Agency Agreement

This agreement is made between the owner/s of the property as named in this Agreement and hereinafter called “The Landlord” and The Property Partnership (Scotland) Ltd “The Agent.”
There are two services available; Management and Let Only, the terms of which are detailed below:

The Property Partnership Management Service

 
This is our comprehensive management service, which includes:
  • Assessment of the property’s likely market rental value and any recommendations to maximise occupancy and revenue.
  • Advertising on The Property Partnership website and other selected websites.
  • Selecting and referencing tenants, conducting viewings and managing any negotiations relating to the lease (Tenancy Agreement).
  • Preparation and signing of the lease (Tenancy Agreement) and all other documentation required for the tenancy.
  • Collection of tenant deposits and ongoing rental payments.
  •  Undertaking regular inspections of your property to ensure the terms of the lease (Tenancy Agreement) are being adhered to.
  • Arranging any repairs or maintenance work at your rental property as directed by or in agreement with the Landlord.
  • Preparation and checking inventories.
  • Checking meter readings as tenants move in and out of the rental property.

The Property Partnership Let Only Service includes:

  •  Initial visit to the property to meet with the Landlord to discern individual requirements; discuss and indicate likely level of rent and market conditions.
  • Property particulars taken and marketing photographs instructed.
  • Advertising on The Property Partnership website and other selected websites
  • Viewings will be arranged and conducted with prospective Tenants.
  • Terms are negotiated with Tenants, subject to approval with the Landlord, references requested and checked.
  • Lease documentation is prepared and signed along with all other necessary documentation.
  • Collection of first month’s rent plus deposit – the negotiating fee is deducted from the rental payment with the deposit and the remainder of the first month’s rent being transferred to the Landlord.
  • Final readings of gas and electric meters.
  • Tenant is notified of your contact details.
  

Duties and Responsibilities:

Property Assessment
We will visit your property and assess its likely market rental value, taking account of location and condition of the property. We will also advise on any additional work required to maximise the rental income and marketability of your property.

Utilities
Prior to the Tenant moving into the property the Landlord must arrange for all final meter readings and outstanding utilities and internet/satellite providers’ final accounts to be settled. Thereafter, the Tenant will be responsible for all utilities used.

Council Tax
The Landlord should ensure that the Council Tax Department of Aberdeen City Council is informed that they are no longer resident at the property. Thereafter the Tenant will be responsible for all Council Tax due on the property throughout the term of the lease.

Legal Compliance

We will advise on and ensure compliance with the following legislation:

  • Gas Safety (Installation and Use) Regulations 1998 with regard to the inspection, maintenance, and keeping of records in respect of gas appliances in tenanted premises. Your rental property must have a valid, current Gas Safety Certificate prior to the commencement of the tenancy. We will require 2 copies of this certificate. We are able to arrange this service for you upon your written instruction.
  • 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 property.
  • Repairing Standard. The Repairing Standard under the Housing (Scotland) Act 2006 is in place to ensure landlords keep their properties in good repair and ensure that they meet their legal obligations. Within this,
    • the property must be wind and water tight and reasonably fit for human habitation
    • the structure and exterior of the property (including drains, gutters and external pipes) must be in reasonable repair and proper working order
    • the installations in the house for the supply of water, gas and electricity and for sanitation, space heating and heating water are in reasonable repair and proper working order
    • any fixtures, fittings and appliances provided under the tenancy are in reasonable repair and proper working order
    • any furnishings provided under the tenancy are capable of being used safely for the purpose for which they are designed; and
    • there is satisfactory provision for detecting and giving warning of fires.

Smoke Alarms – To comply with the Repairing Standard there must be at least one working smoke alarm on each floor of the property. Any smoke alarms installed from 3rd September 2007 must be mains-wired. Existing smoke alarms can be either mains powered or battery powered however, if broken, replaced alarms must be mains-wired. The requirements are different for HMO properties and further information can be obtained from the Aberdeen City Council website.

  • Electrical Equipment (Safety) Regulations 1994 and other relevant legislation with regard to the condition and safety of electrical equipment and appliances in tenanted premises. We are able to arrange appropriate compliance certification for your property, upon your written instruction.
  • Disability Discrimination Act 2005 with regard to the property.
  • Housing Health and Safety Rating System (HHSRS) with regard to the property.
  • House in Multiple Occupation (HMO). Where your property is let to 3 or more unrelated persons you are required to have an HMO licence in place and your property must comply with the appropriate regulations and standards prior to the commencement of the tenancy. Further information and all current charges can be obtained from Aberdeen City Council.

Any costs of compliance are the responsibility of the Landlord.

Advertising your property
We will advertise as required, on our own and selected websites, conduct viewings, select tenants, obtain references and deal with negotiations relating to the lease (tenancy agreement).

Lease preparation and signing
As Agent acting for you, the Landlord, we will prepare and sign the lease (tenancy agreement) and all necessary documentation ensuring compliance with the relevant legislation.

Tenant Deposit collection
We will collect a deposit of a minimum of one month’s rent from the tenant(s) along with the first month’s rent. This will be placed in an interest bearing bank account and returned to the tenant minus any agreed deductions for damages and deficiencies at the property at the end of the lease.

Inventory
Prior to the tenant taking occupancy of your rental property, an inventory must be taken. Inventory costs currently equate to 10% of monthly rental income. The inventory will include

  • a full description of the furniture and fittings and their condition and
  • the state of repair of the property.
Receiving ongoing rental payments
We will prepare and forward to the Landlord and/or their accountant financial statements on a monthly basis, remitting the balance of rental payments within one month of the due date, provided the same shall have actually been received.
The Agent may deduct from rental received all fees, commissions, charges and expenses payable or reimbursable to The Agent under the terms of this Agreement.
We will arrange payment of certain regular outgoings provided The Agent has agreed to do so separately in writing and that sufficient funds are held in credit

Repairs and Maintenance
Private Landlords are legally required to repair the properties they rent out in line with the Repairing Standard.
During the term of the lease of your property, we will instruct minor repairs or replacements to the property or contents (costing up to £150 plus VAT) and settle accounts from rental income received.
Major repairs will be notified to you, estimates obtained and instruction sought before any work is carried out. However if emergency repairs are required, it may be necessary to have these carried out immediately without prior instructions.
A management fee of 11% of the gross invoiced amount will be charged on any repairs, maintenance work or replacement items.

Communal repairs

Certain repairs in communal buildings must be paid by all owners in proportionate shares as referred to in The Tenement Scotland Act 2004. The deeds of your property will show how these costs are to be apportioned. Please be aware that the Agent will not instruct any communal works as part of this service. You will however, be advised that communal works are required.

Property Inspections
We will carry out an inspection of your property at regular quarterly intervals to ensure compliance with the terms of the lease (Tenancy Agreement) and any other relevant legislation. A copy of this report will be available to you.

Rent Arrears
We will take appropriate initial action in the event of rent arrears or any other breach of condition of the lease (Tenancy Agreement) in an effort to remedy the situation. Where such arrears or breach persists, we will inform The Landlord or The Landlord’s nominated representative who will be responsible for taking any further action and meeting any costs involved.
Whilst The Agent shall use their best commercial judgement in the selection of tenants and the execution of their Service hereunder, The Agent shall not under any circumstances be liable for non-payment of rent or any other outcome of the tenancy or for any resulting legal costs. Insurance policies are available to cover such risks.

At the end of the tenancy
We will liaise with the tenant on a routine basis, arranging renewals of the agreement or check-outs, re-advertising and re-letting to new tenants as appropriate.

Insurance
The Landlord will provide appropriate buildings and contents insurance for the property and be responsible for informing the Insurer of any changes in circumstance that may affect the terms of the policy.
The Tenant will be responsible for insuring his own belongings and also for taking out an ‘accidental damage’ policy cover for your property.
The Agent will not accept responsibility for frost or cold weather damage to water systems or subsequent damage caused thereby at any time, and The Landlord should therefore ensure that such risks are covered by insurance. It is recommended that adequate arrangements are made with a third party to protect water systems from cold weather.
Adequate locks on windows and doors should be provided in line with your insurance company’s guidelines.

Taxation
UK Landlords are required to pay tax on property income after offsetting any allowable expenses. If you are residing abroad then the Non‐resident Landlord’s (NRL) Scheme comes into effect. In order to avoid the Agent having to retain 20% of your monthly rent for tax purposes you would have to complete a NRL1 form (in the case of Joint Landlords‐ a form for each person is required) prior to leaving the UK or prior to you receiving the first month’s rent. These forms will be submitted to the HM Revenue & Customs who will then inform both you as Landlord and us that approval has been given for the rental income to be paid with no tax deducted. The HM Revenue & Customs will then ask you to complete a Self‐Assessment Tax Return once a year to establish whether you have any liability to UK tax.

A tax adviser will be able to assist you further in this matter.

Lender’s Consent
The Landlord will ensure that if the property to be leased is mortgaged, that the mortgage provider has been notified and the appropriate consents have been obtained.

Landlord Registration
The Landlord must be registered under Private Landlord Registration in Scotland.
Further information is available on the Landlord Registration website: www.landlordregistrationscotland.gov.uk

Unoccupied properties
Our Management Service does not include supervision of the property whilst unoccupied although visits may be made by staff in the process of re-letting. If there is a requirement within the conditions of the Landlord’s insurance policies, this should be discussed with the Agent and a separate charge agreed if this service is required.

Keys
We require a minimum of 4 set of keys for the property: 2 for the tenant (or one set of keys for each tenant named on the lease) and two retained by ourselves.

Proof of Identity
In order to comply with the Money Laundering Regulations, 1993, we are required to verify all Landlords’ identities. If the Title to the property which you are leasing is in more than one name then the above requirements are applicable to EACH person named in the title.
When you decide to use our services to lease your property, you will need to provide the following original documentation plus a photocopy:‐
Private individuals:

  • Two of the following (one which contains your photograph and the second detailing your permanent address):
  • Full National Passport
  • Full National Driving Licence
  • Pension book
  • Signed ID card of employer
  • Pensioners Travel PASS
  • Bank/Building Society passbook
For Companies
  • Copy of Company Certificate of Incorporation.
  • Evidence of instruction from a “Beneficial owner”
The Property Partnership Fees
Management Service:
Management commission 11% of rental received.
New Landlord registration fee: £150
Tenancy renewals £75
Repairs and replacement items: 11% of the gross cost
Advertising fees: £75 per tenancy
Preparation of inventory: 10% of the 1st month’s rental income.
Waiting Time at the property (if required for contractors, utility providers or other services that require access to the property) £15 per hour, including travelling time.

Let only service:
50% of the first month’s rental income (minimum £250).
Advertising fees: £75 per tenancy

HMO Licensing
£350 per HMO Licence Application, to include: Management of any works; Posting Official Notices and Joint HMO Inspections with Aberdeen City Council.

Sale of Property

In the event of a tenant or prospective tenant introduced by The Agent completing the purchase of the property at any time, a commission will be payable by The Landlord to The Agent equivalent to one percent of the selling price.

The Landlord hereby agrees to ratify all lawful actions taken by The Agent under this Agreement.
This Agreement will remain in force until terminated by service of three months’ notice by one party on the other provided that The Agent may terminate this Agreement forthwith and without servicing notice in the event of any action or omission by The Landlord or The Landlord’s representative which frustrates the continued performance of The Agent’s Service hereunder.

[/vc_column width][/vc_column_text]