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Terms of Business

 

 

Terms of Business

 

Thank you on behalf of the team at Oakwood Property for deciding to use our services.  This is because we are committed and passionate about looking after our clients and providing the best possible outcomes

 

The purpose of this document is to set out clearly and concisely the extent of the letting and management service offered.  By actively using the services of Oakwood Property, you agree to be bound by the terms of business and no specific signature is required for these terms to be the sole point of reference.  Terms of Business may be updated from time to time and will be communicated to clients.

 

1 - MANAGEMENT SERVICE – Oakwood Property provides a management service to owners wishing to let out their property. The standard fee for the management is taken as a percentage of the gross rents due for the period of the tenancy and a set up fee will normally be levied at the outset for marketing, taking references and arranging the tenancy.

 

The management service includes

1. Advising as to likely rental income

2. Marketing of the property as required

3. Screening prospective tenants and then arranging viewings which will be accompanied as required

4. Interviewing tenants and carrying out bespoke vetting and references as required following subjective assessment.

5. Prepare the 6 month fixed term tenancy agreement in accordance with appropriate guidelines and regulation

6. Take a deposit from the tenant tailored to the circumstances and ensure it is registered in a mandatory scheme

7. Collecting the rent monthly and forward to the landlord within 72hrs whenever practicable following receipt from the tenant. Payments will be made by direct bank transfer.

8. Advise on and assist in the transfer of utility service accounts and notify the relevant authorities of any change in occupancy, providing meter readings where applicable and possible.

9. Carry out periodic inspections of the property in relation to the specific needs of the property.

10. Co-ordination of repair or maintenance

11. Making payments on behalf of landlords from rents received for cost in managing the property

12. Prepare an initial inventory and carryout a property inspection and inventory check at the end of the tenancy and if necessary, preparing and agreeing a schedule of costs relating to any damage or unfair wear and tear prior to releasing the deposit.

13. Ensure appropriate safety certifications are in place in line with current legislation

14. On termination of the tenancy, the property will be re-let at an appropriate market rental unless otherwise instructed by the landlord

14. Periodic rent reviews, negotiated increases every 2 years or following landlord instruction

15. Scale of fees - On finding a suitable tenant, and/or someone whom you have given authority to accept on your behalf, and subject to completion of the tenancy agreement, Oakwood Property’s fees will be:

 

  1. Management Fee 10% (+VAT) of the total rent for the period the tenant is bound to you by the terms of your tenancy agreement. This period will include any statutory periodic tenancy, which may arise at the end of a fixed term.
  2. Discount Set Up Managed Properties - £275.00 (+VAT) Set Up Fee, includes finding a suitable tenant, drawing up, issuing and signing of a tenancy agreement. A photographic inventory is also included within this fee.
  3. Replacement Tenants Managed Properties £275.00 (+VAT) tenant find, vetting and tenancy agreement for existing or returning clients.
  4. Tenant Find Only Service - £349 (+VAT) including Inventory, agreement, referencing and home visits where possible.
  5. Tenancy renewal £33(+VAT) for the extending or renewal of the tenancy or secured rent increase.
  6. In the event of the Landlord terminating the agreement once a prospective tenant has been found who is willing and able to proceed, The landlord agrees to refund the tenants application deposit in addition to payment of the withdrawal fee as it the property was tenanted - £275 (+ VAT)
  7. Section 21 notice £50 (plus VAT) – The serving of a section 21 notice for a tenant giving the statutory notice period to leave.
  8. Property withdrawal - £195 (plus VAT) – If the landlord acts in a way to sell, withdraw or discontinue the property, a period of 2 months notice is required along with payment of the withdrawal fee which includes the costs of the section 21 notice as appropriate.
  9. Any repairs up to £150 in value will be undertaken and administered by Oakwood Property (UK), and deducted from the rent, (unless stated otherwise by the landlord/s

2 – LANDLORD RESPONSIBILITIES

2.1 The Landlord confirms that he/she is the sole or joint owner of the property and has the right to rent out the property under the terms of any mortgage or head lease.

 

2.2 If the landlord is a leaseholder, the terms of the lease must be checked and any necessary consent obtained to let and the landlord by signing this agreement confirms that all necessary permissions have been obtained.

 

2.3 The Landlord must ensure that adequate cover exists under both building and contents insurance and must inform insurers that the property is to be let

 

2.4 The Landlord agrees to provide the property in good condition and advise the agent of any ongoing problems

 

2.5 The landlord agrees that the agent has authority to carryout maintenance on the property up to £150 or more in an emergency situation without prior reference to the Landlord though efforts will be made to do so where possible and practicable.

 

2.6 The agent advises that no furniture is left in the property but where it is, the Landlord will ensure compliance with the Furniture and Furnishings (Fire) (Safety) Regulations 1988 (amended 1989,1993 & 1996) with regard to minimum fire resistant standards of specified items supplied in the course of letting the property.

 

2.7 The Landlord with ensure compliance with the Electrical Equipment (Safety) regulations 1994 and other relevant legislation with regard to the condition and safety of electrical equipment and appliances in tenanted premises.

 

2.8 The Landlord will ensure prior to the commencement of any tenancy that a Gas Safe registered installer has carried out a Landlords Gas Safety Certificate and will provide the agent with an appropriate copy within 14 days of the inspection.

 

2.9 The Landlord agrees at their discretion to permit the tenant to fix pictures or other wall hangings to the walls of the property provided that picture hooks are used and not sellotape, blu-tac, nals or screws.

 

2.10 The Landlord agrees to indemnify the agent against all claims, costs and expenses of whatever nature associated with the management of the property. This includes non payment of rent, damage or other defaults or claims.  Oakwood Property shall not be liable to the Client, whether in contract or not, tort (including negligence), for breach of statutory duty or otherwise, arising under or in connection with this agreement for any direct or indirect financial loss or claim.

 

2.11 The landlord agrees to pay the agents fees in accordance with the scale of fees or for these to be deducted from gross rent.

 

2.12 The Landlord agrees to supply the agent with and pay for a valid Energy Performance Certificate for the property. This is to be made available prior to any tenancy agreement being signed.

 

2.13 The Landlord agrees to inform the Agent of the fact or intention that the Landlord will be living abroad for more than 6 months of the tenancy and will ensure compliance with the Tax Management Act 1970 (Overseas Clients). The Landlord authorises the agent to lease with the inland revenue and where no exemption certificate has been provided, the Landlord authorises the Agent to make deductions from the net monthly rental income at current base rate and subsequently make quarterly returns to the Inland Revenue in accordance with the non-resident landlord scheme.

 

2.14 The Landlord agrees to install working smoke alarms to each floor in every home to ensure the safety of the tenant. Smoke alarms must be fully functional.

 

2.15 The Landlord agrees to supply a Statutory 5 year electrical inspection certificate for the property.

 

3 – GENERAL TERMS

3.1 The agent has authority to sign the tenancy agreement and legal notices on behalf of the landlord

3.2 Where this agreement is signed at a place other than a trading address of Oakwood Property, The Cancellation of Contracts Made in a Consumers Home or Place or Work etc Regs 2008 apply allowing cancellation with 14 days. The landlord however agrees to repay any reasonable cost incurred prior to this cancelation. 3.3 A holding deposit is paid by applicants and this money is forfeit by the tenant if they withdraws from the letting to cover the cost of this application process. If a suitable tenant completes this process and the landlord declines to proceed with the tenancy, the Landlord agrees to refund the applicant, the cost of the application

 

3.4 The agent is not responsible for properties during periods of void and will accept no responsibility for properties during these periods. We recommend that heating is left on in empty properties during cold weather to prevent burst pipes and it is further recommended that suitable insurance is taken out to cover these periods.

 

3.5 Sole letting rights – It is agreed that only the agent may let the property for a period of 3 months from the commencement of this agreement or the end of any previous tenancy managed by the agent. A fee of £295 (plus VAT) £354 is payable should the owner or third party issue a tenancy during these periods.

 

3.6 Any delays of payment or other defaults will be acted on by the agent in the first instance. Where the agent is unsuccessful in these initial actions, the Landlord will be advised accordingly. A solicitor may then be appointed and instructed by the landlord and the landlord is entirely responsible for legal fees and costs.

 

3.7 Letting Only Service – Where the landlord requires a letting only service, this includes items 1-6 on the management service. The landlord remains responsible for all other aspects, maintenance, deposit protection and compliance with legal requirements. The fee for this service is listed and none refundable should the tenant leave prior to the end of the tenancy. This fee will be deducted from the first months rent. Landlords must ensure they comply with the deposit protection requirements under the housing act. The service is taken by the Landlord aware that Oakwood Property fully believes that tenants require active management during a tenancy.

 

3.8 Renewals – At the end of the initial fixed tenancy, subject to further review, a further fixed period contract will be offered automatically and appropriate fee charged to the landlord. Should the tenant request a periodic tenancy, it is agreed that the agent is empowered to issues these where appropriate.

 

3.9 The terms and conditions of the agreement can be varied by either party with two months written notice.

 

4.0 Oakwood Property will charge a 0.5% fee plus VAT for the introduction of any buyer to any property including any tenant provided or managed by Oakwood Property.