Terms and Conditions

MOSTYN MANAGEMENT LTD.

LETTINGS and PROPERTY MANAGEMENT

TERMS and CONDITIONS

STANDARD SERVICE (new lettings)
Inspect property and advise on possible rental value etc. Take and prepare details, advertise locally where appropriate, arrange appointments to view and accompany applications to unoccupied accommodation. Obtain references in order to assess suitability as Tenant/s.
PLEASE NOTE: whilst every precaution will be taken to obtain suitable Tenants, no liability is accepted for any information or representation concerning prospective Tenants, nor is responsibility accepted for the suitability or otherwise of such Tenants or liability for any loss or expense however caused by the Tenant.

LETTING SERVICE ONLY
The fee for this service is 7.5% (plus VAT) of the rental income for the initial term of the tenancy.
Deposit: the equivalent of six weeks rent is collected at the start of the tenancy as a deposit against dilapidations. The deposit must by law be entered into one of the government approved deposit schemes. This means that we must hold the deposit as “Agents for the Landlord” to comply with the terms of the scheme.
Refund of Commission: Where an agreement for one year or longer is arranged and the Tenant gives Notice and. leaves before the end of the term under a break-clause, then a credit of up to three months’ letting fee (excluding VAT) will be allowed and every effort will be made to re-let the property quickly at a reduced rate of 5% (plus VAT). Refunds will not be given if the tenancy is for less than one year.
Tenancy Agreement: A tenancy agreement drawn up using our standard form. Should the Landlord wish to use a separately drawn up agreement, then the Agent will not be responsible for the costs incurred or disputes arising from such agreement. Assured Shorthold tenancies are normally drawn up with an additional clause covering the procedure at the end of the initial term of the tenancy. This clause places the tenants under obligation to give two months notice thereafter.
Inventories: It is essential that the Tenant has a copy of an inventory of fittings, furniture and effects and their respective condition at the start of the tenancy: the inventory will be used to check the condition of all items at the end of the tenancy in order to release the security deposit. Mostyn Management Ltd. can arrange for inventories to be prepared for a fee commensurate with the size of the property.
PLEASE NOTE: if the Landlord supplies his or her own inventory, then we cannot enter into any arbitration which may arise on its checkout.
At the end of a tenancy, in the event that the dilapidations amount to a sum in excess of the deposit held, then the Agent accepts no responsibility for the costs of carrying out repairs or replacing items, nor accepts any responsibility for any legal costs relating to any action brought against the Tenant.
Landlords must appreciate that fair wear and tear may necessitate some redecoration and repair or renewal of fixtures and effects before their property can he re-occupied.
Utilities: the Agent will not be responsible for taking any meter readings or subsequently advising suppliers unless specifically instructed and paid so to do.

LETTING and MANAGEMENT SERVICE
The fee for full management is 7.5% (plus VAT) of the rental and the letting fee is 5% (plus VAT) of the rent for the initial term of the tenancy. While the 5% letting fee can be deducted from the initial rent/s, in practice it is usual to charge 12.5% of the rent (plus VAT) during the initial term, dropping to 7.5% thereafter. The net result is the same, but the cost is thereby spread over the initial term of the tenancy.
The foregoing applies generally to new furnished and unfurnished lettings where Mostyn Management Ltd introduces Tenants. However, Mostyn Management Ltd. also offers rent collection and management services in respect of the following: –
Business and Commercial Premises: Premises (factories, warehouses and shops and upper parts) let on Lease and generally subject to the provisions of the Landlord & Tenant Act, 1954. Charge for basic management and rent collection is usually 7.5% (plus VAT) of the rent as and when paid. Where high levels of rent are involved the collection commission is open to negotiation.

Block Management:
this refers to blocks of flats, or similar. For a fixed annual fee per flat (major works not included, see page 5), we provide the following services:
1. Setting up contracts to maintain and clean the common parts and gardens
2. Assessing the maintenance needs of the property, including those dictated by the leases
3. Obtaining the necessary tenders in order to set an annual budget for the service charges
4. Reporting to the lessees, owners and accountants on the previous year’s accounts
5. Invoicing for and collecting the service charges and ground rents
6. Implementing the budgeted maintenance work for the year
7. Responding to day-to-day maintenance issues that may arise
8. Attending meetings with the residents/owners and supervision of contractors.
9. Acting on behalf of the freeholder in relation to implementation of the leases and other related negotiations


PROCEDURE FOR RESIDENTIAL MANAGEMENT

Rent: Rent is collected for the appropriate period (e.g. weekly, monthly, quarterly) and paid into a. separate Clients bank account. Payments are made to the Landlord monthly on a ‘batch run’ computerised basis. The usual method of payment is by Hexagon BACS direct into the Landlord’s bank account. The amount will be equivalent to the rent less commission and other outgoings (see below).
Outgoings: The Agent will pay any outgoings the Landlord instructs to be paid, such as ground rents, insurance renewal premiums, costs of repairs, etc.: these payments will be shown as a disbursement on the monthly rental statements. Although every effort will be made to check accounts please note that the Agent is entitled to accept and pay without question all demands and accounts that appear to be in order. The Agent cannot he responsible for confirming the adequacy of any insurance cover or for the verification of maintenance/service charges or estimates where applicable. If the Landlord wishes the Agent to pay accounts such as these then he or she must ensure that the relevant invoices are sent direct to the Agent.
Accounts: The Agent will submit a statement of account to the Landlord at the end of each monthly period, or quarter if only quarterly rents are involved. The statement will show all rent collected for the subject period, all outgoings, including commission and VAT and will be accompanied by relevant contractors invoices and, where applicable, a cheque for the balance. Statements will he sent to the Landlord or however the Landlord may direct.
Regulated and Statutory Tenancies: The Agent will keep a diary of effective dates relating to registered rents and will apply for review of registered fair rents at the appropriate time.
Fixed Term Tenancies: The Agent will keep a diary showing the expiry dates of tenancies and will take appropriate steps where necessary to arrange new agreements or check inventories, subject to Landlord, instructions.
Commercial and Business Tenancies: The Agent will keep a diary showing the dates of rent reviews and expiry dates of leases and, subject to obtaining the Landlords instructions, will trigger rent review or serve the Tenant with the appropriate Notice to Quit and prepare Schedule of Dilapidations if required.
Breach of Agreement: The Landlord will be advised of any arrears of rent or breach or non-performance of the terms of the tenancy agreement, which have been brought to the Agent’s attention. If legal action is necessary then this will be instituted upon instructions from the Landlord who will be responsible for all costs and fees notwithstanding that the Court may award all or part of the costs against the Tenant.
Stamp Duty: If civil proceedings are instituted the tenancy agreement may have to be stamped and the costs of stamping will be the liability of the Landlord.

REPAIR and REPLACEMENTS
Minor Works: The Agent will deal with day-to-day repairs where these are the responsibility of the Landlord under the terms of the tenancy agreement or by statute: the costs of such repairs will be paid from rental income.
Major Works: For major repairs and redecorations, etc. the Agent will, where necessary, prepare a specification and then obtain quotations for the Landlord’s approval prior to work commencing. If there are insufficient funds from rental income to cover the estimated costs, then the outstanding balance must be paid by the Landlord to the Agent before work starts.
Emergencies: In an emergency, or if there is a statutory requirement to do so, the Agent reserves the right to arrange for whatever work is deemed necessary without first consulting the Landlord if direct contact cannot be made.

INSPECTION and DEFECTS
The Agent will endeavour to carry out periodic inspections of furnished accommodation and of unfurnished flats and houses whenever the Tenant makes major complaints. Inspections will also be made during and on completion of major works. It will be appreciated that such inspections will only be in respect of obvious defects and cannot in any way amount to a structural survey: the Agent cannot accept responsibility for any hidden or latent defects.

TERMS of MANAGEMENT APPOINTMENT
The term of appointment will run from the date at which the letting of the property commences until the cessation of the tenancy agreement unless special arrangements have been made. The appointment can be terminated by either party giving to the other two months written notice. However, the Agent reserves the right to transfer the management of the property to an alternative competent Agent without prior notice should the original Agent he unable to continue to provide a full management service for any reason whatsoever.
Void Periods: The management service does not include property supervision when not let, although when re-letting periodic visits will be made as and when the Agent accompanies prospective Tenants to the property.
Vacant properties can be “managed” during a void period but this will involve the Landlord in an additional monthly charge depending on the level of work involved and the frequency of visits required. Some insurers require regular visits to vacant properties and for service supplies to be timed off and systems drained down: the Landlord will naturally be liable for any costs involved in meeting insurers requirements.
In the event of fire, storm, flood or other damage to the property the Agent, if instructed by the Landlord, will assume responsibility on the Landlord’s behalf to liaise with insurers, their loss adjusters or other authority that may be or become involved. This service will involve an additional fee.

TAX MANAGER’S ACT
In the case of properties where the Landlord is resident overseas, H.M. Inland Revenue hold the Agent responsible for payment of basic tax payable on rental income. In these circumstances, the Agent will retain tax at the basis rate (currently 22%) and pay it to the Inland Revenue. If the Agent deals direct with H.M. Inspector of Taxes, only details of rental income and expenses can be supplied to the revenue and personal allowances may be lost. Landlords are advised to seek professional help relating to tax. However, PLEASE NOTE, it will remain the Landlords’ duty and responsibility to give his or her tax consultant all the relevant information relating to income and outgoings.

ADDITIONAL FEES and CHARGES
Inventory Fees: We charge £50.00 for the first 3 rooms and £10.00 per room thereafter, plus Vat. This charge would be deducted from the first rental account to you.
Check Out Fees: We charge £35.00 for the first 3 rooms (on our inventories) and £5.00 per room thereafter, plus Vat.

Rent Registration: There is a nominal charge, currently £70.00 (plus VAT) to cover the costs of administration. However, a higher charge, on a time related basis, will be made if the Agent is instructed to represent the Landlord at a consultation with the Rent Officer or an appeal hearing before the Rent Assessment Committee (either written or in person).
Rent Reviews (Leases): The charge will include providing the Landlord with an approximate opinion of rental value, service of any notice required under the provisions of the Lease and negotiating with the Tenant or their adviser. Fees will be based on a percentage of the achieved increase in rent and will be agreed with the Landlord prior to commencement.
Lease Expiry and New Tenancies: The charge will include serving the appropriate Notice to Quit, providing the Landlord with an opinion of approximate rental value and negotiating with the Tenant or their advisor. Charges will be agreed with the Landlord at the commencement of the procedure and will be based on a percentage of the agreed new rent.
Major Repairs, Improvements and Redecoration:
‘The Agent will inspect and, where necessary, prepare a specification of works, obtain quotations and instruct the contractor on the Landlords behalf. Works will be inspected during their course and on completion. Charges based on 12½% (plus VAT) of the total cost of works.

INDEMNITY
The Owner (Landlord) undertakes to ratify whatsoever the Agent shall lawfully do by virtue of this agreement and indemnifies the Agent against all costs and expenses incurred by the Agent.

DISCLAIMER
The Agent will not be under any liability that may be imposed directly on the Agent by reason of any present or future statutory or similar provision unless responsibility is subject to express written instructions to the Agent and the indemnity above shall apply accordingly. The Agent in good faith undertakes the management of the property. Whilst using their best endeavours to deal with all matters, the Agent cannot be held responsible for any reasonable omissions or errors arising from this service.
This agreement does not give the Agent sole letting rights and the Agents fees only become payable once the Agent receives a signed agreement from the applicant who is willing and able to enter into a tenancy agreement. If the property is subsequently withdrawn from the letting market by the Owner after the Agent has a signed agreement, then the Agent is still entitled to receive its full or initial letting commission plus any fees incurred in preparation of a tenancy agreement and inventory.
The Agent will be entitled to the benefit of any interest earned on monies (if any) held by the Agent whilst carrying out its duties.