Terms and Conditions for Letting and Management of the Property
Welcome to Cribs Estates. These terms and conditions outline the rules and regulations for using Cribs Estates Ltd's services and our website at www.cribsestates.co.uk. By accessing this website, we assume you accept these terms and conditions. Do not use Cribs Estates services or website if you disagree with this page's terms and conditions.
In England and Wales, the law relating to letting and management of residential properties is complex and governed by several key pieces of legislation, as well as common law principles. Here are some of the main areas of law that you should be aware of:
- Housing Act 1988: This Act primarily deals with the regulation of assured and assured shorthold tenancies, including tenants' rights and landlords' responsibilities. It outlines the processes for possession and the grounds on which a landlord can seek to evict a tenant.
- Landlord and Tenant Act 1985: This Act establishes rights and obligations for both landlords and tenants, including conditions for the condition of the property, repairs, and the provision of services.
- Protection from Eviction Act 1977: This legislation protects tenants from being unlawfully evicted and requires landlords to follow the correct legal procedure for eviction.
- Tenants Fees Act 2019: This Act regulates fees that landlords and agents can charge tenants, aiming to make renting more affordable.
- Housing Health and Safety Rating System (HHSRS): Part of the Housing Act 2004, it ensures that rental properties meet certain health and safety standards.
- Management of Houses in Multiple Occupation (HMO) Regulations: These set standards for the management of properties rented to multiple tenants, including fire safety and hygiene.
- Leasehold Reform Acts: These provide various rights to leaseholders, particularly concerning lease extensions and enfranchisement.
- The Deregulation Act 2015: Changes certain rules around tenancies to protect tenants from retaliatory eviction and introduced requirements such as providing tenants with the “How to Rent” guide.
- Consumer Rights Act 2015: Although primarily aimed at consumer transactions, it impacts letting and property management by reinforcing fair trading practices.
Landlords and property managers are recommended to comply with these regulations and stay informed about changes in the law. It may also be beneficial to seek legal advice for specific situations or issues that arise in letting and management practices.
1. Law and Regulations for Residential Letting in England and Wales
1.1 Various Acts of Parliament cover letting property. Both the Landlord and Agent (Cribs Estates Ltd) must adhere to these Acts before the Property can be let. Specifically, the Landlord and Agent (Cribs Estates Ltd) agree and acknowledge that:
1.1.1 The Agent (Cribs Estates Ltd) is obligated to ensure that both the Agent (Cribs Estates Ltd) and Landlord are legally entitled to offer a tenancy to any potential tenant(s) (the ‘Tenant’). If the landlord has a mortgage, they may need to obtain the lender’s permission before letting the property be sold. The Agent (Cribs Estates Ltd) can assist and offer advice on how to do this. If there are joint owners, the Landlord must inform the Agent (Cribs Estates Ltd) of who they are, and their permission will be needed in writing before the Agent (Cribs Estates Ltd) is authorised to act on the Landlord's behalf.
1.1.2 Under the Consumer Protection Acts, the Property must be fit for habitation at the point of letting. The Agent (Cribs Estates Ltd) will inspect the Property and inform the Landlord of any issues that may not comply with these laws. Any necessary repairs must be completed before the Agent (Cribs Estates Ltd) allows the Property to be let.
1.1.3 All furniture and soft furnishings provided by the Landlord as part of the tenancy must comply with the Fire and Furnishing Regulations 1988.
1.1.4 The Landlord must have a valid Gas Safety Certificate (CP12) and a valid Energy Performance Certificate (EPC) with the appropriate energy rating for the Property before the start of the tenancy. The Gas Safety Certificate is valid for one year, and an inspection must be arranged within that time. This requirement is under the Gas Safety Installation and Use Regulations 1994. If a valid certificate is not provided to the Agent (Cribs Estates Ltd) before the start of the tenancy, the Landlord agrees that the Agent (Cribs Estates Ltd) will arrange for this to be completed, with the cost charged to the Landlord.
1.1.5 The Low Voltage Electrical Equipment (Safety) Regulations 1989 and Electrical Equipment (Safety) Regulations 1994 address the safety of electrical appliances and wiring. Although these regulations are not a legal requirement, the Agent (Cribs Estates Ltd) reserves the right to instruct the Landlord to complete this.
1.1.6 The Landlord must inform their insurers once the Property is let. The Landlord should seek specific advice from an insurance professional about insurance coverage to ensure no liability in the event of injury to the Tenant or any visitors at the Property. The Agent (Cribs Estates Ltd) cannot provide advice on insurance matters, and it is the Landlord’s responsibility to ensure adequate coverage.
1.1.7 If there is a garden, the Landlord must indicate to the Agent (Cribs Estates Ltd) how they expect the Tenant to maintain it. This will need to become a condition of the tenancy. The Landlord should choose from the following options:
- The garden must be maintained according to the time of year. This is recommended if there is not much of a garden and it just needs to look tidy.
- The Tenant must mow the lawn, trim the hedges, and weed the garden regularly. This is recommended if there is a lawn and some hedges. The landlord must provide the garden tools the tenant will need for this, an RCD-protected electrical supply (an electrical supply with a circuit breaker to prevent electrocution), and safety gloves.
- The Landlord will provide a gardener and pay 75% of the cost, with the Tenant paying 25%. This is recommended if the gardens are landscaped. As the Office of Fair Trading states that Tenants do not have a long-term benefit from the garden, the Landlord should pay the greater share of the cost, as they receive the long-term benefit.
1.1.8 The Landlord must notify the Agent (Cribs Estates Ltd) of any restrictions in the lease or freehold documents about the Property. For example, clauses preventing parking caravans or commercial vehicles on the drive. The Agent (Cribs Estates Ltd) will not be liable for a Tenant's departure caused by a restriction that the Agent (Cribs Estates Ltd) was not made aware of. Additionally, the Landlord will remain liable for any Agent (Cribs Estates Ltd) fees and may be liable to the Tenant for damages.
1.1.9 From 1st July 2020, all properties must have an Electrical Inspection Certificate. A qualified person must conduct the inspection and test. It’s important to note that the proposed 5-year intervals are a “maximum.” If the report says it only lasts for one year (which is common), it will have to be inspected and tested within one year. It will be essential for landlords to ask how long the report will last (subject to there being no changes, of course) before they employ any electrician to conduct the inspection.
- The FIRST inspection and testing must be carried out:
- before the tenancy commences about a new specified tenancy (which is any tenancy or renewal, including a statutory periodic tenancy, which commences on or after 1 July 2020) or,
- by 1st April 2021 about an existing tenancy.
- The landlord must obtain a written report about the inspection and testing. The report must be given to the tenant within 28 days. A copy must be given to a local authority within 7 days if they request one. The report must be retained until the next test is due, and a copy must be given to the person carrying out the next inspection.
- Similar to a gas safety record, the most recent report must be given to any new tenant before that tenant occupies the premises, and it must also be given to any prospective tenant within 28 days of a request by them. If the report requires further investigative or remedial work, that must be carried out within 28 days or less if the report requires it to be less. A written confirmation from a qualified person that the investigative and/or remedial work has been carried out must be obtained.
- The written confirmation must be supplied to the tenant along with the original report (so they will now have a second copy of the same report) within 28 days. In addition, the local authority must be sent a copy of the original report and the written confirmation within 28 days, even if no request has been made (the two documents must be sent to both the tenant and local authority without any request being made within 28 days where further investigative or remedial action was required in the original report).
1.2.0 For all the HMO properties the landlord must have the HMO license in place for letting the rooms along with all the latest regulation and compliance to meet which relates to fire precautions and safety of the tenants. There are different rules for different boroughs which can be found on the councils websites. Cribs Estates specialises in HMO letting and management which our professional property managers can handle and help landlords to apply for the license and meet all the legal compliance of the house to become suitable for HMO lettings.
2. Initial Obligations of the Agent
2.1 The Agent (Cribs Estates Ltd) agrees that:
2.1.1 When marketing the property, the Agent will use their database of possible tenants, advertise the property in newspapers and/or on the internet, and put the details in their window. Cribs Estate reserves the right to use only appropriate marketing methods in current market conditions.
2.1.2 They will advise about the rent likely to be received for the Property and agree on a rental figure at which the Property will be advertised.
2.1.3 They will show possible Tenants around the Property. Accordingly, the Landlord must provide the Agent with a set of keys to all parts of the Property.
2.1.4 When a suitable Tenant is found, Cribs Estate (Cribs Estates Ltd) will conduct all necessary reference checks on the Tenant (and any potential guarantor). Specifically, the Agent (Cribs Estates Ltd) will:
a) Search to see if the Tenant has any County Court Judgments against them. b) Confirm that they are on the electoral roll at the address they have provided. c) Obtain proof of the Tenant’s current earnings. d) Ask the Tenant’s employer to confirm their employment will likely continue for the tenancy term. e) Obtain a reference from the Tenant’s current or previous landlord if applicable.
However, the Landlord acknowledges that references provide details of a Tenant’s past behaviour and do not guarantee future rent payments. Accordingly, no future liability attaches to the Agent (Cribs Estates Ltd) regarding Tenant references, provided the Agent (Cribs Estates Ltd) has acted with reasonable care and skill in performing their contractual obligations.
2.1.5 When a suitable Tenant is found, the Agent (Cribs Estates Ltd) will:
a) Ask the Landlord for instructions on the length of tenancy to offer and the start date of the tenancy. The Agent (Cribs Estates Ltd) will prepare an Assured Shorthold Tenancy in line with these instructions and get the Tenant to sign it. b) Prepare details of the condition of the property and a list of its contents. This list will be agreed upon with the Landlord and the Tenant. Alternatively, the Agent (Cribs Estates Ltd) reserves the right to instruct a third party specialising in inventory preparation to complete this. The charge will be passed on to the Landlord.
2.1.6 The Agent (Cribs Estates Ltd) will collect the first month’s rent and the deposit, ensuring the funds have cleared before the tenancy commences. The Agent (Cribs Estates Ltd) will hold the deposit in a Tenancy Deposit Scheme. The Agent (Cribs Estates Ltd) will take metre readings and notify utility companies and the local authority of the Tenant’s details.
2.1.7 The Agent (Cribs Estates Ltd) offers full management services, including market appraisal, advertisement of the property, viewings, reference checks, preparation of the tenancy agreement, collection of rent and deposit, monthly rent transfers, handling of rent arrears, arranging inspections and managing certificates, and arranging for necessary maintenance and repairs.
2.1.8 The Agent (Cribs Estates Ltd) excludes services for fire and insurance matters, legal and court matters, and building insurance claims from management. Third-party appointments will incur separate costs.
3. Obligations of the Landlord
3.1 The Landlord agrees to:
3.1.1 Pay Cribs Estates Ltd fees as outlined in the Agreement. Fees will be deducted from Tenant payments, and balances will be sent to the Landlord within seven days of the start of the tenancy.
3.1.2 Pay other fees or expenses in full within seven days of a demand for payment, including repayments for overpaid Housing Benefits and reasonable costs if prosecuted for managing an unlicensed House in Multiple Occupation.
3.1.3 Authorise the Agent (Cribs Estates Ltd) to sign legal documents, excluding court applications, on the Landlord’s behalf.
3.1.4 Provide contact details at all times.
3.1.5 Inform the Agent (Cribs Estates Ltd) of items not included in the new tenancy.
3.1.6 Pay legal costs and damages incurred from breaching legal responsibilities.
3.1.7 Specify tenant preferences, such as no smokers or pets.
3.1.8 Be responsible for inspections during void periods.
3.1.9 Pay reasonable expenses if the Landlord withdraws instructions or lets the property through another agent without informing the Agent (Cribs Estates Ltd), with a minimum administration fee of £500.00 + VAT per property.
4. Other Conditions
4.1 The Agent (Cribs Estates Ltd) has the right to assign this Agreement as long as the Landlord’s rights are not materially affected.
4.2 The Agent (Cribs Estates Ltd) retains the right to change the terms of this Agreement with two months’ written notice.
4.3 In Let-only properties, the Agent (Cribs Estates Ltd) will charge 4% + VAT for renewal contracts after the first year.
4.4 In managed properties, the Landlord cannot cancel the management contract while tenants from the Agent (Cribs Estates Ltd) occupy the property. If the Landlord wishes to cancel, the Agent (Cribs Estates Ltd) will give two months’ notice to tenants and manage the property until they vacate.
4.5 If the Landlord wishes to continue with the same tenant, they must pay a letting services charge of 6% + VAT based on the property’s gross annual rent, with a 4% + VAT renewal charge on each anniversary.
Terms and conditions applied.
Cribs Estates Ltd
236 Merton High Street London, SW19 1AU Tel: 0203 441 1571 Mobile: 0798 545 8793 Email: info@cribsestates.co.uk Web: www.cribsestates.co.uk