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Lettings Landlord Terms & Conditions

1. Our Services 

A full description of our Services is set out in appendix 1 to these Terms & Conditions of business.

2. Our Fees

(i) Fees for Tenant Introduction Only:

Our fees payable (including VAT) for the Tenant Introduction Service are as set out in the Contract. If you engage us to provide the Tenant Introduction Service, then you agree to pay our fees as follows:

a. upfront, prior to the tenant moving in, failing which Engel & Völkers reserves the right to collect the fee from the first months rent due and payable by the Tenant. If this is not sufficient to cover our fees we reserve the right to collect subsequent rent payments until our fee is paid;

b. for any periodic tenancy arising or each renewal of an existing agreement after 12 months, such fee as is agreed by you and Engel & Völkers in writing; and

c. a charge for preparation of the Tenancy Agreement or any renewal of an existing agreement, registering the deposit and any additional administration.

Where the tenancy is terminated by the exercise of the break clause, we will return the already collected fees that are not covered through rent (or through the deposit) pro rata to the Landlord after receiving all the paperwork confirming the end of the tenancy.

(ii) Fees for Tenant Introduction and Rent Collection:

Our fees payable (including VAT) for the Tenant Introduction and Rent Collection Service are as set out in the Contract. If you engage us to provide the Tenant Introduction and Rent Collection Service, then you agree that our fees will be paid as follows:

a. upfront in full up to the date the break clause and thereafter on the terms agreed under the Tenancy Agreement; and

b. as a deduction from the rental income.

(iii) Fees for Full Management Service:

Our fees payable (including VAT) for the Full Management Service are as set out in the Contract. If you engage us to provide the Full Management Service, then you agree to pay our fees from the start to the end of the tenancy term as a deduction from any rental income payable on the terms agreed under the Tenancy Agreement.

3. Renewals

Engel & Völkers will do their best to try and negotiate a renewal of the tenancy where required. If the existing Tenant renews, extends, and holds into a new agreement and rental income is obtained, renewal fee should be payable to Engel & Völkers. This renewal fee is payable as a percentage of the total rent amount of the of the agreed renewal term. The fees for Renewals that is payable (including VAT) are as set out in the Contract. The renewal fee is payable as set out in Paragraph 2. Renewal fee remains payable for as long the Tenant introduced by Engel & Völkers pays rent to the Landlord. Renewal fee will be due regardless whether it is negotiated by Engel & Völkers.

4. Early Termination / Early Departure of Tenant

(i) No refunds are payable where the term of the Tenancy ends before the end date specified in the Tenancy Agreement as a result of early termination by agreement of the parties except where one party serves a proper notice under a break clause (where this is expressly agreed in writing). Where the term of the Tenancy Agreement ends before the end date specified in the Tenancy Agreement and you instruct us to re-let the Property and new fees are paid for the letting and / or property management, the original fee that is duplicated will be credited to your account with us.

(ii) 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 appropriate action to recover any outstanding rent from the Tenant. In such an event that the Tenant departs early, the Landlord’s fee are charged in accordance with these Terms and Conditions.

5. Transfer of Rent

Rent will be collected in accordance with the Tenancy Agreement. Engel & Völkers will always do our best to transfer any rent due to your bank account as soon as possible after confirmation of receipt.

6. Inventory, Check In & Check Out

We can arrange an independent inventory clerk to prepare an inventory for the property and to carry out the Check In of the new Tenant. The Tenant is responsible for the cost of the check out the Landlord is responsible for the Inventory and the Check In.

7. Tenancy Agreement

Unless we are instructed otherwise, we use our standard Tenancy Agreement which has been expertly drafted. Our charge to the Landlord for use of this Tenancy Agreement is set out in the Appendix. Landlords instructing their own solicitors to prepare an agreement must be responsible for their solicitor’s fees. If you do provide your own Tenancy Agreement it must be compliant with current legislation and deemed to be fair to both parties.

8. References

At Engel & Völkers we pride ourselves on providing high calibre Tenants. We will obtain comprehensive references on any prospective tenant which in turn will be presented to the Landlord. By signing the tenancy agreement the Landlord is deemed to have seen and approved these references.

9. Documentation

In certain cases we may require that documents be signed and delivered electronically by either Tenant or Landlord. Contracts completed by this method arelegally binding.

10. Keys

In order to successfully market and let your property we will require a full set of keys. It is the Landlord’s responsibility to supply a full set of keys to the Property for each Tenant and a full set of keys to us if we are managing the property. Engel & Völkers can obtain keys at your expense if requested but will require all of the necessary certificates and information.

11. Utilities

The Tenant is responsible for the transfer of utilities into their name but we recommend that you make sure that you or the last Tenants have been checked and closed. With a large number of suppliers on the market it is advisable to inform the Tenant of the suppliers used.

12. Property Cleaning

If necessary we can organise for a trusted and approved cleaning company to carry out a professional clean if requested by the Landlord. In accordance with the Tenancy Agreement the property must be professionally cleaned prior to the start of the tenancy and this is a Landlord cost. The Tenant is responsible for the cost of the professional cleaning at the end of the tenancy. A Landlord may need to claim this expense from the Tenant’s deposit if a Tenant neglects this responsibility.

13. Deposit

A standard six week deposit will be obtained from the Tenant which is held against unpaid rent at the end of tenancy, unpaid bills, damage to the property or any other costs incurred to the Landlord as a result of a breach of contract by the Tenant. This deposit will be registered with and held by the Deposit Protection Services as per the terms of the tenancy agreement. The Landlord is not due any interest that accrues on the deposit. As in line with new deposit legislation, any claim against the deposit must be submitted within 10 days of the Tenant vacating the property. We aim to carry out the deposit release as promptly as possible. In order to do this we require written instruction from the Landlord outlining any deductions you wish to make from the deposit. Engel & Völkers aim to provide an equitable tenancy agreement for both parties both Landlord and Tenant. The “Assured Shorthold Tenancy” agreement we use includes expertly drafted clauses in accordance with the latest legislation.

14. The Gas Safety Regulations 1998

It is the responsibility of the Landlord to ensure that all the property’s gas appliances and fixed installations are maintained and in good working order and checked a minimum of every 12 months by a registered gas safety engineer. We can arrange for a gas safety certificate to be completed by a local Gas Safe registered engineer if requested.

15. The Electrical Equipment (Safety) Regulations 1994

The Landlord should make sure that all the gas appliances and fixed installations are completely safe and regularly checked by a registered engineer. Fuses, plugs and cabling should be inspected and replaced wherever necessary with the correct rating the individual appliance. We can arrange for an Electric Safety Test to be carried if requested.

16. The Fire & Furnishings (Fire) (Safety) Regulations 1988; The Fire & Furnishings (Fire) (Safety) (Amendment) Regulations 1993

The Landlord should be fully aware of the Terms and Conditions of both of these regulations. The Landlord declares that all furniture provided to be included in the property complies in every respect with the legislation. It is the Landlord’s responsibility to make sure that any furniture added to the property by the Landlord after the date of this Contract also complies with these regulations for the remaining term of the tenancy.

17. The Energy Performance of Buildings (Certificate and Inspections) (England and Wales) Regulations 2007 SI 2007/991

As of the 1st October 2008, prospective Tenants of residential Tenants have to be provided with an Energy Performance Certificate free of charge and at the earliest opportunity, prior to entering in to any contract to rent out the property. EPCS have to be provided by accredited energy inspectors and last for 10 years. If an EPC cannot be provided by the Landlord, Engel & Völkers can arrange for an EPC to be obtained at a cost of £90 (£75+VAT). This must be paid in advance when Engel & Völkers are instructed to market your property.

18. Houses in Multiple Occupation (HMO)

Should mandatory licensing be required, it is the Landlord’s responsibility to obtain this license. More Information can be obtained at www.odpm.gov.uk. The Landlord agrees to indemnify Engel & Völkers fully against any costs or liabilities imposed that arise as a result of the Landlord failing to comply with any of the above regulations.

19. Rent Arrears/ Breaches of Covenant /Service of Notices

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 and legal proceedings and arbitrations that may be brought against you in connection with the property. Engel & Völkers will charge £60 for the preparation, service and delivery of any legal notices but will not do so without the Landlord’s direct instruction.

20. Overseas Landlords – Finance Act 1995

If a Landlord is deemed to be a non- resident for tax reasons, the Landlord must pay United Kingdom Income tax on any rent received from properties in the UK under the Finance Act 1995. Engel & Völkers is obliged by Law to deduct tax at the appropriate rate as ordered by HM Treasury on all monies received and account to HM Revenue & Customers on a quarterly basis. This is an automatic process unless a Landlord provides an “Exemption Certificate” from HM Revenue & Customs specifically permitting Engel & Völkers to release rent to the Landlord less the deduction of tax. This “Exemption Certificate” is not transferable between different estate agents. If a Landlord does not provide an “Exemption Certificate” then a quarterly charge of £90.00 will be payable to Engel & Völkers to carry out the necessary work to submit returns to HM Revenue & Customs. As required by law, Engel & Völkers to consider any Landlord who is believed to be living outside the UK as a non-resident and to make the necessary deductions. Where a Landlord is not collecting the rent directly and is a non-resident for tax purposes the Tenant is liable for the collection of tax and Engel & Völkers will advise them with the relevant information.

21. FICO Exemption Certificate

A NRL1 or NRL2 must be completed by overseas Landlords. The application form should be sent to “The Centre for Non – Residents (CNR), St Johns House, Merton Road, Bootle, Merseyside, L69 9BB. In respect to Overseas Landlords, agents are governed by Inland Revenue guidelines. We advise to take the time to understand the tax implications of the legislation or seek advice from your accountant.

22. Commission & Interest

Any commission, interest or other income earned as a result of us carrying out our role and duty as your agent for the letting of the property will be retained by Engel & Völkers.

23. Sale of Property by Landlord

Where the Property is sold, transferred or otherwise dealt with, with the benefit of a tenancy, you must inform us in writing and Engel & Völkers’ 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 are managed by Engel & Völkers. The Landlord should instruct his solicitor to assign responsibility for Engel & Völkers’ fees to the purchaser.

24. Permissions & Consent

The Landlord agrees that consent to let has been granted by their insurance companies, mortgagees and Superior Landlord (if applicable). Any conditions of letting imposed by the insurance company, mortgage lending company or Super Landlord (if applicable) should be made clear to the Tenant in writing before the start of the Tenancy. The Landlord must ensure that all owners of the property are named on the Tenancy Agreement and that they are authorised to give instructions.

25. Letting of other property to Tenant

In the event that the Tenant enters into an agreement with the owner to rent another property owned by or linked to the Landlord, Engel & Völkers is to be notified by the Landlord in writing and you will be liable to pay Engel & Völkers a commission 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. This fee will apply whether or not any agreement is negotiated or finalised by Engel & Völkers.

26. Sale of Property to Tenant

In the event that the Landlord and Tenant enter into an agreement for the sale of the let property, Engel & Völkers is to be notified by the Landlord in writing and you will be liable to pay Engel & Völkers a fee in respect of such sale.

27. Legal Proceedings

With regards to any legal proceedings concerning the recovery of rent or repossession, Engel & Völkers cannot be held responsible and cannot accept service of legal proceedings on the Landlord’s behalf.

28. Provision of Correct Information

The Landlord confirms that all information given to Engel & Völkers is to the best of their knowledge the correct information. Should Engel & Völkers suffer any loss or cause any legal proceedings to be brought against them due to the Landlord providing incorrect information, the Landlord agrees to compensate and reimburse Engel & Völkers.

29. Indemnity

(i) The Landlord undertakes to keep Engel & Völkers 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 regulations applicable to the Landlord in respect of the property.

(ii) The Landlord agrees to indemnify Engel & Völkers against all costs, expenses, or liabilities incurred or imposed, provided they were incurred on the Landlord’s behalf in pursuit of our regular duties as your agent.

30. Data Protection Act 1998

If required, Engel & Völkers by law might need to give the Landlord current and future correspondence address to the either party, local authorities, contractors, utility suppliers, debt collection agencies.

31. Agreement

The agreement between Engel & Völkers and the Landlord is constituted in this Contract and supersedes all previous understandings, representations and agreements between both parties.

32. Marketing

If Engel & Völkers are instructed to begin marketing and carry out viewings on the property with our registered applicants by the Landlord, the Landlord is bound by these terms.

33. Insurance

It is your obligation as a Landlord and Your sole responsibility to ensure that the Property is fully covered by both Buildings and Contents insurance. You must notify your insurer that the Property is to be let and you must also inform and obtain permission, if required from your insurer if the Property is to be left empty for a period of time. There may be obligations under your policy for the maintenance and security of unoccupied properties and failure to comply with these obligations or to inform your insurer of the situation may render your policy invalid. You warrant to us that this clause has been complied with. If you require, we can refer you to an insurance broker to obtain a quotation for your insurance renewal. If we do so, you acknowledge that we are merely providing a referral service for which we accept no liability and may be entitled to a commission payment on that referral.

34. Complaints

Please contact us on leo.comer@engelvoelkers.com for any complaints you would like to address and we will follow our formal procedure to deal with it. Details of this procedure are available from Leo Comer at leo.comer@engelvoelkers.com. As a member of the Property Ombudsman Services a resolution is provided any consumer complaints that are not satisfactorily resolved between the parties and will be referred to the independent Ombudsman.
The Ombudsman Services Property website is: http://www.ombudsman-services.org/property.html

London - Landlord Fee Overview

Licence Partner Contact

London Chelsea

293 Brompton Road | SW3 2DZ London
Great Britain
Fax
+44 20 759037-11

London Chelsea

293 Brompton Road | SW3 2DZ London
Great Britain
Phone
+44 20 758411-00
Fax
+44 20 759037-11

PDF File

The Property Ombudsman


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