- Fees are calculated on the total rent as shown on the tenancy agreement and become due and payable on the signing thereof.
- Cosgroves will be entitled to the agreed commission if we let the said property, whether instructed verbally or in writing.
- Cosgroves shall be entitled to charge commission at the agreed rate in respect of any tenant directly or indirectly introduced by ourselves for however long the tenancy lasts.
- Cosgroves may deduct their fees and other monies due to them out of all monies coming into their hand by virtue of these terms and conditions.
- If the tenant directly or indirectly introduced to the client by Cosgroves purchases the property during a tenancy or within one year of the termination of a tenancy, we shall be entitled to a commission of 1.5% of the purchase price plus VAT
- In the event of the property being sold subject to and with the benefit of a tenancy, Cosgroves will look to the original owner of the property for the letting commission due for the introduction of the tenant for however long that same tenancy lasts (including extensions or the grant of a new tenancy to the same tenant).
- Cosgroves reserves the right to vary quoted rates during the course of the tenancy on giving three months prior to notice in writing.
- Cosgroves shall not be liable for any rent or non-payment of rent or any other liabilities on the part of or incurred by the tenant, or for any outgoings payable on behalf of the landlord if insufficient funds are available and/or they have not undertaken to discharge them pursuant to these terms and conditions.
- Cosgroves shall not be liable (either directly or indirectly) for any deficiency, loss or damage to the premises, it’s fixtures, fittings and contents, however caused, whether included in the inventory or not.
- Cosgroves shall not be liable for the management or protection or security of any property before it is let or after the termination of the tenancy, or if unlet between tenancies, whether or not a key has been deposited with us. However, we will endeavour to make all reasonable efforts to ensure suitable security has been arranged.
- The client agrees to pay Cosgroves any other charges arising from any invoices, which may at any time be held to the clients account.
- The client accepts that Cosgroves will not pay any bills on the client’s behalf unless sufficient funds are available in advance particularly when a property is unattended.
- Cosgroves shall not be held responsible for injury to persons or property arising out of the conditions of the premises or any hazard in or about the premises. Clients are advised to take out all appropriate insurance cover.
Managing Agents’ Duties:
- Having instructed Cosgroves, (the agent) to be his general agent and for the purpose of enabling the agent to perform efficiently, the duties of such general agency hereby appoint the agent to be his attorney and on his behalf but at the sole discretion of the agent to do and execute all and every one of the following acts, namely: To effect minor repairs up to the agreed limit specified in the agent’s instructions.
- To inspect the property and forward a written report to the landlord (additional visits and the final ‘check out’ of the tenant will be charged in accordance with the scale of fees above).
- Provided that the landlord has not made alternative arrangements and notified the agent to this effect in writing and providing that the client’s account is in credit, with available funds, to pay all rates, charges, expenses and other outgoings as demanded from time to time payable in respect of the property which is the subject of these terms and conditions to the extent that they are not payable by and recoverable from the tenant.
- To demand and recover from the tenant all rents and sums of money payable and to take all necessary steps whether by action distress or otherwise to recover any rent or sum of money in arrears.
- To grant or renew tenancy agreements at the same rent as previously authorised by the landlord or as determined by the agent to be in the landlords best interest.
- To sign and give notices to any tenant to quit or repair or to abate a nuisance or remedy a breach of covenant or for any other purposes whatsoever and to accept surrenders upon whatsoever terms the agent thinks fit.
- To commence any legal action or legal proceedings in any court or to submit to arbitration for any purpose necessary to preserve the owner’s right and property and to defend all actions or other legal proceedings that may be brought against the owner in connection with the property. The landlord will be responsible in meeting the cost of any action commenced on his behalf.
- To warn off and prohibit and if necessary proceed against all trespassers on the property.
- In general for the purposes of the agency to perform every other act usually performed by letting or managing agents to all intents and purposes as the owner himself could do personally, the owner hereby agreeing to ratify whatsoever the agent shall do in relation to the property in accordance with these terms and conditions.
- To deduct income tax at the appropriate rate and remit the same to the Inland Revenue upon demand unless an alternative authorised agent has been appointed by the landlord where this is appropriate as a result of the client’s residence overseas.
- To collect deposits and protect the same in a government approved protection scheme upon the owner’s behalf and at the agents discretion to return any sum the agent considers due to the tenant. All interests upon the said deposit where held by Cosgroves under an insurance based scheme shall belong to the agent.
- The client undertakes to ratify whatsoever the agent shall lawfully do by virtue of these terms and conditions and to indemnify the agent against all costs and expenses properly incurred by the agent.
The client acknowledges and accepts that Cosgroves must perform their duties within the provisions and constraints of the legislation for the time being in force in respect of residential tenancies and in particular the client acknowledges and accepts:-
(a) That the client will be responsible for repairs to the structure and the exterior of the property (including drains, gutters and external pipes) and for maintaining and repairing the installations for supplying gas, water and electricity and also sanitation appliances and the space and water heating appliances in the property.
(b) There are statutory rules governing in the way in which tenancies can be determined and vacant possession of residential properties lawfully obtained and that periods of notice must be given in order to properly terminate a tenancy and that it may prove necessary for possession proceedings to be instituted before vacant possession of the property can be lawfully obtained.
Guidance Note for Landlords:
- Where the property being let is subject to a mortgage, it is your responsibility to inform the Building Society of the proposed let. If the property is leasehold consent from the Head Landlord, freeholder or agent may be required. In each case it is your responsibility to ensure that any conditions or requirements stipulated by (as the case may be) the mortgagees, Head Landlord, freeholder or agent are observed and fulfilled.
- Unless otherwise agreed, the rent quoted to the tenant by us on your behalf is inclusive of all outgoings for which you are responsible (i.e. ground rent, service charges etc.)
- Unless otherwise agreed, the rent quoted to the tenant by us on your behalf is exclusive of all outgoings for which you are NOT responsible (i.e. water rates, gas, electricity, telephone and fuel oil if any).
- It is your responsibility to maintain Building and Contents insurance and to inform your insurers of the proposed let. Failure to notify may mean that subsequent claims may be rendered invalid.
- It is your responsibility to have post re-directed to your new address and to close the telephone account. Telephone companies will only accept notice from the subscriber. We will arrange for the tenant to complete application forms to take over the water, gas and electricity supplies.
- It is important that all paint work, floors, carpets, curtains and furnishings should be clean before a tenant moves into the property and they should be cleaned if necessary.
- A furnished property should be fully equipped with the exception of table and bed linen. Blankets or duvets and pillows should be supplied.
- All electrical and gas appliances should be serviced and tested. It is recommended that service contracts be taken out on appliances especially central heating. Instructions and guarantees should be supplied
- All personal and treasured possessions of real or sentimental value should be removed.
- A list of useful information should be provided incorporating appliance instructions, main stop cock and meter locations, dustbin collection times etc
While it is not recommended that you leave too many ornaments, pictures and possessions in the property it should still retain a lived in appearance. A bare and minimally or badly furnished house does not encourage a sense of responsibility in tenants. The tenants who move into a pleasant and well equipped home are much more likely to care for it. The following notes provide you with a guide as to how to furnish your home for tenants.
- Throughout the property: Carpets, curtains, and lampshades.
- Sitting room: Lounge suite and chairs, occasional tables.
- Dining table and chairs, matching and easily replaceable sets of cutlery and place mats for 6 or 8.
- Kitchen: Refrigerator and cooker, matching and easily replaceable dinner and tea sets for 6 or 8, glasses, 3 or 4 saucepans, frying pan, tea pot, kettle, toaster, 1 or 2 casserole dishes with lids, usual kitchen utensils, set of various knives, chopping board.
- Bathroom: Bath and toilet mats, shower curtain where shower is fitted, toilet rail and toilet roll holder and mirror.
- Bedrooms: Mattress covers for all beds, pillows, blankets or duvets, chest of drawers, wardrobe.
- Garden: Should be left neat and tidy with enough basic tools to maintain the garden.
- Garage: Should be empty and clean.
- Keys: One set of keys should be supplied to each tenant, plus a set to ourselves. It is useful to note the make and number of all keys.
- Moving day: The property should be clean and tidy with all services connected.
Income tax is applicable to all owners and you should take professional advice (e.g. from an accountant, a solicitor or the tax department of your bank). You should keep all the rent statements we send you together with all the invoices relating to outgoings. If you wish you can instruct our Accounts Department to prepare statements and negotiate settlements with the Inland Revenue on a time basis for a small fee.
The following provides an indication of the main items which are presently tax deductible from rents received from property letting:
- Interest on mortgage
- 10 % of gross rent for fair wear and tear for furnished properties
- Agents and Management Fees
- General and Water rates
- Maintenance of central heating and appliances
- Insurance of appliances, central heating and the cost of spares
- Insurance of household contents
- Repairs carried out during letting
- Any outgoing for which the landlord is responsible during letting i.e. Upkeep of the gardens or in the case of a flat, stairs and landings.
- Cost of transferring services to the name of the tenant
- Inventory and legal costs
Tax Management Act 1970 Section 78:
- Where the landlord of furnished property resides abroad; Inland Revenue will hold us, as agents, responsible for the payment of any tax liability which arises on rents collected by us on your behalf.
- For resident’s abroad, it will be necessary for us to deduct income tax at the appropriate rate from the rent and hold that amount until the tax liable has been agreed by the Inspector of Taxes.
- If you presently live within the U.K. and then subsequently move abroad, it will be necessary for us to commence this deduction from the time you leave the country. NB members of the armed forces are generally exempt.
- We can only accept exemption from our liability from the Inland Revenue. If we are instructed we will calculate your liability, if any, negotiate a settlement with the Inland Revenue and if appropriate, deduct on a monthly basis.