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Residential Lettings Agency Terms and Conditions (Rent Collection Service)


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, which now reflect the changes introduced by the Fire Safety (England) Regulations on 23 January 2023 (which affect properties in England only), 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 Owner 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.

In respect of properties in England, security deposits for new or renewed tenancies caught by the Tenant Fees Act 2019 are to be capped at five weeks' rent for a tenancy with an annual rent under £50,000 or capped at six weeks' rent for a tenancy with an annual rent of £50,000 or more. 

Security deposits for assured shorthold tenancies in Wales are not currently capped but the Renting Homes (Fees etc.) (Wales) Act 2019 (in force 01 September 2019) gives the Welsh government the power to introduce caps in the future.

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 safety standards, 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 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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Residential Lettings Agency Terms and Conditions (Rent Collection Service) is part of Property Documents. Just £35.00 + VAT provides unlimited downloads from Property Documents for 1 year.

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