Terms and Conditions for Residential Lettings Agency – Introduction & Rent Collection

Residential Lettings Agency Terms and Conditions (Rent Collection Service)

PROP.EST.02

These Residential Lettings Agency Terms and Conditions (Rent Collection Service) are for use by estate agents specialising in lettings and property management. They set out the Agency’s and the Owner’s responsibilities and provide for commission to be paid to the Agency. The Terms and Conditions, together with the Residential Lettings Agency Appointment Form (Rent Collection Service), create a contract between the Agency and the Owner.

This version of the Terms and Conditions should be used where the Agency will be collecting rent from the tenant during the tenancy but will not be dealing with day to day management of the property. If the Agent is to be responsible for managing the property, the “Fully Managed” version of the Terms and Conditions should be used instead. If the Owner is to collect rent and manage the property, the “Letting Only” version should be used.

The Terms and Conditions have been updated to reflect the requirement, effective from 1 October 2014, for lettings agencies to belong to an approved redress scheme for dealing with complaints. They also include a clause requiring the agent to take responsibility for the “right to rent” checks that are required under the Immigration Act 2014 in some geographical areas from 1 December 2014.

Clause 1 contains definitions and in some cases refers to information contained in the Appointment Form.

The “Commission” comprises the “Letting Commission” (paid for finding a tenant and completing a tenancy agreement) and the “Rent Collection Commission” (payable for the Agent collecting rent during the tenancy). The Commission is paid in monthly instalments. If the Owner terminates the contract during the Rent Collection Period (i.e. when a tenancy agreement is in place), the Letting Commission becomes payable in full. 

Clause 2 covers the appointment of the Agent.

Clause 3 sets out the duties of the Agent during the Introduction Period (when the property is on the market) and during the Rent Collection Period (when a tenancy agreement is in place). These include preparing particulars, vetting potential tenants, handling the tenant’s security deposit, collecting rent and chasing rent arrears.

Clause 4 sets out the duties of the Owner. These include obtaining any consents that may be required from the Owner’s insurers, landlord or mortgage company, and complying with statutory obligations regarding gas appliances, electrical equipment and fire safety.

Clause 5 deals with termination of the contract between the Agent and the Owner. There are different termination provisions for the Introduction Period (i.e. before a tenant has been found) and the Rent Collection Period.

Clause 6 relates to renewal or continuation of the tenancy. If the tenant remains in occupation after the expiry of the original tenancy, the Agent is entitled to receive additional commission (the “Renewal Commission”).

Clause 7 makes reference to the Agent’s complaints handling procedure and confirms which of the three approved redress schemes the Agent belongs to.

Clauses 8 to 12 contain standard legal interpretation wording and provisions regarding the service of notices and VAT.

Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.

These Residential Lettings Agency Terms and Conditions (Rent Collection Service) are in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes. 

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