Residential Lettings Agency Terms and Conditions (Rent Collection Service)
These Residential Lettings Agency Terms and Conditions (Rent Collection Service) are designed for estate agents specialising in lettings and property management. They outline the responsibilities of both the Agency and the Owner/Landlord and specify how commission will be paid. Together with the Residential Agency Appointment Form (Rent Collection Service), they form the contract between the Agency and the Owner/Landlord.
This version of the Terms and Conditions should be used where the Agency will be providing a “Rent collection” service. This means the agent will be collecting rent from the tenant during the tenancy but will not be dealing with the day-to-day management of the property.
Other versions are available for “Fully Managed”, “Letting and Rent Collection”, or “Letting Only” arrangements.
This version of the Terms and Conditions take into account the Tenant Fees Act 2019, and the Renting Homes (Fees etc.) (Wales) Act 2019.
The Tenant Fees Act 2019 ban most upfront fees charged to Tenants in England.
The Renting Homes (Fees etc.) (Wales) Act 2019 also ban most upfront fees charged to Tenants in Wales.
The Terms and Conditions contain the following clauses:
Clause 1: contains definitions and key terms relating to the commission which includes two parts- the “Letting Commission”(paid for finding a tenant and setting up the tenancy agreement), and the “Rent Collection Commission”(paid for agent collecting rent during the tenancy). The commission is paid in monthly instalments. If the Owner cancels the contract during the Rent Collection Period ( while the tenancy is active), the full Letting Commission becomes due immediately.
Clauses 2 and 3: outlines information about the Agent and communication and contact details.
Clause 4: outlines the appointment of the Agent.
Clause 5: explains the Agent’s responsibilities during the Introduction Period ( when the property is being marketed) and during the Rent Collection Period (when the tenancy is ongoing). These duties include creating property listings, screening tenants, managing tenants security deposits, collecting rent, and following up on overdue rent.
Clause 6: outlines the Owners responsibilities. These include getting any necessary approvals from insurers, landlords, or mortgage companies, and meeting legal requirements for gas appliances, electrical safety and fire safety.
Clause 7: outlines the Cancellation of Contract during the Cooling Off Period as required under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 which relate to contracts made in a consumers home or otherwise off the traders premises.
Clause 8: deals with termination of the contract between the Agent and the Owner. Different rules apply depending on whether its during the Introduction Period (before a tenant is found) and the Rent Collection Period.
Clause 9: deals with renewing or extending the tenancy. If the tenant stays after the original agreement ends, the Agent is entitled to additional commission called “Renewal Commission”.
Clause 10: outlines the Agents complaints process and confirms which redress scheme they are part of.
Clause 11: Deals with the Client Money Protection Schemes for Property agents.
Clause 12: is a standard clause relating to the nature of the Agreement.
Clause 13: deals with Data Protection.
Clause 14: deals with Money Laundering Regulations.
Clause 15: deals with Consumer Protection and Disclosure of Information.
Clauses 16 and 17: standard clauses relating to the Relationship of the parties and VAT.
Clause 18: sets out other important terms.
Clause 19: deals with other information for the Owner.
Clause 20: standard Jurisdiction clause.
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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