Letting & Property Management Terms & Conditions

SERVICES

Dutch & Dutch provide Letting and Property Management services to Landlords; please select the option which suits you best below. We can also design a bespoke property management solution; simply tell us what you are looking for.

LETTING

The Letting service includes:

  •  1. Appraising the letting potential of your property and advising on the likely rental income achievable
  •  2. Arranging photography, floorplans and Energy Performance Certificates (‘EPC’) (fees may apply)
  •  3. Advertising and general marketing of the property
  •  4. Interviewing prospective Tenants and taking up references via a credit reference agency
  •  5. Collecting a Holding Deposit from the Tenant on behalf of the Landlord
  •  6. Preparing the Tenancy Agreement and renewing the Agreement where necessary at the end of the Term
  •  7. Arranging Check-In and Check-Out Inventories and the refund of Tenant’s Deposits according to a comparison of these reports.

PROPERTY MANAGEMENT

The Property Management service includes:

  •  8. Managing the Property on behalf of the Landlord using reasonable endeavours to ensure compliance by the Landlord of its obligations
  •  9. Collecting rent, service charges and other payments due to the Landlord, any arrears due from tenants of the Property and holding such in a Client bank account
  • 10. Paying to the Landlord monthly or quarterly less any fees or expenses due or incurred for the period and preparing and issuing quarterly statements of account
  • 11. Liaise with utility providers where necessary and arrange for the payment of accounts during vacant periods
  • 12. Supervise maintenance works provided that if the expenditure on any single item of maintenance, repair, replacement or renewal exceeds the expenditure limits specified we shall seek Landlord’s prior authorization
  • 13. Use reasonable endeavors to advise the Landlord if any Tenant is in breach of any terms of its lease and/or any relevant laws
  • 14. Advise the Landlord when notices should be served and serve such notices required by law in respect of the Premises, unless service is required by a solicitor
  • 15. If specified in the Agreement arrange insurance in respect of the Property and/or contents
  • 16. Produce receipts or other evidence of expenditure, and provide VAT invoices
  • 17. Arranging cleaning of the property between tenancies (if necessary) and the fair apportionment of the cost incurred
  • 18. Payment of regular outgoings such as Ground Rent, Service or Management Charges and Insurance Premiums from the rent received
  • 19. Arrange annual inspections of the Property.

MAINTENANCE AND REFURBISHMENT WORKS

The Landlord agrees to make Dutch & Dutch aware of any ongoing maintenance problems. Dutch & Dutch will arrange all necessary repairs up to a maximum expenditure limit of £500, which will be held as a float on account. In an emergency or for reasons of contractual necessity Dutch & Dutch may exceed the limits specified.

Dutch & Dutch can also arrange and manage refurbishment works on your behalf. Our fees for this are 10%+VAT of the contract value.

HOLDING DEPOSIT

A Holding Deposit (normally 2 weeks rent) is taken from the Tenant applying to rent a property. The purpose of this fee is to verify the Tenant’s serious intent to proceed and to protect Dutch & Dutch against any administrative expenses (taking out bank references, conducting viewings, re-advertising) that may be incurred should the Tenant decide to withdraw. The Holding Fee does not protect the Landlord against loss of Rent due to the Tenant deciding to withdraw, or references proving unsuitable.

REFERENCES

We use a third party specialist referencing agency that provides “detailed financial and rental history checks on prospective tenants” we cannot be held responsible for the truth or accuracy of the responses. We will obtain a copy of the tenant's ID.

EPC

An Energy Performance Certificate must be provided or arranged prior to the property being marketed.

INVENTORIES

It is recommended that an Inventory is drawn up for each letting. The Landlord may wish to provide their own or instruct us to arrange for an independent Inventory Clerk to draw up an Inventory. We take a fee from tenants to cover the cost of a ‘check-out’ inventory and the Landlord is generally expected to pay for the ‘check-in’, approximately £150 (inclusive of VAT).

RENT DEPOSIT

Prior to the Tenant’s occupation Dutch & Dutch will take a Rent Deposit (normally 6 weeks rent). Deposits are held by Dutch & Dutch as stakeholder in a client account. All deposits must be registered in a Government Scheme; Dutch & Dutch are members of the ‘Tenancy Deposit Scheme’ (TDS), our membership number is GO1804.

Any disputes relating to the refund of the Rent Deposit will be referred to TDS who provide a dispute resolution service. An annual fee of £48 (inclusive of VAT) is charged for registering deposits.

OVERSEAS LANDLORDS

We are required by HMRC to deduct tax at the basic income tax rate from all rent collected on behalf of non-resident Landlords unless we are provided with an Exemption Certificate prior to the Tenant’s occupation. Where a non-resident landlord does not have approval from HMRC, we charge £125 (including VAT) for submitting quarterly returns and an annual return.

We are required to provide the Tenant with a UK address for the Landlord. This will be c/o Dutch & Dutch unless we are instructed otherwise.

INSURANCE

The Landlord is responsible for ensuring the Property is adequately insured. Dutch & Dutch can arrange Buildings Insurance through our broker, please confirm if you would like us to do this.

SAFETY REGULATIONS

The letting of property is closely regulated with respect to safety. The law makes particular demands regarding the safety, servicing and inspection of the gas and electric appliances and installations within a property, and with respect to the safety of furniture and soft furnishings provided. The following regulations apply:

  • Furniture and Furnishings (Fire) (Safety) Regulations 1988 and (Amendment) 1993
  • Gas Safety (Installations & Use) Regulations 1998
  • Gas Cooking Appliances (Safety) Regulations 1989
  • Electrical Equipment (Safety) Regulations 1994
  • Plugs & Sockets (Safety) Regulations 1994
  • DRAFT Smoke and Carbon Monoxide Alarm Regulations 2015

It is agreed that the Landlord shall ensure that the Property is made available for letting in a safe condition and in compliance with above Regulations. In particular the following MUST be provided prior to a Tenants occupation:

  • a. A valid annual Gas Safety Certificate
  • b. A working smoke alarm on each floor
  • c. A working Carbon Monoxide alarm in properties where solid fuel is burnt (does not include gas appliances)

It is also the Landlords responsibility to assess and manage the risk of exposure of Legionella.

VOID PERIODS

During void periods, we will continue to manage the property, however, cannot be held liable for any loss and/or damage arising from fire, flood or theft. If the landlord requires supplies to be turned off or disconnected during this period, Dutch & Dutch must receive instructions in writing The landlord is also advised to contact his/her insurance company should the property be empty for longer than 30 days.

GENERAL AUTHORITY

The Landlord confirms that he/she is the sole or joint owner of the Property and that he/she has the right to rent out the Property under the terms of the mortgage or head lease. Where necessary, the Landlord confirms that permission to let has been granted by the mortgagee. The Landlord authorises Dutch & Dutch to carry out the various duties of Property Management as detailed.

OBTAINING CONSENTS

If we are required to obtain Consent to the letting from your building society or superior landlord on your behalf, we charge a fee of £75 (inclusive of VAT). This excludes any costs that may be payable to your building society, superior landlord or their agents.

If a Local Authority Licence is required to let your property, you are responsible for obtaining and paying for such Licence.

CONTRACTORS

Dutch & Dutch endeavors to select competent tradesmen at a reasonable price but is unable to personally guarantee the standard of workmanship, although the Landlord retains the right to pursue any claim for substandard work. If you wish us to engage particular contractors, full details must be provided to us and contractors must be suitably qualified and insured. We reserve the right to use our own contractors in cases of emergency or where your contractors are unavailable on reasonable request. All contractors whether arranged by us or by you are engaged on your behalf and hence we cannot accept liability in respect of them.

MUTUAL AGREEMENTS

We have not carried out any survey of the property and accept no liability for any inherent, latent or continuing defects. The expiry or termination of this Agreement shall be without prejudice to any rights, which have already accrued, to either of the parties under this Agreement. We will not be obliged to make any payments on our own account but only from Rents collected on your behalf and/or from any other monies provided in advance by you.

INDEMNITY

The landlord undertakes to keep Dutch & Dutch fully and effectively indemnified in respect of any claim, demand, liability, cost, expense or prosecution which may arise due to the failure of the landlord to comply fully with the terms of all the above Regulations, including any subsequent amendments thereto or replacement Regulations.

The landlord agrees to indemnify Dutch & Dutch as agent against any costs, expenses or liabilities incurred or imposed on us, provided they were incurred on the Landlord's behalf in pursuit of our normal duties.

SOLE AGENCY

Unless otherwise agreed you are appointing us on a Sole Agency basis. Should you wish to terminate our appointment or instruct another agent, you are required to provide us with one weeks' written notice. In cases where another agent is instructed, our agency fees will become 10%+VAT.

PROPERTY MANAGEMENT TERMINATION

Our appointment will be for the agreed Term of the Tenancy. Either party by way of three months’ written notice may terminate this Agreement, except in cases of gross misconduct whereby this termination will be effective immediately. Outstanding fees, including renewal fees for a Tenant introduced by us will continue to be due until the Tenant vacates.

FEES & CHARGES

LETTING FEES

In the event that Dutch & Dutch introduces a tenant who enters into an agreement to rent the property, fees become payable. The Fee is charged as a percentage of the total rental value of the agreed term and is due upon commencement of the tenancy.

If the tenancy agreement is terminated in accordance with a break clause, Dutch & Dutch will refund any fees already received for the remaining period of the tenancy.

RENEWAL FEES

In the event that the tenant renews, extends, holds-over and/or enters into a new agreement for which rental income is received, a renewal fee becomes payable to Dutch & Dutch.

MANAGEMENT FEES

Management fees are deducted from the rent collected on a monthly basis.

SALE OF PROPERTY

If the Tenant or an Associated Party introduced either directly or indirectly by or through the Tenant, should purchase the property, you agree to pay an additional fee out of the proceeds of sale upon completion. This fee will be 1.5%+VAT of the sale price.

CHANGE OF OWNERSHIP

If you sell or transfer the property with the benefit of a Tenancy, our commission and fees remain due and payable by you for the duration of the term. This applies whether you use our letting service, management service or other services. You are advised to make arrangements with the new owner to be reimbursed for these charges.