The Lettings Terms & Conditions of Business, Fees & Expenses for landlords

Tenant find only service, this would include:

• Advertising for tenants
• Accompanied viewings where appropriate
• Interviewing tenants & taking references
• Arranging Tenancy Agreement which will then be passed onto the landlord
• Collection the first month’s rent, which will then be passed onto the landlord after deducting our charges.

Fully managed service

This would include all points as mentioned above plus dealing with the day to day management i.e arranging for repairs and maintenance of the property and its contents as well as carrying out inspections.

Set up fees

A fee will be charged for setting up the tenancy when we are instructed on a full management or a tenant find basis. This fee will be charged each time a new tenancy is arranged. In the case of a tenancy renewal, a fee of £50+VAT will be charged to the landlord.

Other Information

Meridian is to act as your sole agent for any letting period to a tenant introduced by us. A period of 7 days notice is required, should you wish to terminate this agreement.

A fee of 50%+vat of one month’s rental income (£300+vat minimum fee applies) will be charged to the landlord should the landlord wish to terminate our fully managed service. This fee will also apply on periodic tenancy agreements. This fee will not apply should the tenant vacate the property & not return within 24 months.

Meridian must disclose any interest between a client and our firm to a prospective tenant: therefore please disclose to us in writing any family relationships with any member of Meridian. Meridian have your authority to appoint sub-agents where we think it desirable and references in this agreement to results being achieved through our agency will include a case where the results have been achieved through such sub-agents, Meridian expressly excludes and disclaims responsibility for any acts or missions of such sub-agents other than Meridian have expressly concurred. Meridian shall be liable for any commission payable to any such sub-agent.

In accepting the terms of this agreement, the client gives Meridian the authority to deduct from each monthly payment the appropriate proportion of their commission applicable to such monthly payment together with any agreed disbursements. A minimum monthly management fee of £50+VAT applies.

Meridian agrees with the client that, subject to Clause 10. It will collect the agreed rent from the tenant as per the tenancy agreement and pay the landlord via BACS to an agreed bank account. Rent must be cleared funds before the landlord is paid. Meridian deem in the best interest of the landlord but that its responsibility in this respect does not extend to taking legal action to recover any sums due or for the possession of the property.

Meridian agrees with the client to manage the property which includes the collection of rent, and instruct contractors to carry out repairs. Meridian will provide a Statement of Account upon receipt by us of each rent payment detailing any deductions made.

The client will reimburse Meridian all expenses properly incurred by Meridian in connection with the management of the property including (but without prejudice to the generality of the foregoing) any expenses incurred under the provisions of clause 6, 9 & 11.

The client will indemnify and keep indemnified Meridian from and against any and all loss, damage or liability whether criminal or civil suffered and legal fees and costs incurred by Meridian in the course of a conducting the collection or rent and management of the property and resulting from:

Any act neglect or default of the client or his agent’s employee’s licensees or customers. Any successful claim by any third party in respect of any matter arising from the collection of rent and management of the property provided that such liability has not been incurred through any defaults by Meridian in carrying out the terms of this agreement. Meridian shall have no responsibility to a tenant, lessee, or third party other than the client under the terms of this agreement.

In the event of contact with the client being impracticable or likely to cause delay the client authorises Meridian in the case of emergency to take reasonable steps to ensure the safety of the tenants and the property.

It is understood by the client that whilst Meridian will take all reasonable steps to demand and recover all rents and sums of money payable by the tenant Meridian cannot accept any responsibility for unpaid amounts due regardless or rent guarantee policies purchased by Meridian or the landlord.

The client authorises Meridian to obtain copies of keys for the property as and when required. Should a key need to be cut by Meridian a minimum charge of £5 per key will apply.

In the event that a sale of the property is negotiated between the landlord and tenant it would be considered that the introduction had been made by Meridian. In these circumstances commission will be payable to Meridian at the rate of 1.9% of the sale price, plus VAT at the current rate.

Should the landlord wish to sell the property during this agreement it must first be offered to Meridian on a first refusal basis. A minimum contract term of 12 weeks applies on a sole agency basis. In these circumstances commission will be payable to Meridian at a rate of 1.65% of the same agreed price, plus VAT charged at the current rate. The client confirms that he is the sole or join owner of the property and that he has the right to rent out the property under the terms of his mortgage or head lease. N.B. It is essential that you obtain your mortgage lenders consent to let your property.

Meridian shall have no responsibility to any tenant, lessee or third party other than the client under the terms of this agreement.

Interest is not paid on rent received by Meridian on your behalf, prior to producing a rent statement and passing monies either to your account or issuing a cheque. This also applies to monies held, on your instructions, for possible repairs etc.

Transfer of utilities

Where provided with the necessary information, such as names of suppliers and utility account numbers, Meridian will notify existing service providers and the local authority of the tenant's liability (if appropriate) for payment of the services and council tax during the tenancy.

The utility companies and the local authority should send the relevant forms to the new occupier(s) to be completed and signed and it remains the tenants' responsibility to ensure that a new account is opened in their name. Meridian cannot be held liable if services are disconnected or are not transferred by the utility companies.

At the end of the tenancy, we will contact the service companies and request transfer of responsibility for the service accounts.

Property repairs & condition

Meridian is not responsible for the condition of the property at any stage of this agreement. This responsibility lies solely between the tenant and the landlord. Should damage occur to the property during this contract and the deposit is needed for repairs any shortfall is the responsibility of the tenant.

Meridian will arrange for repairs to be carried out at the property however unless Meridian deem such works as urgent will seek the permission of the landlord. This will be by way of verbal, in writing or by email. Meridian will invoice the landlord and charge the landlords account accordingly.

Transfer of money to the landlord

Once we are in receipt of cleared funds from the tenant, we aim to transfer any money due to you within five working days.

In some cases it may take up to ten working days to process the payment. This is usual for all new tenancies for landlords using our fully managed and tenant find service. We are not responsible for any bank charges that you incur as a result of delays in payment.

Where you provide us with UK bank details, we use the BACS system to make payments to your account and do not charge for this service. Where we are required to make payment by alternative methods (Telegraphic Transfer, CHAPS, or cheque) we will pass on any costs incurred in doing this to you.

Inventory and check-in

Where instructed, Meridian will arrange for an independent contractor to draw up an inventory of your property's fixtures, fittings and contents, and compile a check-in report at the start of each tenancy. The cost of these will be the responsibility of the landlord. Charges vary depending on the size of the property, and an estimate of cost can be given on request.

Check Out

Where instructed, we will arrange for the tenant to be checked out against the initial inventory report at the end of the tenancy. The cost of this is borne by the tenant unless the tenancy agreement states otherwise.

Meridian does not accept liability for losses resulting from any errors or omissions within any inventory, check-in or check-out documents that are produced by a third party.

Deposit

The deposit will be held in accordance with the terms of the tenancy agreement. Under the terms of our Assured Shorthold Tenancy agreement, the deposit will be held by Meridian in accordance with the Housing Act 2004 and the provisions of the deposit protection scheme operated by The Dispute Service (TDS). Under this scheme, undisputed deposits must be released to the tenant within ten days of termination of the tenancy. Full details of the scheme may be found at www.thedisputeservice.co.uk. Meridian takes no responsibility for the failure of a deposit being registered where held by the landlord or an alternative appointed agent.

In the event that you, the Landlord, hold the deposit you warrant that you will protect the deposit in line with legal requirements and that you will be responsible for all fees and charges associated with obtaining membership to an authorised scheme (where required) and protecting the deposit itself. You further agree that you will fully indemnify Meridian against any claim by the tenant howsoever arising, as a result of your holding the deposit. You will be required to provide proof of your membership of an authorised scheme. Any interest earned on the deposit will be retained by Meridian.

The Gas Safety (Installation & Use) Regulations 1998

Under the above regulations, it is the landlord's responsibility to ensure that all gas appliances and the fixed installation are maintained in good order and checked for safety at least every 12 months by a Gas Safe registered engineer.

If Meridian is not provided with a valid certificate prior to the commencement of the tenancy, we reserve the right to appoint a Gas Safe registered engineer to inspect all gas appliances and their installations and carry out any remedial works where necessary. The cost incurred will be debited from the landlord's account.

If the tenant is remaining in occupation beyond the expiry of the original certificate and Meridian has not received a replacement valid certificate 14 days before the expiry of that original certificate, we reserve the right to appoint a Gas Safe registered engineer to inspect all gas appliances and their installations and carry out any remedial works where necessary. The cost incurred will be debited from the landlord's account.

The Electrical Equipment (Safety) Regulations 1994

The landlord is legally responsible for ensuring that the electrical installation and all appliances within the property are maintained in good order and regularly checked for safety by an appropriate registered engineer.

If Meridian is not provided with a valid certificate prior to the commencement of the tenancy, we reserve the right to appoint an appropriate registered engineer to make the necessary checks and carry out any remedial works where necessary. The cost incurred will be debited from the landlord's account.

Where the tenant is remaining in occupation beyond the expiry of the original certificate and Meridian has not received a replacement valid certificate 14 days before the expiry of that original certificate, we reserve the right to appoint an appropriate registered engineer to make the necessary checks and carry out any remedial works where necessary. The cost incurred will be debited from the landlord's account.

Furniture and Furnishings (Fire) (Safety) Regulations 1988 and (Amendment) 1993

The landlord warrants that he/she is fully aware of the terms and conditions of the above Regulations including any subsequent amendments or replacement Regulations (hereafter referred to as the Regulations). The landlord declares that all furniture presently in the property or to be included in a property to which this agreement applies, complies in all respects with the Regulations.

The landlord further warrants that any furniture purchased for the property after the date of this agreement will also comply with the Regulations for the duration of the tenancy and any Renewals.

Energy Performance Certificate (EPC)

All buildings in the private rented sector require an EPC. This certificate will remain valid for ten years. Landlords are required by law to obtain and make available a copy of the EPC, free of charge, to prospective tenants at the earliest opportunity and must provide the person who takes up the tenancy with a copy. Meridian can organise an EPC from an approved supplier at the competitive rate of £75 + VAT.

RENT GUARANTEE Optional Protection, subject to acceptance)

In support of our service for vetting prospective tenants financial covenant and general credit worthiness. If it turns out that a tenant falls into arrears for whatever reason, the agent guarantees the payment of certain limited rent for the landlords and will procure that this rent is paid for the account of the landlord. Our commitment to you is that in the event that within (see protection certificate) months of the start of the tenancy being the date upon which the tenancy agreement is stated to commence and provided that the date is within 60 days of the effective date of the reference certificate, there is any default in payments or the tenants referenced share the monthly rent or part thereof, we will pay monthly, in arrears.

Up to a maximum of (see protection certificate) per calendar month

Up to a maximum of (see protection certificate) payments (the first months rental being collected with the deposit and excluding the first month arrears) or until vacant possession has been gained, whichever is the soonest.

Payments will be made subject to any deductions agreed in the agency agreement. Deductions will also be made for any outstanding charges due from the landlord. In the event of payments being made under this warranty, all rights of the landlord to recover such sums shall be, and by signing the agency agreement are authorised to be, subrogated to the Agent in order to effect recover of sums paid (in the name of the landlord if necessary or expedient). Recovery of rents paid out shall be at the discretion of the Agent. This warranty is part of the service standard for our vetting service and you will receive immediate and automatic protection with the vetting service at no extra charge.

The owner appoints the Agent to administer the Property, to include the signature of the tenancy agreement, renewal tenancy agreement and all statuary notices relating to the tenancy, in the manner specified in clause 2 on the owner’s behalf in relation to the property which property is described in Scheduled 1 Part B of this agreement (“THE PROPERTY”)

The agent has authority to administer the property on behalf of the owner on such terms and conditions as seem to them expedient in this agreement and referred to in Schedules 2, 3 and 4 of this agreement.

Agent’s remuneration

The agent shall be entitled to and the owner shall pay within 7 days all reasonable costs, charges, commissions and expenses incurred by the agent and those properly and reasonably instructed by the agent on the owners behalf in the performance of the agents duties under this agreement and shall hold any balance from time to time to the owners order.

Termination of this agreement

This agreement shall continue for an initial period of at least six months and thereafter can be terminated by three months notice of termination in writing by either party, but cannot be terminated at any time while a tenant introduced or currently managed by the agent is resident in the property without the landlord agreeing to pay Meridian the release fee.

The level of service agreed in this document cannot be reduced at any time while a tenant introduced by the agent is resident in the property. All fee relating to the introduction of a tenant and any extension of the existing tenancy or a new tenancy agreement shall remain payable (irrespective of whether or not the agent involved with such extension or the grant of a new tenancy) whilst the tenant remains in occupation.

Fees

The commission for introduction of a tenant and any other expenditure referred to in this contract for the property shall be deducted from the first month’s rental payment if the letting only service is required. The owner agrees that any fee for the management and rent collection of the property, and any other expenditure referred to in this contract shall be collected monthly from the rental income, or as per paragraph 3.

Fee Increases

All fees are correct at the time of printing but the agent reserves the right to increase fees subject to a minimum of one month’s notices in writing being provided to the owner.

Housing benefit tenants

The owner will indemnify the agent any payments reclaimed by the local authority for any reason whatsoever. The owner also accepts that rent may be delayed and even cancelled by the council at any point. Rent payments may also be paid on a four weekly basis and the landlord agrees to pay any additional fees that the agent incurs in collecting payments through a third party.

Advertising

The agent reserves the right to place an advertising board outside the premises provided that this does not contravene the terms of any covenants or restrictions to the premises.

The client accepts that Meridian will not be held responsible for the condition of the property at any point during this agreement. This also includes any vacant periods. The tenancy agreement is a legally binding contract between the landlord and the tenant and Meridian act solely as the management agent and not as the landlord for the property. Should a property be damaged by a tradesman or tenant it is the landlord’s responsibility to pursue them for any repair costs incurred.

Property Inspections

The agent will complete a property inspection within the first 6 weeks of any new tenancy. The agent will then inspect the property every 6 months while a tenant under management by the agent is in occupation. Additional inspections required by the landlord will be charged at £25+vat. The agent will inform the landlord of any repairs required in writing within reasonable time however the inspection is of the agent’s opinion only and therefore is not responsible for any damage caused to the property due to undiagnosed faults. The agent would deem all electrical and plumbing faults to be classed as urgent and may employ a contractor to repair should the landlord fail to act. The agent would deem this in the interest of the landlord. Should a fault be viewed as dangerous to the tenant or any persons the landlord agrees for the agent to act immediately on the landlord’s behalf.

Commission and interest

Any commission, interest or other income earned by Meridian while carrying out our duties as agent for the letting and/or management of the property, for example by referrals to solicitors, EPC providers, contractors or inventory clerks, will be retained by Meridian.

Landlord’s resident outside the UK

The Non-Resident Landlords Scheme is a scheme operated by HM Revenue & Customs (HMRC) for taxing the UK rental income of non-resident landlords. The scheme requires UK lettings agents to deduct basic rate tax from any rent collected. You are considered to be non-resident if your usual place of abode is outside the UK, or you are absent from the UK for a period of more than six months.

You can apply to HMRC for approval to receive rents without tax being deducted. If your application is successful then once we have received written confirmation of their decision we will pay you the rent without deducting tax. Even though the rent may be paid to you without tax being deducted, it remains liable to UK tax and you must include it on your tax return.

Where a non-resident landlord does not have approval from HMRC, we charge £100 + VAT for submitting quarterly returns and an annual return. We complete the annual return and send you a certificate showing the amount of tax that we have paid on your behalf. No interest is paid to landlords on tax retentions held by Meridian.

Meridian must be provided with a UK residential address for service. If we are not provided with a UK residential address then we are obliged to assume that a landlord is non-resident and we will operate the provisions of the scheme. Meridian will also be obliged to state the landlord's correspondence address on the tenancy agreement as c/o Meridian, 297 Charminster Road, Bournemouth, BH8 9QP.

Where we do not deduct tax which should have been deducted under the scheme we are entitled to recover this money from you at a later date, along with any other costs that are imposed on us by HMRC.

Landlords who are resident outside the UK are not entitled to hold the deposit for the duration of the tenancy.

Declaration

I/we declare that I am/we are the sole/joint owner(s) of the Freehold/Leasehold property as stated above and that prior to the commencement of the tenancy all furniture and upholstered furniture, soft furnishings, beds, mattresses, pillows and cushions (if any) supplied to the property, comply (if appropriate) with the provisions of the Furniture and Furnishings (Fire) (Safety) Regulations 1988 and (Amendment) 1993, and warrant that the property complies with the Gas Safety (Installation and Use) Regulations 1998 and the Electrical Equipment (Safety) Regulations 1994.

Before accepting this agreement, you should carefully read all of the terms and conditions set out in this document. It is very important that you read and understand all of the terms and conditions that will apply to this agreement before entering into this agreement. Only accept this agreement if you wish to be bound by all of the terms and conditions it contains.