inspections should not be relied upon to report any structural defects. Should the Landlord require for Enfields to provide a structural report, a survey can be arranged at an additional cost.
PAYMENT OF OUTGOINGS
We will arrange for any property bills (with exception to mortgage) on your behalf and account to you on our rental statement. We reserve the right to be entitled to accept and pay bills on your behalf that appear to be correct. We are unable to make a payment of any outgoings from Enfields’ funds; therefore, we require sufficient funds to be available at all times.
END OF TENANCY
Where Enfields manages your Property, we will endeavour to assist you in recovering costs for any damages. However, as part of Tenancy Deposit Scheme, we will require consent from both parties before we can proceed with deposit repayment. If you are returning to the Property, we will help you to arrange for all utilities to be transferred to your name.
REFURBISHMENTS/INSURANCE CLAIMS
We can provide a comprehensive service from installation of new bathroom and kitchen to redecoration, soft furnishings and carpets. To enable us to supply detailed estimates, we would require a deposit of £150.00, which would be deducted from our fees should you proceed with works. The Deposit is non-refundable if the Landlord decides not to proceed after Enfields has provided complete estimates in accordance with your specifications. The funding for any such works is required prior to contractors being instructed. Similarly, we are able to assist with insurance claims while the Property is tenanted. Our fee for both services is 15% + VAT of the net cost of the works.
INCORRECT INFORMATION
The Landlord warrants that all the information he/she has provided to us is correct to the best of their knowledge and belief and in the event that it proves to be incorrect which causes Enfields to suffer loss or causes legal proceedings to be taken, the Landlord agrees to reimburse, compensate and indemnify Enfields for all losses suffered. The statutory rights of either Landlord or Tenant to take legal action against the other remains unaffected.
EXPLANATION OF TERMS
REQUIREMENTS AND FORMALITIES
In the above Act. The penalties associated with not having applied for a license could attract a fine of up to £20,000. Therefore, if you believe the legislation applies, it is essential you contact your local authority to register the property. By signing overleaf, you are accepting full responsibility for ensuring your property fully complies with the licensing regulations.
a) Consent to let
If you have a mortgage, you must obtain a letter of consent from your mortgage lender. If your interest in the property is leasehold, your lease may require you to obtain written consent from your landlord prior to sub-letting.
b) To Let Boards
At our discretion we will erect a “To Let / Let it” board unless otherwise instructed.
c) Insurance
It is essential that you notify your insurance company of your intention to let so they may advise you of any additional cover that may be necessary.
d) Change of Ownership
If during the first twelve months of the tenancy, if the property is sold or passed on with the benefit of the tenant in occupation, Enfields will look to the original landlord of the property for the minimum fee for finding a tenant, £400.00 + VAT or 10% of the rent at the time of the sale, for six months, whichever is the smaller. These fees don’t apply if the new landlord signs our Terms of Business.
e) Selling to the Tenant
In the event that a tenant, or any person granted the benefit of the tenancy i.e. an occupant introduced to you by Enfields, purchases the property which he/she is renting or had been renting within the previous six months, where Enfields have been involved in negotiations in the sale of the property, we will charge a commission of 1.5% of the negotiated purchase price. The fee is payable upon completion or on exchange of contracts if completion is more than 6 months later. All fees are subject to VAT at the prevailing rate.
f) Furniture & Furnishings Safety Regulations
Landlords need to comply with the Furniture and Furnishings (Fire Safety Amendment) Regulations 1993, which sets levels of fire resistance for domestic upholstered furniture and furnishings. Any furniture within any part of the property must comply. It is an offence to breach these regulations and we suggest you obtain a comprehensive guide, including details of label indicating compliance, from your local Trading Standards Office.
g) Gas Safety Regulations
The Gas Safety (installation and use) Regulations 1998 apply to all domestic properties and compel landlords to have all gas equipment safety-checked annually by qualified persons, to keep records of work carried out on the appliances, and to obtain a Gas Safety Report (GSR). The GSR must be available for a tenant at the commencement of a tenancy. Enfields reserves the right to obtain a GSR for any property prior to the commencement of a tenancy, or on renewal, at the landlord’s expense, where a GSR is not supplied by the landlord in time. By signing below you are accepting full responsibility for ensuring that your property and contents comply fully with these regulations.
h) Electrical Safety Regulations
A new part of the Building Regulations, Part P Electrical Safety came into force on 1st January 2005, which requires electrical works to be carried out by a qualified/competent electrician. Implementation of the Housing Act 2004 has taken Part P Electrical Safety of the Building Regulations stage further and it is believed that to avoid prosecution should a tenant sustain injury, all properties to be let require a Portable Appliance Test (PAT) and a Fixed Wiring Test (FWT). Enfields reserves the right to obtain both a PAT and FWT for any property prior to the commencement of a tenancy, or on renewal, at the landlord’s expense, where these are not supplied by the landlord in time.
Further details may be obtained from the local branch. By signing below you are accepting full responsibility for ensuring that your property and contents comply fully with these regulations.
i) House in Multiple Occupation (HMO’s) and Housing Health & Safety Rating Scheme (HHSRS)
The above new legislation, which came into force on 6th April 2006, will classify a property as a HMO requiring mandatory licensing where it is part of a building which is 3 or more storeys and is occupied by 5 or more people who form 2 or more households sharing basic amenities. The legislation is complex and individual authorities have the power to set prescribed licensing in addition to the mandatory licensing as set out www.enfields-southampton.co.uk
j) Executing the Tenancy Agreement
Enfields sign all tenancy agreements on behalf of the landlord under a fully managed service. Therefore, it is important that we are given clear and written instructions regarding the length of time the property will be available for letting and that we have a registered contact address, telephone or email address in order that the document can be forwarded for signature, prior to any tenancy. Any subsequent change of address or bank details must be confirmed in writing. Extensions to agreements and any addenda will be charged at £50.00+vat to each party. If Enfields is required to serve a Notice of Possession on your tenant, there will be a minimum charge of £100.00+vat for the Rent Collection or Tenant find Service, this is however included within Fully Managed.
k) Inventories
Costs of compiling and checking the inventory will vary according to the size of the property, level of furnishing and time required to undertake this service. As landlord, it is usual for you to be responsible for the preparation of the inventory and Schedule the Condition and ‘check-out’. The tenant will be responsible for the ‘check-in’. Fees will be subject to VAT at the prevailing rate and are non-refundable after the service has been completed. We will not accept any responsibility should the landlords prefer to carry out their own inventory formalities.
l) Preparation of a Property
Enfields reserve the right to charge an administration fee in addition to any contractors costs for arranging any of the following in readiness for a let
• Refuse collection / clearance
• Shopping
• Moving furniture
• Any other works
m) Repairs
In the majority of cases we are happy to use the landlords own contractors. However, we reserve the right to instruct our own contractors in the case of an emergency or if the landlord’s contractor is unable to undertake the work necessary within a reasonable length of time. Landlords agree to be liable for all contractors’ invoices where instructed in accordance with these Terms of Business. Should Enfields notify the landlord that they should be required to carry out repairs or refurbishments and a dispute arises, Enfields, the landlord and the chosen contractor(s) will be bound by the Adjudication Rules of the Housing Grants, Construction & Regeneration Act 1996 unless a JCT Minor Works contract is implemented.
n) Deposits
In accordance with the Housing Act 2004 and the Tenancy Deposit Scheme we hold the tenant’s deposit as ‘stakeholders’ and it will not be released until both parties have agreed, in writing, how it should be appointed. Any interest will be paid to Enfields.
o) Finance Act 1996
The Self-Assessment system applies to all tax payers whether a UK or overseas resident. Landlords residing overseas may apply to the Inland Revenue for an approval number which authorises Enfields to pay rent without the deduction of tax. However, where no approval number is available we are legally bound to deduct tax at the basic rate. If a tenant pays rent directly to a landlord who resides overseas, the tenant becomes responsible and can withhold the tax. Where Enfields are required to remit tax due quarterly to the Inland Revenue which attracts an administration charge of £50.00+vat per quarter. In addition, all approved / no approval overseas landlords will be charged a nominal annual fee of £75.00+vat for the provision of the Gross Annual Income Report to the Inland Revenue. Similarly, should the Inland Revenue exercise their powers and request information on UK landlords, the same fee will be levied. Landlords residing in the UK are responsible for their own tax affairs. Neither the Inland Revenue nor Enfields will pay interest on monies held for the payment of tax liabilities arising from this contract.
p) Water Act 2003
The Water Act allows tenants renting a property for longer than six months to apply for a water meter without permission from a landlord.
q) Empty Properties
Our Fully Managed Service does not include the supervision of empty properties whether it is empty prior to a tenant taking occupation, between tenancies or after a tenant has vacated a property. Once a property is untenanted, we cannot pay bills on your behalf or instruct contractors unless part of a refurbishment programme or subject to our Vacant Property Service.
r) Service to Purchasers
We are legally obliged to inform you that this Company or any associated Company may offer the following services to potential purchasers of your property. Estate Agent Services, Mortgage and Financial Services: Arrangement of house contents and general insurance; Survey and Valuation Services; Chattel Auctions and Conveyance Services.
VACANT PROPERTY SERVICE
The Vacant Property Service is a flexible service of regular visits to your property at agreed intervals to give you peace of mind. It is designed for the empty period between lettings, while a property is on the market for sale or to cover any period that the property is empty for any other reason.
a) Visits
We will visit the property at agreed intervals to ensure that there are no obvious defects or irregularities. These visits should not be relied upon to pick up any structural defects; they consist of a walk through, which does not include lofts. The cost for these visits will be agreed with Enfields.
b) Reports
Following each visit we will submit a brief report to you highlighting any irregularities, defects or problems, notwithstanding the above.
c) Insurance
It is essential that you notify your insurance company of your intention to leave your property empty. They will advise you of any additional cover that may be necessary.
FEE CHARGES
If a tenancy continues for more than one year Enfields reserves the right to increase the quoted fee by no more than 1%. Should a landlord wish to change from the Full Management Service it will be subject to the agreement of the tenant and cannot be undertaken until the end of the existing fixed terms tenancy. This will allow a tenant the opportunity to find alternative accommodation if they are reluctant to liaise directly with a landlord. Two months prior notice must always be provided. Each time the tenant decides to renew the tenancy there will be an administration fee payable by you of £75.00+vat.
TERMINATION OF CONTRACT
Six months written notice must be given if for any reason either party, Landlord or Agent, should wish to terminate this contract or if the Landlord wishes to terminate prior to the 6 months notice then a fee of £500.00+vat will be applicable.
GENERAL
Fees and commission become payable where a tenant is introduced by Enfields whether or not the landlord proceeds with Enfields as agent. The fees are confirmed on the appropriate Acceptance form and will be payable by the landlord to Enfields. There is a minimum fee of £250.00+vat for any Tenant Find and should the landlord withdraw from a prospective tenancy where satisfactory references have been sought and legal documents prepared, the minimum fee will become payable.
INDEMNITY / RATIFICATION
The owner undertakes to ratify whatsoever Enfields shall lawfully and reasonably do by virtue of this Agreement and to indemnify them against all cost and expenses properly incurred by them in carrying out their duties and all other act pursuant hereto including legal expenses. All fees are subject to VAT at the prevailing rate.
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