Terms & conditions

1. INTRODUCTION

Thank you for considering Lawson Rutter (the trading name of Martindon Properties Limited) as the Letting Agent for your property. These terms and conditions set out the services available from us as Letting Agents. They also detail your obligations as a landlord. Should you instruct us to act on our behalf, these terms and conditions shall constitute the contract between us and they shall be applicable to the exclusion of all others.

2. LAWSON RUTTER'S SERVICES

We offer two levels of service to Landlords.

• 2.1 Tenant Introduction Service
  
  
  • 2.1.1 Marketing your property, at an agreed figure, to prospective tenants, including advertising (if appropriate) and putting up a "To Let" board.
    
    
  • 2.1.2 Negotiating price and terms & conditions with prospective tenants.
    
    
  • 2.1.3 Taking necessary references.
    
    
  • 2.1.4 Drawing up the Tenancy Agreement and obtaining signatures, plus supplying Tenants with a current Landlords Gas Safety certificate as supplied by the Landlord (see notes on Safety Requirements).
    
    
  • 2.1.5 Collecting the first month's rental and providing advice to you in relation to the Tenancy Deposit Scheme (see clause 5 below) Preparing the relevant documentation for any extension of the Tenancy.
    
    
  • 2.1.6 Taking gas and electricity meter readings if possible and if requested. See notes on Service Companies.
    
    
  • 2.1.7 Arranging an inventory check at the end of the Tenancy. If a professional inventory clerk is instructed, the fees of such clerk will be in addition to our standard fees.
    
    
  N.B If the property to be let is vacant for all or part of the time, we will require a set of keys in order to accompany prospective tenants on viewings. These keys are stored securely.
  
  
• 2.2 Full Property Management Service
  
  In addition to all the services listed above, we offer the following:
  • 2.2.1 Payment of overheads. As instructed by you we will pay any overheads associated with the property out of the rental income when it is received. We rely upon the landlord to instruct the relevant companies to forward accounts to us for payment. We will endeavour to query any obvious discrepancies although all payments are made by us without liability for errors by the creditors concerned. We regret we are unable to make mortgage payments on behalf of landlords.
    
    
  • 2.2.2 Repairs and replacements. We will deal with the day-to-day maintenance, repairs, servicing and replacements (if necessary) up to a maximum of £250 per single item without consulting Landlords. By signing these terms and conditions, you authorise out to instruct the carrying out of such works without further reference to you. In case of emergency, to protect our client's best interests, this sum can be exceeded at our discretion. Estimates will be submitted to Landlords wherever possible. Management of any works costing in excess of £250 will be subject to an additional fee of 10% of the total invoice value plus VAT.
    
    
  • 2.2.3 Inspection and defects. During the Tenancy we will investigate defects brought to our attention by tenants. More regular inspection of properties can be provided by agreement at a charge of £40 plus VAT per inspection. It must be understood however, that these inspections can only provide a superficial examination and are not a structural survey. We cannot accept responsibility for hidden or latent defects.
    
    
  • 2.2.4 Liaison with professional advisers. If requested, we are able to liase directly with solicitors, accountants or other agents on behalf of Landlords provided that Landlords accept liability for instructing their advisers and paying their fees. We reserve the right to charge additional fees on a time cost basis should we become involved in excessively long representations on your behalf (£50 per hour plus VAT).
    
    
  • N.B.1 Management funding - We cannot be held responsible for meeting any management costs on your behalf unless we are in possession of sufficient funds net of our fees. Unless otherwise agreed with you in writing, we will retain an ongoing balance of £300 from rent collected, in order to discharge management expenditure. Management does not include the supervision of property whilst it is not let unless funds are made available to discharge all outgoings and fees.
    
    
  • N.B.2 Forwarding Post. We are able to forward to a UK address any post which reaches our offices. We strongly recommend however, that Landlords arrange to have post forwarded by the Post Office as the cost is minimal and tenants cannot be relied upon to redirect post.

3. LANDLORD'S OBLIGATIONS

We agree to market and let your property on the basis that you are responsible for making the following arrangements:

• 3.1 Insurance
  You must ensure that adequate building and contents insurances are in place and that the policy covers furnished lettings – many household policies do not.
  
  
• 3.2 Mortgages
  If your property is subject to a mortgage, it is usually a condition of the mortgage that permission is obtained from the mortgagee to let or sub-let the property. It is your responsibility to ensure that the relevant permission is obtained. Your mortgage company may charge a small administration fee, and may want to see the proposed Tenancy Agreement before giving permission.
  
  
• 3.3 Sub-Letting
  If your ownership of the property is Leasehold it is important for you to satisfy yourself that:
  
  • 3.3.1 The intended furnished letting expires before your Lease terminates.
    
    
  • 3.3.2 The sub-letting is permitted under the terms of your lease and that you have obtained any consent required by your landlord or freeholder. We suggest that you supply us with a copy of your lease, as the proposed tenant is legally entitled to inspect it.
    
    
• 3.4 Service & Utility Companies (Telephone, Gas, Electricity and Water)
  Utilities companies will not accept any instructions from a third party on accounts. Therefore we are not able to advise the utilities companies of the change in occupancy at a property. It is your responsibility to contact suppliers of Gas, Electricity, Telephone and Water, to ensure accounts are closed on the start date of a tenancy and reopened at the end of a tenancy. We are able to provide a meter reading service but cannot be held liable for any inaccuracies. We inform new tenants in writing of their responsibility to notify the Service Companies if they wish to maintain the accounts, and of their responsibility to close the accounts on termination of the Tenancy Agreement.
  
  
• 3.5 Televisions.
  If a Tenant brings a television onto the property they will be responsible for the purchasing of a television licence. However should a Landlord leave a television as part of the contents (listed or otherwise) the responsibility for the purchasing of the licence will then revert to the Landlord.
  
  
• 3.6 Council Tax
  You must inform the relevant Local Authority if you change address. Incoming tenants have the responsibility to inform the Local Authority for assessment of Council Tax. However, we advise landlords to write to the Council with the new tenant's details. You are responsible for council tax during any time the property remains unoccupied. It should be noted that the Landlord/owner also remains legally liable to pay the Council Tax on a property that is not the sole or main residence of the Tenant, or on a property which is let for a period of less than six months.
  
  
• 3.7 Property Condition
  You are responsible for maintaining the condition of the property (excluding damage by tenants) throughout the Tenancy. Thorough inspections of the roof, plumbing and wiring etc. are recommended. All appliances, including central heating, require checking and servicing. Details of maintenance contracts, certificates of guarantee and instruction manuals should be made available to the tenants and ourselves. The property should be in good decorative order inside and out. Gardens should be tidy and well cared for and adequate tools should be provided for their maintenance.
  
  
• 3.8 Safety Requirements
  There are three safety checks which should be carried out prior to tenants moving in, namely Gas, Electricity, & Fire/Furnishings safety. A ‘Landlord's Gas Safety Record' is required by law to be given to the tenant at the commencement of their tenancy and a further test must be carried out each year upon expiry and given to the tenant. Landlords also have a legal ‘duty of care' to ensure that all electrical wiring, fittings and appliances are safe to use, and that all soft furnishings comply with the legal safety requirements (please ask us for details). We therefore recommend that all three safety checks be carried out. Lawson Rutter can arrange these initial checks for you on the basis that you will pay all contractors costs.
  
  The Gas Safety (Installation and Use) Regulations 1994 (as amended)
  
  All gas equipment, pipework and appliances must accord with these Regulations including annual inspection by a Corgi registered installer and records maintained of work undertaken. A safety inspection must be completed satisfactorily prior to any letting and a Report provided to the Tenant and/or displayed at the Property. You warrant to Lawson Rutter that, the Gas Safety (Installation and Use) Regulations 1994 as amended by the Gas Safety (Installation and Use) (Amendment) Regulations 1996 and (Amendment) (No.2) Regulations 1996, have and will continue to be fully complied with by you, as the Landlord. Please note, failure to comply with these Regulations is a criminal offence.
  
  The Electrical Equipment (Safety) Regulations 1994
  
  These regulations apply to the electrical supply along with new and second-hand equipment including mobile and fixed appliances e.g. kettles, irons, vacuum cleaners, cookers, etc. and require that the property and electrical contents are in safe working order. You must arrange for such checks to be carried out in accordance with the Regulations.
  
  The Furniture and Furnishings (Fire) (Safety) Regulations 1988 (as amended)
  
  You, as the Landlord, warrant to Lawson Rutter that all furniture and furnishings in the property to be let and included in the letting (whether originally provided or added during the Tenancy) fully comply with the requirements of the Consumer Protection Act 1987 and all statutory instruments made under it including in particular the Furniture and Furnishings (Fire) (Safety) Regulations 1988 as amended by the Furniture and Furnishings (Fire) (Safety) (Amendment) Regulations 1989 and 1993. Please note, failure to comply with these Regulations is a criminal offence.
  
  
• 3.9 Inventories
  We strongly recommend that landlords appoint professional inventory clerks to prepare full inventories on the condition of every item, fixture, fitting, wall, floor, ceiling, garden and balcony. This involves some additional cost, which we think is justified. An inventory should be prepared immediately prior to the commencement of a Tenancy and immediately upon its expiry. Under the terms of your tenancy agreement you are responsible for the cost of any "check-in" report and the tenant is responsible for any "check-out" report.
  
  
• 3.10 Stamp Duty
  It is a legal requirement to have some contracts stamped in line with The Stamp Act of 1891 Section 15 as amended by the Stamp Duty (Land Act), which came into force on 1st December 2003. It is your responsibility to ensure that the original tenancy agreement is stamped and kept safe. You must provide us with a copy of the stamped agreement. The address to which you should send the tenancy agreement for stamping is H M Revenue & Customs, Stamp Office, Somerset House, London, WC2R 1LB.
  
  

4. OUR CHARGES

• 4.1 The Estate Agents Act 1979
  Under this act we are unable to complete a tenancy agreement on your behalf unless we have proof that you have been notified of our fees. Details of our fees are set out below. By signing our terms and conditions you hereby confirm your knowledge and acceptance of our fees.
  
  
• 4.2 Once we have found a tenant acceptable to you or accepted by us on your behalf commission fees are charged and due as follows:
  
  
  • 4.2.1 TENANT INTRODUCTION SERVICE
    8% of the total rent reserved under the terms of the tenancy agreement payable on commencement, with a minimum fee of £500. This fee is payable in full upon receipt of a signed tenancy agreement sent by us from the tenant. In addition we charge a fee of £75 for preparing the Tenancy Agreement and £50 for arranging Landlords gas, electricity and fire/ furnishing certificate, where applicable.
    In the event that:
    
    
    • 4.2.1.1 the tenancy continues after the end of the initial term; or
      
      
    • 4.2.1.2 a new tenancy is entered into with the same tenant upon expiry of the initial term, or any subsequent term or within six months of expiry of the initial term or any subsequent term; or
      
      
    • 4.2.1.3 a new tenancy is created with a third party associated directly or indirectly with the outgoing tenant,
      
      
    • 4.2.1.4 commission will be payable to us, whether or not we have been involved in further negotiations with the tenant, in accordance with this clause.
      
      
  • 4.2.2 FULL MANAGEMENT SERVICE
    5% of any rent collected, payable monthly with a minimum monthly fee of £50, plus the charges listed in the above.
    
    In the event that:
    
    
    • 4.2.2.1 the tenancy continues after the end of the initial term; or
      
      
    • 4.2.2.2 a new tenancy is entered into with the same tenant upon expiry of the initial term, or any subsequent term or within six months of expiry of the initial term or any subsequent term; or
      
      
    • 4.2.2.3 a new tenancy is created with a third party associated directly or indirectly with the outgoing tenant, commission will be payable to us, whether or not we have been involved in further negotiations with the tenant, in accordance with clause 4.2.1
      
      
• 4.3 Unless otherwise agreed by us in writing, where possible, commission payments will be deducted from rent payments received by us from tenants.
  
  
• 4.4 Should you sell the property to a tenant introduced to you by us or to any third party directly or indirectly associated with such tenant during or at any time in the period of twelve months after the tenant ceases to occupy the property, we shall be entitled to a commission of 2% of the total sale price, payable on completion.
  
  
• 4.5 In the event that the tenancy is terminated by the tenants before the agreed term, we will make every endeavour to find alternative tenants. If, after a reasonable time has elapsed, we have been unable to find alternative tenants, then fees are refundable subject to a minimum charge being as equivalent to a six month let and pro-rata thereafter
  
  
• 4.6 If for any reason additional services are required of us, such as attendance your solicitor's office, appearances before a rent assessment committee, court or tribunal, or involvement in any matters of litigation, a separate fee will be chargeable to you at the following rates set out in section 5 below.
  
  
• 4.7 All our fees and commissions are subject to VAT at the rate prevailing from time to time.
  
  

5. GENERAL INFORMATION

• 5.1 LEGAL/TAX ADVICE
  It must be stressed that this booklet is intended as a brief guide only. Lawson Rutter cannot be held liable for any legal inaccuracies or omissions contained herein. We advise our clients to take appropriate professional advice.
  
  
• 5.2 INSTRUCTIONS TO SOLICITORS
  You, as the Landlord, will be informed of any arrears or breaches of the Tenancy brought to our attention. However, if legal action is required, you will be responsible for instructing your own Solicitor and for all fees involved.
  
  
• 5.3 LANDLORDS RESPONSIBILITIES
  The rental quoted to prospective tenants is inclusive of all outgoings for which landlords are legally responsible. This includes the payment of ground rent, service charge/maintenance costs, buildings insurance, mortgage repayments etc. The landlord is responsible for informing the relevant authorities of any change of tenancy (e.g. Water Rates and Council Tax).
  
  
• 5.4 DATA PROTECTION
  All information held on file will be held in line with the Data Protection Act 1998. However you hereby authorise us to provide your contact details to the Tenant/occupants of the property and to any utilities companies where appropriate. Please note that this will include all telephone numbers including mobiles unless otherwise instructed in writing by the Landlord.
  
  
• 5.5 HOUSES IN MULTIPLE OCCUPATION
  We are unable to apply for licenses for an HMO for Landlords and strongly recommend that if your property meets the criteria of being an HMO you ensure you have complied with the new legal requirements as the penalties are severe. In brief as a guide your house may be a licensable HMO if you have five or more persons residing in the property, which consists of two or more families, and the house is three or more storeys (including habitable basements). If you are in any doubt as to whether your property is an HMO further information is available on the communities and government website http://www.communities.gov.uk/index.asp?id=1151996. Please note, criteria for HMO's may vary between local authorities. It is your responsibility to ensure compliance with the relevant legislation.
  
  
• 5.6 CHANGES IN TERMS
  We reserve the right to change the terms and fees quoted in this agreement upon giving one months notice in writing.
  
  
• 5.7 POSSESSION
  Section 21 of the Housing Act 1988 provides Landlords with rights of repossession at the expiration of an assured shorthold tenancy provided the Landlord has given the Tenant at least two months notice stating that repossession is required. Similarly two months' notice is required to gain possession of Ground 1 Assured Tenancies and Statutory Periodic Tenancies. It is therefore imperative that a Landlord intending to repossess their property at the expiration of a tenancy gives appropriate notice in the prescribed form in writing prior to the expiration of the tenancy.
  
  
• 5.8 REFERENCES
  Unless specifically instructed otherwise (and agreed by us in writing) all references for tenants will be obtained from Maras, a specialist referencing company. We make a charge of £25 inclusive of VAT for this service, which is charged to your tenant. We cannot be held liable for information obtained from Maras. We cannot guarantee the accuracy of any reference, nor can we accept any responsibility resulting from the non-disclosure or inaccuracy of facts from the reference provider. Notwithstanding the obtaining of references, the final decision as to whether the tenant is suitable is yours. You may require the provision of a guarantee in addition or in substitution to satisfactory references being provided. This is, however, a matter for you to arrange should you so require.
  
  
Copies of all references are available to Landlords upon request.


• 5.9 RENT COLLECTION AND REMITTANCE
  To allow for cheques to be cleared and standing orders to be checked, we allow up to 10 working days to elapse before transferring net rental payments to landlords.
  
  
• 5.10 THE TAXES ACT 1988 AND THE TAXATION OF INCOME FROM LAND (NON RESIDENTS) REGULATIONS 1995
  You, as the Landlord, are responsible for notifying HM Revenue and Customs of the tenancy. Where the Landlord of a property resides abroad, HMRC will hold us, as your Agents, responsible for the payment of any tax liability which arises on rents collected by us on your behalf, unless an Exemption Certificate is provided by HMRC pursuant to the Finance Act 1995. Lawson Rutter can supply you with an Exemption Certificate application form (currently NRL1) for you to complete and send to HMRC. However, the Certificate can take up to two months to be issued. Accordingly, if you, as the Landlord, are resident abroad it will be necessary for us to deduct monies at the appropriate rate and hold such an amount so deducted to your credit until either an Exemption Certificate has been received or until these monies are forwarded to HMRC which we are now obliged to do on an annual basis. Similarly, if at the present you live within the UK but subsequently move abroad, it will be necessary for us to commence this dduction from the time you leave this country. The monies deducted will be placed in a current account and will not earn interest on your behalf. The eventual liability for tax may be less than the amount forwarded to HMRC. In this event, you must liaise with HMRC directly and Lawson Rutter will not be liable for any refunds. You must let us know as soon as possible who will be dealing with your tax affairs in this country. Should you at present reside within the UK but subsequently move abroad, please let us know the name of your Accountants or Tax Advisers at that time.
  
  
• 5.11 RENT ASSESSMENT
  Under certain circumstances tenants may apply to the Rent Assessment Committee to have their rent assessed. The Committee may determine a rent higher or lower than the agreed amount. Lawson Rutter are unable to accept responsibility for any claim arising out of such an assessment, which becomes the maximum rent recoverable for the term of the tenancy.
  
  
• 5.12 COURTS AND TRIBUNALS
  Applications for fair rent or appearance before the Rent Officer, Rent Assessment Committee or any other court or tribunal will be by special arrangement only and will form the subject of an additional charge of £50 per hour plus VAT.
  
  
• 5.13 WAITING AT PROPERTIES
  In the event that you instruct a contractor to attend the property who is unable to collect keys from Lawson Rutter or give a specific date and time of call, we will charge waiting time at the property of £30 per hour plus VAT.
  
  
• 5.14 LANDLORD AND TENANT ACT 1987
  We are obliged to include your name and address on all rent demands to tenants. If your address is outside England and Wales, then Lawson Rutter must provide the Tenant with an address within England and Wales to which notices (including notices in proceedings), may be served to you. Unless otherwise instructed, if your address is outside England and Wales, we will use the address of Lawson Rutter for this purpose during such period as we manage the Property. Although we will use our best endeavours to forward any notices to you promptly, Lawson Rutter cannot accept liability for any loss or damage incurred either directly or indirectly from our actions in this respect.
  
  
• 5.15 TENANCY DEPOSITS
  The Tenancy Deposit Scheme (TDS), commenced on 6th April 2007 under the Housing Act 2004. The Act requires anyone – Landlord or Agent – who accepts a deposit for an Assured Shorthold Tenancy, to belong to a designated scheme to protect the deposit. Under the Scheme, disputes arising regarding the allocation of the deposit at the end of the tenancy will be handled by a process known as Alternative Dispute Resolution, or by the Courts if the parties so prefer. Existing tenancies (before 6th April 2007) will not be affected, nor will periodic tenancies which continue after that date. However, a tenancy commenced before, but renewed after, the 6th April 2007 is required to be included in the TDS. You, the Landlord, can choose between a two different kinds of authorised scheme:
  
  
  • 5.15.1 The Custodial Scheme
    Presently, there is only one custodial scheme, which is run by The Deposit Protection Service Ltd. You, as Landlord, pay the deposit money to the scheme administrators, who then pay it to you or return it to the Tenant, as appropriate, at the end of the Tenancy. This scheme is free of charge although if you require Lawson Rutter to administer this on your behalf we will make a charge of £50+VAT. For more information please visit:
    www.depositprotection.com
    
    
  • 5.15.2 Insurance-based Scheme
    You, as Landlord, are allowed to hold the deposit but you must pay a fee. The scheme administrators take out insurance so that the deposit can be refunded to your Tenant if you do not repay him the deposit. Lawson Rutter operate the Tenancy Deposit Solutions Limited scheme. This scheme is owned jointly by the National Landlords' Association and Hamilton Fraser Insurance, and is aimed mainly at Landlords. For more information please visit: http://www.mydeposits.co.uk. We will organise the payment of your tenant's deposit under this scheme. You must pay our fee of £75 plus VAT for organising this and any other charges applicable in respect of the scheme. These schemes only apply to tenancies in England and Wales.
    
    
• 5.16 DAMAGE DEPOSITS
  These will normally be equivalent to six weeks rent. However, in certain circumstances, it may be necessary to accept the equivalent of one months rent. Where we are managing a property, we will, subject to managing from the commencement of a tenancy, give our professional advice on any proposed deductions from the deposit in line with the Tenancy Agreement and Inventory "check-out report", to the best of our ability. Should these suggestions not be acceptable to either the Tenant or the Landlord we will refrain from any further involvement and, if agreement is not reached between the Tenant and the Landlord, the deposit will be arbitrated in line with the TDS. Please note we will endeavour to be accurate with assessing costs but cannot be held responsible for incorrectly pricing damages or losses (especially personal artifacts, unusual items or antique pieces), as we are not specialists in this field. Once agreement has been reached on any deductions or replacements or compensation, the damage deposit will be dispersed accordingly.
  
  
• 5.17 ENERGY PERFORMANCE CERTIFICATES (EPC’S)
  From 1^st October 2008, landlords in England and Wales will be required by law to provide their new tenants with an Energy Performance Certificate (EPC). The landlord is responsible for ensuring a valid certificate is made available, even if a letting agent is managing their property. Once the certificate has been issued it is valid for 10 years, subject to any further legislation being introduced.