Lettings Terms and conditions

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Lettings Terms and conditions

  • 1.0
    Lettings Service
  • 1.1
    Initial Commission
  • 1.1.1
    In the event that Morgan Randall introduces a Tenant who enters into an agreement to rent the Landlord's property, commission becomes payable to Morgan Randall ("Initial Commissions"). (See clause 1.3 regarding payment of fees.)
  • 1.1.2
    The Initial Commission fee is payable on the commencement of the tenancy.
  • 1.1.3
    The Initial Commission fee is charged as a percentage of the total rental value of the agreed term as specified in the Landlord Acceptance and tenancy agreement. The scale of Initial Commission fees charged is set out above where all Letting Service fees are payable in full and in advance of the tenancy start date and all Management Service fees are payable monthly in advance. In general, the Initial Commission will be the full Lettings Service fee and the first month’s Management Service fee.
  • 1.1.4
    The Initial Commission fee is payable for any Tenant introduced to the property by Morgan Randall, whether or not the tenancy is finalised by Morgan Randall.
  • 1.2
    Renewal Commission
  • 1.2.1
    Morgan Randall will endeavour to contact both the Landlord and Tenant before the end of the tenancy to negotiate an extension of the tenancy.
  • 1.2.2
    In the event that the Tenant renews, extends, holds-over and/or enters into an assumed, inferred, written or verbal new agreement for which rental income is received or payable, commission becomes payable to Morgan Randall ("Renewal Commission").
  • 1.2.3
    The Renewal Commission fee is charged as a percentage of the total rental value of the agreed term of the renewal, extension, hold-over or new agreement, or where the Tenant extends and/or holds-over indefinitely, commission will be payable monthly in advance. The scale of Renewal Commission fees charged is as set out above.
  • 1.2.4
    Renewal Commission will be due in respect of renewals, extensions, hold-overs and new agreements where the original Tenant or a person connected with the Tenant remains in occupation. Where there is more than one Tenant, Renewal Commission will be payable in full where any or all of them remain in occupation.
  • 1.2.6
    Renewal Commission will be due whether or not the renewal, extension, hold-over or new agreement is negotiated by Morgan Randall.
  • 1.3
    Payment and Refund of Commission
  • 1.3.1
    Where Morgan Randall collects the rent, we will deduct the commission fee as follows;- (a)we will deduct the Initial Commission fee from the first rental payment and any further rental payments where necessary of the initial tenancy agreement; and (b)we will deduct the Renewal Commission fee monthly in advance from the first rental payment and all further rental payments where necessary of any renewal, extension, hold-over or new agreement.
  • 1.3.2
    Where Morgan Randall does not collect rent for whatever reason, the lettings commission must be paid by the Landlord fully in advance of the tenancy start date in accordance with clause 1.1.2. If the fee exceeds the first rental payment, the Landlord agrees to settle the balance prior to the tenancy start date.
    By prior written arrangement, if the Landlord’s commission fee and expenses exceed the initial rent monies collected from the Tenant, the Landlord agrees to instruct the Tenants to pay all future rent payments to Morgan Randall until the remainder of the commission fees and expenses have been deducted from subsequent rental payments.
    Where Morgan Randall does not collect rent for whatever reason, the Renewal Commission fee is charged for a minimum period of 1 year up front and not monthly as per clause 1.2.3 and will be payable on or before the start date of any renewal, extension, hold-over or new agreement.
  • 1.3.3
    Morgan Randall reserves the right to demand payment in full at any point after the tenancy has been agreed. In the event of our fees not being paid by the agreed tenancy start date or when demanded, interest shall accrue on a day to day basis on the sum due at a rate of 4% above the Bank of England base rate.
  • 1.3.4
    If the Tenant terminates the tenancy agreement early without the Landlord's consent for any reason except for the Landlord breaching the terms of the tenancy agreement, a refund will be granted for the remaining period of the tenancy. This refund is also applicable where Morgan Randall is satisfied the Tenant is evicted through serving the appropriate legal notices on the grounds of rent arrears or any other tenancy breach or where (if applicable) either the Landlord or Tenant exercise a break clause as set out in the tenancy agreement.
    If the Landlord terminates or agrees with the Tenant to terminate the tenancy agreement for any other reason prior to the end of the tenancy term, no commission refund is due for the remaining period of the tenancy. The refund of commission will be calculated on a pro rata basis (i.e. the Landlord will receive a refund of fees paid equivalent to the period from when the Tenant vacates to the agreed tenancy end date). In the event that the Tenant is in rent arrears upon vacating the property, the refund will be calculated from the date the rent has been paid up to.
    In any circumstance, the Landlord is only due a refund in cases where Morgan Randall have been nominated to collect rent for the duration of the tenancy.
  • 1.3.5
    Fees are payable on any rent recovered from the Tenant or any Deposits during or after the tenancy. The Landlord agrees to recover rent before any other items or damages from the Deposit.
  • 1.3.6
    If a fee refund is granted as per clause 1.3.4, except in the case of the Tenant or Landlord exercising a break clause, the Landlord agrees to assist and allow Morgan Randall to recover this refund of fees from the remaining Tenant’s deposit after any rent arrears, damages or dilapidation deductions have been made. If there is still a remaining balance of fees to be recovered, the Landlord agrees to assist us in recovering these from the Tenant at Morgan Randall’s cost.
  • 1.3.7
    Any Credit Notes awarded can only be applied to future letting commission fees not against any third party services.
  • 1.3.8
    With exception to Clause 1.3.4., fees and expenses are independent of the rental payments and remain owing by the Landlord irrespective of when or if the rent is paid by the Tenant. If an agreement is made to deduct Commission Fees and expenses from subsequent rent payments, Morgan Randall reserves the right to demand all outstanding Commission Fees and expenses for immediate payment.
  • 1.4
    Collection of rent
  • 1.4.1
    Where applicable, Morgan Randall will collect rent in accordance to the terms of the tenancy agreement.
  • 1.4.2
    Where Morgan Randall will collect rent, we will use our best endeavors to arrange for a standing order to be set up so to facilitate payment of the Tenant’s rent to Morgan Randall. Due to the controlling restrictions of standing order payments, Morgan Randall can not guarantee the correct setup or payment of rent and take no responsibility for any losses, bank charges or delays incurred by any party as a result of late or non-payment of rent.
  • 1.4.3
    The Landlord may instruct Morgan Randall to stop collecting rent by giving 1 months notice in writing at which point all remaining fees are due in full and all future fees will be payable in advance and in accordance with clause 1.3.2.
  • 1.4.4
    Morgan Randall cannot be held responsible if the Tenant(s) fail to pay his/her contractual rent. We will however take such action in your name as is appropriate in the circumstances to recover rent arrears by means of a series of written notices. If this does not have the desired effect we will advise you to instruct specialist solicitors to take further action. In the event that Morgan Randall are appointed on a management basis in addition to written notices we will telephone the Tenants to discuss the arrears send SMS text messages and where required liaise with your appointed legal advisors to the best of our ability to assist in recovery of rent arrears.
  • 1.4.5
    It is the Landlord’s responsibility to take all necessary precautions to protect their interests, including instructing solicitors and commencing legal proceedings to preserve your rights and recover arrears of rent and to defend all actions or other legal proceedings and arbitrations that may be brought against you in connection with the premises. All costs and disbursements incurred including legal costs and disbursements will be payable by the Landlord. Where appropriate, we are able to prepare and serve formal notice to the Tenant to vacate the premises in accordance with the tenancy agreement (please see clause 1.23).
  • 1.5
    Transfer of funds to the Landlord
  • 1.5.1
    Once we are in receipt of cleared funds, we aim to transfer any money due to you within three working days.
  • 1.5.2
    In some cases it may take up to ten working days to process the payment. If we exceed this, we agree to pay you interest (at an annual rate of 4% above the Bank of England base rate) from the 11th day until the payment is made. We are not responsible for any bank or any other charges that you may incur as a result of delays in payment.
  • 1.5.3
    We transfer any money due to the Landlord via BACS. Please allow for banking system transfer times which may vary from bank to bank/building society.
  • 1.6
    Tenancy Agreement
  • 1.6.1
    You will need a comprehensive Tenancy Agreement setting out the rights and obligations of both parties. Where the Tenant is an individual you will also need to have regard to the Unfair Contract Terms Regulations and guidelines prepared by the Office of Fair Trading. We have consulted with solicitors who are specialists in this field and we can provide you with a comprehensive tenancy agreement at the cost of £199+VAT.
  • 1.6.2
    If you do not supply a tenancy agreement within 10 working days prior to the tenancy start date, we will supply one at your cost as per clause 1.6.1. The term of your tenancy can be up to a maximum of 5 years however, our standard term for a long term tenancy is 24 months. Generally, if the prospective Tenant is an individual and the net rent is less than £100,000 per year we will use an Assured Shorthold Tenancy Agreement. There is no longer a minimum period for such type of tenancy. However, if the Tenant fails to surrender possession at the expiry of the term (and in accordance with your notice to quit) you will need a possession order. No such order can expire within the first 6 months of tenancy commencing.
  • 1.6.3
    If you wish to use an agreement drafted by your own solicitor, please supply us with a draft at least 2 weeks before the tenancy is due to commence.
  • 1.6.4
    Common Law Agreement - If the net rent payable is £100,000 or more per year or at a proportionate level for a shorter tenancy, the tenancy agreement cannot be an Assured Shorthold. You will need to use a Common Law Agreement. Although this is not governed by the Housing Act 1988 it is nevertheless subject to other statutory regulation (e.g. Protection from Eviction Act 1977) which means you must obtain a possession order from the County Court before a Tenant can be evicted.
  • 1.6.5
    Company Lets - Generally speaking these involve more pre-contractual negotiation however for registered companies, the tenancy agreement used is a Common Law Agreement. There are no rent restrictions.
  • 1.7
    Identity Checks and References
  • 1.7.1
    Morgan Randall will carry out an identity check on the Tenant before we proceed with the tenancy on your behalf. If we find the identity check acceptable we will proceed with the tenancy on your behalf. When we proceed we will be doing so without any responsibility for the accuracy of those checks or the information contained within them. We will not be warranting the Tenant as suitable or be guaranteeing the tenancy in any way.
    NOTE: Whilst these may be referred to as ‘reference checks’ from time to time, they are merely to be treated as identity checks. Morgan Randall does not perform official reference or credit checks. Third party reference checks are advised for all tenancies and landlords are urged to instruct us to carry out these checks (see clause 1.7.2 below)
  • 1.7.2
    Upon written request and at an additional cost of £75+VAT per applicant, Morgan Randall will provide a full and comprehensive reference check using an independent referencing agency who will, wherever possible, perform a credit check, obtain a financial reference, a previous Landlord reference (if appropriate) and a personal reference. Various tenancy related insurances can also be offered by the referencing agency, details of which are available upon request.
  • 1.8
    Inventories and Check In/Out
  • 1.8.1
    Inventory - Morgan Randall strongly advise that you carry out an inventory and ensure that this report is updated every 5 years or after any major works at the premises.
  • 1.8.2
    Check In/Check Out - Generally, the Tenant will bear the cost of the check out at the end of the tenancy as stipulated within our tenancy agreement and the Landlord will bear the cost of the Check In. Morgan Randall strongly advises that you carry out a check in.
  • 1.8.3
    We do not offer a credit facility and generally require funds for all works in advance. Please note that in the event that the tenancy does not proceed for whatever reason, these costs (as well as any other expenditure charged to the Landlord) will remain due in full upon demand.
  • 1.9
    Utilities
  • 1.9.1
    The in-going Tenant will be instructed to notify the electricity, gas, water and telephone companies for a credit agreement and supply contract. You will need to provide these organisations with your new address and the meter readings at the commencement of the tenancy to ensure that there are no discrepancies with the change over. We also recommend that you forward the Tenant’s details.
  • 1.9.2
    Morgan Randall will not be responsible for any errors made in transferring or cancelling utilities.
  • 1.10
    Initial Monies, Rent and Deposit Collection
  • 1.10.1
    Morgan Randall requires a holding deposit before an offer is made to the Landlord. The remainder of the move in monies will be collected before the Tenants move in. If the prospective Tenant withdraws the offer Morgan Randall will retain all monies collected in respect of the Tenancy as an administration fee and in order to recover costs.
  • 1.10.2
    Unless otherwise agreed in writing or in the event that we obtain a bond agreement or security agreement from an organisation we deem reputable, we will collect 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 and at least one calendar months rent.
  • 1.10.3
    The deposit will be held in accordance with the terms of the tenancy agreement. For all non Assured Shorthold Tenancies, unless agreed otherwise and where applicable, Morgan Randall will hold the deposit as stakeholder.
  • 1.10.4
    Any interest earned on the deposit will be retained by Morgan Randall.
  • 1.10.5
    Under the terms of our Assured Shorthold Tenancy agreement, the deposit will be held in accordance with the Housing Act 2004 and the provisions of a recognised government deposit protection scheme operated by The Deposit Protection Service Ltd (trading as DPS) or similar scheme. Under this scheme, undisputed deposits must be released to the Tenant within ten days of termination of the tenancy. Morgan Randall will charge the Landlord a deposit registration fee of £49+VAT per tenancy term for all deposits registered with a deposit protection scheme.
  • 1.10.6
    Full details of the scheme may be found at www.depositprotection.com. Morgan Randall takes no responsibility for the failure of a deposit being registered where held by the Landlord or an alternative appointed agent or scheme.
  • 1.10.7.1
    Where appropriate and/or applicable, if the Landlord wishes to use his/her own scheme he/she must request this in writing and the details of this scheme must be provided at least 5 working days prior to the commencement of the tenancy. If the details of the Landlord’s designated scheme are provided later than 5 working days prior to the tenancy or during the tenancy, to protect the Landlord’s interest and to carry out our legal obligation in respect of the deposit, Morgan Randall will proceed and register the deposit as per clause 1.10.5.
  • 1.10.7.2
    It is the responsibility of the Landlord to provide the details and prescribed information of their chosen Scheme to the Tenants
  • 1.10.7.3
    Where the Landlord requests for the deposit to be transferred for his retention, consent must be obtained from the Tenant before Morgan Randall can transfer the deposit. Deposits must adhere to Housing Act 2004 and the provisions set out by a recognised government deposit protection scheme.
  • 1.10.7.4
    Morgan Randall takes no responsibility for the deposit being registered correctly whilst in the Landlord’s possession nor do we take any responsibility in returning any funds to the Tenant. It is the Landlords responsibility to ensure that the deposit is returned to the Tenant at the end of the tenancy in accordance with clauses set out in the tenancy agreement.
  • 1.10.8
    At the end of the tenancy, Morgan Randall will send a copy of the Check Out report (if applicable and when instructed to undertake one in writing) to the Landlord.
  • 1.10.9
    We require written confirmation from the Landlord as to what agreement has been reached with the Tenant in respect of any deductions from the Deposit within 10 days from the end of the tenancy after which, we reserve the right to release the deposit less our recommended deductions, if any, to the Tenant. The Landlord must also notify the Tenant directly in writing with any subsequent deductions. The Landlord will have to provide documented proof for any deductions he/she wishes to make. Please note that deposit schemes rarely approve any deductions in the absence of an official inventory and check in/out report.
  • 1.11
    Instruction of Agent
  • 1.11.1
    We will visit the premises to inspect them and provide you with an indication of the likely rental value. This value will be our assessment on what we estimate the current rental value to be in the surrounding market excluding any utility costs.
  • 1.11.2
    You must ensure that the premises are fit to be let. Appliances within the property should comply with the safety regulations detailed in clauses 1.14, 1.15, 1.16 and 1.17 of this agreement.
  • 1.11.3
    By law all machines, gas appliances and electrical goods should be in full working order, should have been recently serviced, checked for safety and have clear instructions for use. Properties should be thoroughly cleaned and gardens, if applicable, should be in good seasonal condition, details of which should be shown on the check-in report and inventory. Whilst the responsibility to comply with these legal obligations lies firmly with the Landlord, by signing this agreement, you authorise Morgan Randall to commission third party works on the Landlord’s behalf. The cost of which will be payable by the Landlord.
  • 1.11.4
    By signing this document you irrevocably instruct us to act on your behalf as your agent with your full authority to sign or execute the tenancy agreement on your behalf.
  • 1.11.5
    In order to facilitate the marketing and lettings process, Morgan Randall may have to purchase duplicates keys for the premises. The cost of which will be charged to the Landlord. Please refer to clause 3.5.
  • 1.12
    Documents
  • 1.12.1
    Morgan Randall operates an e-billing scheme. All documents will be sent to the Landlord electronically via e-mail to the address provided on this document.
  • 1.12.2
    Hard copy documents are available upon request however, we are only able to offer this service for Landlords with mainland UK correspondence addresses. International addresses can be arranged via special arrangements but the Landlord may need to pay for the cost of postage.
  • 1.13
    Overseas Landlords - Finance Act 1955
  • 1.13.1
    Under Section 42A Income and Corporation Taxes Act 1988 supported by 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 United Kingdom income tax arising from rents received in this country. Unless exemption is received from the Inland Revenue allowing the Landlord to account for tax himself under the self-assessment regime, Morgan Randall is obliged by law to deduct tax at the appropriate rate from rents received and account to the Inland Revenue for these monies on a quarterly and annual basis.
  • 1.13.2
    The Landlord is responsible for obtaining his own exemption. It should be noted that exemptions are not transferable between agents. No interest is paid to Landlords on tax retentions held by Morgan Randall. If the Landlord requires an exemption, he would need to complete either a NRL1 or NRL2 form quoting the Morgan Randall reference number 904/NA046446 along with our registered office address Unit 2 Discovery Dock East, South Quay Square, Marsh Wall, London E14 9SH. We are legally bound to deduct tax on any income until we receive an exception certificate from HMRC directly.
  • 1.13.3
    Where a Landlord is considered by Morgan Randall to be non-resident for taxation purposes and we are not in possession of a valid exemption certificate from the Inland Revenue, a charge of £300 +VAT will be made for the work carried out in submitting each quarterly and annual return and the preparation of final certificates.
  • 1.13.4
    Where a Landlord is considered by Morgan Randall to be non-resident for taxation purposes and we are in possession of a valid exemption certificate from the Inland Revenue, a charge £150+VAT will be made for the work carried out in submitting the end of year annual returns.
  • 1.14
    The Furniture and Furnishings (FIRE) (SAFETY) Regulations 1988 and The Furniture and Furnishings (FIRE) (SAFETY) (AMENDMENT) Regulations 1993
  • 1.14.1
    Since 1st March 1993 it has been a criminal offence, punishable by a fine and/or a prison term, to let premises with furniture or soft furnishings which cannot be proven to comply with the above fire safety regulations. The Landlord must ensure that all furniture and furnishings which remain in the property when let must comply with the relevant legislation. The Landlord further warrants that any furniture purchased for the property after the date of the agreement, will also comply with the Regulations for the duration of the tenancy.
  • 1.15
    Electrical Equipment (SAFETY) Regulations 1994
  • 1.15.1
    You are responsible for providing instruction books for all items of electrical equipment for your Tenant and will be responsible for ensuring that all electrical installations and appliances within the premises comply with the above regulations. The Landlord has a duty of care to ensure that the regulations are adhered to. It is recommended that a certificate is obtained from a qualified NICEIC electrical contractor. Upon request, and at the Landlord’s expense, Morgan Randall can arrange for a Portable Appliance Check (PAT).
  • 1.16
    Energy Performance Certificate (EPC)
  • 1.16.1
    From 1st October 2008, the full EPC must be made available for any home, free of charge, to a prospective Tenant, at the earliest opportunity. Morgan Randall can arrange for an EPC to be produced upon written request.
  • 1.17
    Gas Safety (INSTALLATION AND USE) Regulations 1998
  • 1.17.1
    It is a criminal offence to let a premises with gas appliances (including but not limited to gas boilers, fires, heaters, and gas water heaters) that have not been checked by a GAS SAFE/ CORGI Registered Engineer at least once every 12 months. You will need to give your Tenant documentary proof of your compliance with these Regulations at the commencement of the tenancy and within 28 days of the safety record being certified. It is the Landlord’s responsibility to inform Morgan Randall whether the Premises has a gas supply. Upon request and at the Landlord’s expense, Morgan Randall can arrange for a gas safety check to be carried out.
  • 1.17.2
    In order to ensure that the Landlord fulfils his/her legal obligations, Morgan Randall will arrange for a CORGI certified gas safety check to be carried out on the property if we have not been provided one by the Landlord at least 7 days prior to the commencement of the tenancy.
  • 1.17.3
    Where Morgan Randall manages the premises and if the Tenant is remaining in occupation after the expiry of the original certificate and the Landlord does not supply a replacement within 14 days before the expiry of the original certificate, then Morgan Randall reserves the right to appoint a GAS SAFE registered engineer to inspect and carry out any remedial works where necessary.
  • 1.17.4
    If the Landlord is not subscribed to our Management Service, the responsibility for renewing the Gas Safety Certificate and ensuring the gas contractor who carries out the safety check will be the sole responsibility of the Landlord. Morgan Randall strongly advise all Landlords to ensure that a current Gas Safety Certificate exists at all times for any property they own. The Landlord is also advised to check that the contractor they use is an active engineer registered with Gas Safe and additionally it is prudent to see a copy of a public liability insurance certificate. Failure to comply is a criminal offence. Morgan Randall have no liability if Landlords using a Lettings Service (i.e. no management) do not comply with current legislation.
  • 1.17.5
    No tenancy can commence until we are in receipt of a valid gas safety certificate.
  • 1.18
    Indemnity
  • 1.18.1
    The Landlord undertakes to keep Morgan Randall 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.
  • 1.18.2
    The Landlord agrees to indemnify Morgan Randall as agent against any costs, expenses or liabilities incurred or imposed on it, provided they were incurred on the Landlord’s behalf in pursuit of Morgan Randall’s normal duties.
  • 1.19
    Short Lets " initial term less than 6 months
  • 1.19.1
    Unless otherwise agreed in writing, it is the Landlord’s responsibility to pay for all utility bills including gas, electricity, water and council tax. It is the Tenant’s responsibility to pay for any telecommunication services.
  • 1.19.2
    Unless otherwise agreed in writing, the premises may be marketed for both long term and short term tenancy periods.
  • 1.19.3
    If a short let tenancy is granted to an individual of a term less than 6 months, the Landlord is reminded that the under the Housing Act 2004, the Tenant has a right to extend the term to 6 months (subject to serving a Section 21 notice).
  • 1.20
    Letting of other Property to Tenant
  • 1.20.1
    In the event that the Tenant, occupant or licensee of the property enters into an agreement with the owner/Landlord to rent another property owned by, referred by or linked to the Landlord, Morgan Randall is to be notified by the Landlord in writing and you will be liable to pay Morgan Randall commission fees for the initial period of the tenancy and also in respect of any renewals, extensions, hold-overs and/or new agreements which come after the initial period. Morgan Randall’s commission fees are set out in clauses 1.1 and 1.2. This fee is payable whether or not any agreement is negotiated or finalised by Morgan Randall.
  • 1.21
    Sale of Property by Landlord
  • 1.21.1
    Where a property is sold, transferred or otherwise dealt with, with the benefit of a tenancy, you must inform Morgan Randall in writing and Morgan Randall’s fees remain the responsibility of the original Landlord for the duration of the tenancy and for any extensions, renewals or periods of holding-over, irrespective of whether negotiations of the sale were carried out by Morgan Randall. The Landlord should instruct his solicitor to assign responsibility for Morgan Randall’s fees to the purchaser.
  • 1.22
    Early Departure of Tenant
  • 1.22.1
    Should the Tenant leave the premises of their own accord prior to the expiration of the Tenancy it is the Landlord's responsibility to take the appropriate action to recover any outstanding rent from the Tenant. In such an event where the Tenant departs early, the Landlord’s fees are charged in accordance with clause 1.3.
  • 1.23
    Rent Arrears/ Breaches of Covenant, Formal Notices.
  • 1.23.1
    It is your responsibility to take all necessary steps to ensure that actions are taken to protect your interests, including instructing solicitors and commencing legal proceedings to preserve your rights and recover arrears of rent and to defend all actions or other legal proceedings and arbitrations that may be brought against you in connection with the premises. All costs and disbursements incurred including legal costs and disbursements will be payable by the Landlord. Where appropriate, we are able to prepare and serve formal notice to the Tenant to vacate the premises in accordance to the Agreement. The cost of this will be charged to the Landlord.
  • 1.23.2
    Upon request, if you require the Tenant to vacate the premises early due to a breach of the tenancy agreement, we can arrange for the correct notices to be served. The cost of this will be charged to the Landlord.
  • 1.23.3
    Additional fees as per our rate card will be payable in respect of our dealing with referrals to the rent assessment committees or any other Court or Tribunal proceedings or for protracted correspondence on your behalf. If you decide that specialist solicitors should be instructed you will also be responsible for their fees and any other expenses incurred in dealing with such matters.
  • 1.23.4
    It is the Landlord’s responsibility to recoup any losses suffered as a result of early termination or early eviction.
  • 1.24
    Purchase of items for property and third party Contactors
  • 1.24.1
    Morgan Randall can be instructed to purchase specific items for the property or from time to time instruct third party contractors to carry out requested or necessary work to or in relation to the premises. Any commission, interest or other income earned by Morgan Randall whilst carrying out our duties as agent for the letting and/or management of the property will be retained by Morgan Randall.
  • 2.0
    Comprehensive Property Management Service
  • 2.1
    Maintenance of the premises
  • 2.1.1
    Sections 11 to 16 of the Landlord and Tenant Act 1985 state that you must:
    (a) Keep the structure (including the drains, gutters and down pipes) and the exterior of the premises in good order and repair);
    (b) Keep the appliances for supply of gas, electricity and water in good repair
    (c) Keep the appliances for supply of space heating and water heating in repair; and keep the sanitary appliances in repair.
  • 2.1.2 By signing and returning this Agreement you give us authority to organise and where necessary supervise minor repairs / routine works to comply with the above. The cost of such works along with any administration charges will be deducted from any funds held by Morgan Randall on your behalf.
  • 2.1.3
    We shall retain from the first rental payment (or as soon as funds are available) £300 which will be held by Morgan Randall as a deposit to create a "Repair Fund". If repairs or replacements are likely to exceed this amount, we will, except in situations we view as emergencies, endeavor to contact you wherever practical to obtain your authority to incur that expense. We will, wherever practical or when deemed necessary, supply you with up to two estimates before instructing contractors to undertake the work. In the event that we do not receive contrary instructions from you in writing within 7 days we will proceed with your full authority to act as we deem appropriate having regard to your contractual and statutory obligations.
  • 2.1.4
    Upon request and by agreement, all major refurbishment/building works arranged by Morgan Randall may be subject to additional fees.
  • 2.1.5
    We are not able to arrange any works prior to us receiving a signed copy of this agreement and holding cleared funds sufficient to meet the liability. We cannot undertake to meet any outgoings beyond the funds we hold. If we do not hold funds to settle an invoice, we may provide your contact details to the supplier so that they can apply to you for payment. If we view a situation as an emergency where the cost of repair or resolution is greater than the funds held on your behalf, and to ensure that you comply with the above, we will act on your behalf and offer the Tenant the option to assume liability of any third party costs and authorise him/her to deduct the cost of such works from future rent payments. If the residual future rent payments are not sufficient to cover the costs, the Landlord agrees to pay the balance prior to the end of the tenancy
  • 2.1.6
    Morgan Randall include a ‘Premium Managed’ package as part of the managed service we offer. This includes the following (subject to clause 2.1.7, 2.1.8 and 2.1.9);
    - Continual management of the Premises when it is vacant during any void period as per clause 2.5
    - Arrange & cover the cost of a Check In report (where required) as per clause 1.8
    - Arrange & cover the cost of an initial Inventory Report (where required) and any updates to this report. Updates are carried out every 5 years from the date of original report or after any major works as per clause 1.8
    - Arrange and cover the cost of all Gas Safety Certificates throughout the term of the tenancy (where required) as per clause 1.17
    - Arrange and cover the cost of an EPC (where required) as per clause 1.16
    - Arrange and cover the cost associated with providing a full comprehensive tenancy agreement as per clause 1.6
    - Arrange and cover the costs associated in producing quarterly and annual returns for all international landlords as per clause 1.13
    - Arrange and cover the cost of providing an unaudited income and expenditure report when requested at the end of each financial tax year.
    - Arrange & cover the costs of registering the Deposit as per clause 1.10.5
    The cash redemption value of these are 0.001p each. Please note that because of the diverse requirements involved, Morgan Randall do not include PAT electrical tests (clause 1.15) as part of the Premium Managed package. Morgan Randall reserves the right to refuse or rescind this offering at any time. The offering is only available to properties within our office catchment areas.
  • 2.1.7
    The Premium Managed package is not valid in conjunction with any other offers or promotions and is only valid when the landlord subscribes to our lettings service at the full published rate of 11%+VAT and management service at 6%+VAT and renewal fees as per clause 1.2. The Premium Managed package is not applicable to any short let tenancies.
  • 2.1.8
    If the Landlord subscribes to our management service mid way through an existing tenancy whether the original letting was carried out through Morgan Randall or not, the Premium Package is not valid in conjunction with any other offers or promotions and is only valid when the landlord subscribes to our lettings service at the full published rate of 11%+VAT and management service at 6%+VAT calculated on a pro rata basis from the date of original subscription to the end of the initial term and renewal fees as per clause 1.2. In such cases, the Landlord may not benefit from some of the services included in the Premium Managed package which would have been provided at the start of the current tenancy such a Tenancy Agreement, Inventory or Check in reports but will benefit from all the inclusive offerings as per Clause 2.1.6 for future tenancies and on going inclusive offerings for the current tenancy such as the annual Gas Safety Certificates and Inspections.
  • 2.1.9
    If the management service is terminated in accordance with clause 2.6, the Landlord is liable for cost of all services received which were provided as part of the Premium Managed package. The cost of all services will be charged as per Morgan Randall’s current rate card prices.
  • 2.2
    Payments of other outgoings
  • 2.2.1
    We can, if instructed in writing, discharge other liabilities from rental income providing we are holding sufficient funds (e.g. pay your ground rent, service charges when you have a leasehold interest in the premises). It is your responsibility to instruct these service providers to contact Morgan Randall direct. We cannot act on your behalf in connection with any dispute arising from such payments and accept no responsibility in the event of any dispute.
  • 2.2.2
    All third party accounts will remain in the name of the Landlord and as such in the event an overpayment is made on behalf of the Landlord, these funds must be reclaimed by the Landlord from the third party should Morgan Randall’s attempts be unsuccessful.
  • 2.2.3
    Morgan Randall takes no responsibility for any late payment charges, or penalties of any nature that the service providers may impose.
  • 2.3
    Premises Visits
  • 2.3.1
    Where we see just cause through the normal course of our day to day management of your premises we will carry out a visit of your premises once every six months throughout the term of your tenancy as part of our management service. We may elect to carry out non-expert investigations of alleged disrepair that come to our attention by way of the Tenant or a third party. If required, a written report will be forwarded to you together with any recommendations.
  • 2.3.2
    If you require more frequent visits you should notify us in writing as and when you wish these to be carried out during the course of the tenancy. Additional visits will incur a charge (please see our rate card for costs). It should be appreciated that any visit can only highlight obvious visual defects and will not be an expert investigation or structural survey of the premises.
  • 2.3.3
    We cannot accept responsibility for hidden or latent defects. If, in our opinion, the occupants are not taking proper care of the premises we will inform them and the Landlord.
  • 2.3.4
    If for whatever reason, Morgan Randall are not able to carry out visits to the premises, the liability will be limited to the cost of the inspection visit. This does not apply for cases where the Tenant refuses access.
  • 2.4
    Purchase of items for property and third party Contactors
  • 2.4.1
    Morgan Randall can be instructed to purchase specific items for the property or from time to time instruct third party contractors to carry out requested or necessary work to or in relation to the premises. Any commission interest or other income earned by Morgan Randall whilst carrying out our duties as agent for the letting and/or management of the property will be retained by Morgan Randall.
  • 2.5
    Vacant Periods
  • 2.5.1
    This Management Service does not include supervision of your premises when it is vacant (e.g. waiting to be let). Landlords are advised to inform their insurance company if the property is vacant for more than 2 weeks.
  • 2.5.2
    During these void periods, Morgan Randall will not charge a fee to continue managing the property whist sourcing a new tenant. If the Landlord wishes to use this service, this must be requested in writing 10 days before the end of the Tenancy. If the Landlord wishes for Morgan Randall to manage the premises prior to the initial Tenancy, this must also be requested in writing.
  • 2.5.3
    We must also receive written instructions by the Landlord to disconnect or have turned off, any supplies to the property for which we will arrange for the required contractor to attend at the Landlord’s expense. Written consent is not required if we deem the situation to be an emergency.
  • 2.5.4
    Morgan Randall accepts no responsibility for any damage or theft during any vacant periods.
  • 2.6
    Termination of Management
  • 2.6.1
    Either party has the right to terminate this Agreement in writing:
    • Upon the Tenant’s vacation;
    • Or if the other party falls in breach of the clauses set out within this Agreement during a Tenancy where monetary compensation is wholly inadequate.
  • 2.6.2
    You may withdraw your instructions for us to manage the premises upon giving us 3 months written notice. In the event that the premises are handed over to you with the Tenants still in residence our charges will continue to be payable as if we were then instructed on a Letting only service basis, this will be charged at the published rate.
  • 2.6.3
    We may terminate our retainer immediately if you are in major breach of any of the Terms contained in this Agreement or in the event that you do or do not do something which makes it impossible, impracticable or illegal to continue providing these services. We reserve the right to assign our rights and or obligations under this Agreement upon giving you two months written notice. In all other circumstances we will give you one month’s written notice before terminating our retainer.
  • 2.7
    Transfer of utilities
  • 2.7.1
    Where provided with the necessary information, such as names of suppliers and utility account numbers, we will forward these details to the Tenants to notify existing service providers and the local authority of their liability (if appropriate) for payment of the services and council tax during the tenancy
  • 2.7.2
    The utility companies and the local authority should send the relevant forms to the new occupier(s) to be completed and signed. It remains the Tenants’ responsibility to ensure that a new account is opened in their name. Morgan Randall cannot be held liable if services are disconnected or are not transferred by the utility companies.
  • 2.7.3
    At the end of the tenancy, we will contact the Tenants and inform them of their responsibility to inform the service companies of the check out date and request transfer of responsibility for the service accounts to the Landlord. Upon written request, we will pay bills received from monies held on the Landlord’s behalf until the property is re-let. Morgan Randall cannot be held liable should the service companies cut off the services for whatever reason.
  • 2.8
    Check out, deposit return and post tenancy works
  • 2.8.1
    At the end of the tenancy, we will provide you with a check out report (where applicable) and handle the return of the deposit as per clauses 1.10.8 and 1.10.9.
  • 2.8.2
    If you are subscribed to our Management Service at the point of Check Out, Morgan Randall will make recommendations and negotiate with the Tenant in respect of claims against the deposit (if any).
  • 2.8.3
    If any works are required at the end of the tenancy or in preparation for a new tenancy, Morgan Randall can arrange to have these carried out.
  • 2.9
    Insurance
  • 2.9.1
    It is essential that the premises and contents included in the Check-in and Inventory are adequately insured and that your insurers are aware that the premises is let. Failure to do so may invalidate your insurance. You must inform your insurers whenever the premises remain vacant for a period greater than specified in your insurance policy.
  • 2.9.2
    We will not be responsible for the renewal of your insurance cover. We strongly recommend you arrange for an insurance policy which covers loss of rent, contents, and legal expenses.
  • 2.9.3
    Activities relating to the arrangement and administration of insurance are governed by the Financial Services and Markets Act 2000. As a result, we are unable to arrange insurance on your behalf, to notify your insurer of claims or to complete documentation relating to those claims.
  • 2.9.4
    We will notify you when we believe that damage to your property has resulted from an insured risk, and will provide you with the information that you need in order to make a claim. We will also obtain estimates for repairing the damage which can be supplied to the insurers, and arrange for the repairs to be carried out upon your instruction.
  • 3.0
    General terms
  • 3.1
    Permissions and Consents
  • 3.1.1
    The Landlord warrants that:
    i) Consent to let from his mortgagees has been obtained
    ii) Where he is a lessee, the lease extends beyond the term that he proposes to let and that any necessary consents have been obtained
    iii) He has notified his insurance company of his intention to let and has obtained their agreement to extend the insurance cover on the property and its contents to cover the changed circumstances
    iv) Where he is a joint owner, he has ensured that all the owners are named in the Tenancy Agreement and that he is authorised to give instructions on their behalf.
    v) These terms are applicable for all properties owned by the Landlord or the person or entity the Landlord is acting on behalf of and/or for all future tenancies agreed by the Landlord until further written notice by Morgan Randall or if terms are superseded by more recent terms.
    vi) If any monies owed to Morgan Randall are outstanding for more than seven days, we may use the funds obtained or held on the Landlord’s behalf, including rent payments to cover this. These funds may be obtained from any property belonging to the Landlord on which Morgan Randall is instructed.
  • 3.2
    Mail
  • 3.2.1
    It is not part of our normal function to forward the Landlord's mail. Therefore no responsibility can be taken for mail sent to you at the premises or to our offices. We recommended that you arrange for it to be redirected via the Post Office.
  • 3.2.2
    All mail received will be returned to sender. We take no responsibility for any losses incurred whatsoever for returning mail to sender.
  • 3.3
    Consent for Letting and Credit Check
  • 3.3.1
    You must provide us with sufficient documentary evidence to satisfy us that you are legally entitled to grant a Tenancy of the premises by virtue of section 1 of the Accommodation Agencies Act 1953. These must be sent along with this document. If the premises are registered with the Land Registry we reserve the right to obtain office copy entries or carry out a Land Registry search. If the premises are unregistered we reserve the right to carry out such investigations that we consider necessary. The cost of these searches will be absorbed by Morgan Randall. By signing these terms and conditions you warrant to us that you are the owner of the premises, or otherwise lawfully entitled to enter into a Tenancy Agreement.
  • 3.3.2
    By signing this agreement, you give permission for Morgan Randall to carry out consumer credit searches on the landlord(s) where we deem it necessary.
  • 3.4
    Interest on Clients Monies
  • 3.4.1
    Any interest accrued on clients' money which we hold will be retained by ourselves to cover bank and administration charges.
  • 3.4.2
    Any commission, interest or other income earned by Morgan Randall while carrying out our duties as agent for the letting and/or management of the property, for example by referrals to solicitors, EPC providers, contractors or inventory clerks, will be retained by us.
  • 3.5
    Keys
  • 3.5.1
    It is the Landlord’s responsibility to provide us with a full set of keys for the premises in order to be able to let and manage your property effectively. These will be held locally in our secure system and made available to our approved suppliers or any other party authorised by you. Our Key Holding service is free of charge to everyone whether or not Morgan Randall let or manage the premises.
  • 3.5.2
    Morgan Randall’s secure key tag system ensures that third parties cannot identify which property a set of keys belongs to. Therefore in the event that keys are lost or unaccounted for, Morgan Randall’s liability is strictly limited to the cost of cutting a new set of keys. It is the responsibility of the Landlord to provide a full set of keys and/or electronic fobs to access the property prior to the commencement of Tenancy. In the event that the Landlord fails to supply the appropriate keys, Morgan Randall will arrange to for the relevant keys to be cut at the Landlord's cost.
  • 3.6
    Acts of Third Parties
  • 3.6.1
    We will not be responsible for any loss or damage that you suffer through the act, default or negligence of any third party including any bank which may arise other than the through the negligence or failure on the part of Morgan Randall.
  • 3.7
    Definitions
  • 3.7.1
    In this Agreement the use of the singular includes the plural and the use of the masculine includes the feminine. If there is more than one person signing as the Landlord all parties will be jointly and severally liable for the obligations contained in this Agreement. Jointly and severally liable means that each person will be responsible for complying with the obligations and paying all charges and costs under this Agreement, both individually and together.
  • 3.7.2
    Morgan Randall is a trading name of Ascot Ltd.
  • 3.8
    Proper Law and Jurisdiction
  • 3.8.1
    These Terms and Conditions shall be governed by and construed in accordance with the law of England and Wales. Make sure that you have read and understood these Terms and Conditions, and if you are unsure, seek legal advice before signing.
  • 3.9
    VAT
  • 3.9.1
    All fees are exclusive of VAT. VAT will be charged at the prevailing rate which is currently 20%.
  • 3.10
    Disclaimer
  • 3.10.1
    Morgan Randall will carry out all services with reasonable care and skill. However, it is unable to guarantee the suitability of Tenants, timely rental payments or vacant possession at the end of a tenancy and cannot be held liable by the Landlord for such events.
  • 3.11
    Amendments/Variations
  • 3.11.1
    This contract constitutes the entire agreement between Morgan Randall and the Landlord and supersedes all prior agreements, understandings, representations or communications between the parties. No amendment or variation to this contract will have any contractual effect unless approved in writing by a Director of Morgan Randall. No other correspondence, prior arrangements, understandings, representations or communications between the parties that infer any additional clauses, promises or conditions that are contained within this document are considered null and void unless countersigned by a Director of Morgan Randall.
  • 3.11.2
    Morgan Randall reserves the right to change its schedule of fees and terms of business. The Landlord agrees to be bound by these changes upon being provided with the revised documents and no objections are raised within 10 days.
  • 3.12
    Data Protection
  • 3.12.1
    The Landlord acknowledges and agrees that Morgan Randall can hold personal data in respect of the Landlord and any Tenants for use in the course of its business.
  • 3.13
    Authority to Take Instructions from Others
  • 3.13.1
    From time to time the Landlord may elect and authorise, in writing, a third party person or body to act on their behalf in connection with services offered by Morgan Randall. In such cases, the Landlord must fully indemnify Morgan Randall against all claims, damage, liability, costs, loss and expenses of any kind incurred by any member of staff representing or employed by Morgan Randall.
  • 3.14
    Electronic documentation and Communication
  • 3.14.1
    Contracts that have been signed electronically by fax, website or e-mail, are binding and admissible as evidence. To facilitate a prompt service, from time to time, we may request our Tenants, Landlords or other Third Parties to sign documents electronically. In the event that we are unable to obtain written confirmation from the Landlord to proceed with a Tenancy, we will accept verbal confirmation in lieu of these documents in order to complete the Tenancy promptly. In the event that authorisation is required from the Landlord to carry out any works in relation to the property, we will accept verbal confirmation to proceed. Please be advised that for security, clarification, dispute and training purposes all calls are recorded.
  • 3.15
    Compensation to Agent
  • 3.15.1
    You will reimburse us in respect of any claim damage or liability, whether criminal or civil, suffered from and during the time that we are or were acting on your behalf.
    For the avoidance of any doubt we reserve the right to have work carried out on your behalf and to charge you for that work to ensure that you fulfill your contractual and statutory obligations as a Landlord. In the event that the Landlord withdraws from any offer that has been accepted either verbally or in writing in relation to the property prior to the Tenant or perspective Tenant taking possession of the premises, except where the Tenant has failed to pass the identity checks (or reference checks where applicable) by the agreed Tenancy Start Date, The Landlord agrees to pay Morgan Randall a charge equal to the published fee for the agreed Tenancy term. Morgan Randall reserves the right to charge interest on late payment by the Landlord at a rate of 4% above the Bank of England base rate charged on a daily basis until the balance is paid.
  • 3.15.2
    If for whatever reason, the Tenant claws back or disputes funds via his bank or credit card company that we have already previously receipted or collected on the Landlord’s behalf and subsequently transferred to the Landlord, these funds are to be returned by the Landlord to Morgan Randall immediately upon request.
  • 3.15.3
    In the event that the Landlord is a company, the directors or owners of the company agree to be jointly and severally liable for the debt personally if bankruptcy or insolvency proceedings are brought against or are subject to the company (or its parent company), a receiver or administrator is appointed over any of the company’s (or its parent company’s) assets or the company (or its parent company) goes into liquidation or enters into a voluntary agreement with its creditors other than for the purpose of reorganisation (or any similar event in its country or incorporation takes place).
  • 3.15.4
    If Morgan Randall fees are outstanding for more than 7 days, we reserve the right to revoke any special promotions or fee reductions rendering them null and void and the full published fee rates will apply.
  • 3.15.5
    After an initial demand for fees is served by Morgan Randall to the Landlord to pay outstanding commission fees and expenses, if any further correspondence is made to request funds, we reserve the right to apply reasonable late payment fines and in the unlikely event that we have to instruct debt collection agency to pursue the debt, their charges will be levied against the Landlord.
  • 3.17
    Marketing
  • 3.17.1
    We will market your premises to inform suitable applicants of the availability of your premises by erecting a To-Let board at the premises and by advertising in selected publications and/or websites. Please notify us in writing if you have previously agreed not to erect a To-Let Board with the Freeholder or other interested parties.
  • 3.18
    Viewings
  • 3.18.1
    All efforts should be made to provide Morgan Randall with keys and if the property is already tenanted, then the Tenants should be informed of the possibility of viewings. Morgan Randall will not be held responsible for any losses or delays in letting the premises as result of not being able to access the property.
  • 3.19
    Headings
  • 3.19.1
    The headings in this document do not form part of these Terms and Conditions and shall not be taken into consideration in the interpretation or construction of these terms and conditions.
  • 4.0
    Complaints Procedure
  • 4.1
    Complaints procedure
  • 4.1.1
    If for any reason you are not entirely satisfied with any aspect of our service and are unable to resolve any problems with your negotiator or department manager please write to: The Complaints Officer, Morgan Randall, Unit 2 Discovery Dock East, 3 South Quay Square, Canary Wharf. E14 9SH. Your complaint will be acknowledged within 3 working days of receipt and an investigation undertaken. A formal written outcome will be sent to you within 15 working days. If you are still unhappy with the Complaints Officer’s final statement, you may contact the Property Ombudsman to whom we are members.
  • 5.0
    Notice of the Right to Cancel
  • 5.1
    Consumer Contracts ( Information, Cancellation and Additional Charges) Regulations 2013 ("the Cancellation Regulations")
    If you sign this contract away from our offices, either following face to face negotiations or if all the negotiations have been by phone or email and you have never dealt face to face with our representative, the following applies:
  • 5.1.1
    You have the right to cancel this contract within 14 days without giving any reason.
  • 5.1.2
    The cancellation period will expire after 14 days from the day you sign this Agreement.
  • 5.1.3
    To exercise the right to cancel, you must inform us of your decision to cancel this contract by a clear statement sent to us by post, fax or email. You may use the cancellation form below but it is not obligatory.
  • 5.1.4
    To meet the cancellation deadline, it is sufficient for you to send your communication concerning your exercise of the right to cancel before the cancellation period has expired.
  • 5.1.5
    If you cancel this contract, we will reimburse to you all payments received from you. We will make the reimbursement without undue delay, and not later than 14 days after the day on which we are informed about your decision to cancel this contract.
  • 5.1.6
    Under the Cancellation Regulations we cannot begin providing you with the service under these terms unless you have requested that we begin the service in writing. You may do this by signing in the relevant place on the signatures page.
    If you request in writing that we begin performance of the service and subsequently you exercise your right to cancel you shall pay us an amount which is in proportion to the work we have done until you have communicated to us your cancellation.

 

For the purposes of the Data Protection Act 1998, the information provided in this document will be used by Morgan Randall for administrative purposes. By completing and returning this document, the Landlord agrees to be bound by the terms and conditions attached to and incorporated within it.

If you do not wish Morgan Randall to use your information for the purpose of market research or the provision of similar products, please tick this box

If you do not wish Morgan Randall to pass your information to carefully selected third parties for the purposes of market research or the provision of similar products, please tick this box

 

We are a member of the Ombudsman for Estate Agents (OEA) and abide by their code of practice to maintain a fair and independent service for buyers, sellers, tenants and landlords of residential property in the UK. By signing this Terms and Conditions document, you also consent to us divulging details relating to the rental of your property to the OEA in order to assist them in their monitoring of our compliance with the Code of Practice. We are also proud members of NALS, ARLA, OFT Safe Agent, DPS and ICO.