Online Letting Agent Upad - Property Management Terms

  1. TENANCY ADMINISTRATION
    • 1.1 Tenant referencing
      • a) Each landlord client will be asked to complete and provide a copy of UPAD's standard new deal form. Subject to paragraphs 1.1b) below, UPAD will obtain references for each tenant (which includes where possible/relevant a previous landlord's reference, an employer's reference and details of the individual's credit history). These references will be submitted to the landlord for approval.
      • b) UPAD or its subcontractors or agents shall be obliged to obtain references for no more than [three] consecutive potential tenants per managed property. If [three] consecutive potential tenants fail the referencing process, UPAD or its subcontractors or agents shall be permitted to terminate forthwith the tenancy administration services provided to the respective landlord client hereunder.
    • 1.2 Tenancy agreement
      • UPAD will prepare a draft tenancy agreement for approval by the landlord and the tenant and will arrange for signature of the final agreed version by both parties.
    • 1.3 Check-in, inventory and deposit
      • a) UPAD will arrange for a check-in/inventory to be completed in accordance with the requirements of the tenancy deposit scheme. The cost of the check­ in/inventory will be borne by the landlord, and will be deducted from the initial rent received.
      • b) Where the relevant landlord has selected the tenancy administration service set out in this paragraph 1, UPAD will hold the tenant deposit as stakeholder. All deposits received will be registered with The Dispute Service.
    • 1.4 Renewals
      • a) Three months prior to the end of each tenancy, UPAD will contact the landlord and tenant to establish if both parties would like to extend the tenancy for a further period. UPAD will also confirm with the landlord if they wish for the rent to be increased upon renewal.
      • b) Upon confirmation from both parties that the tenancy should be extended UPAD will write to the landlord and tenant enclosing a Memorandum of Agreement to be signed extending the tenancy for a further fixed term.
    • 1.5 Check-out, inventory and deposit
      • a) On receipt of notice from a tenant or a request from a landlord to terminate a tenancy, UPAD will issue all appropriate notices to ensure that vacant possession is given upon the agreed date. In addition, UPAD will arrange for a check-out/inventory to be completed in accordance with the requirements of the tenancy deposit scheme. The cost of the check-in/inventory will be borne by the tenant, and will be deducted from their deposit.
      • b) UPAD will negotiate and agree the release of the deposit by the tenant and the landlord, and will prepare a deposit release form, together with original authorised invoices (where already received) in respect of any deductions.
      • c) UPAD will record the termination and deposit utilisation and ensure that a payment for any returned security deposit is sent to the tenant's forwarding address and the payment in respect of the claim is sent to the landlord by close of business on the next working day.
  2. RENT COLLECTION
    • 2.1 Initial rent and deposit
      • a) Each landlord client will be asked to complete and provide a copy of Upad's standard new deal form. UPAD will arrange with the tenant to collect the first month's rent and the initial deposit and will advise the landlord once this has been received and the funds are cleared.
      • b) UPAD will send out a standing order mandate to each tenant and ensure this is completed and returned as soon as possible.
      • c) Where the relevant landlord has selected the rent collection service set out in this paragraph 2, UPAD will hold the tenant deposit as stakeholder. All deposits received will be registered with The Dispute Service.
      • d) On termination of the tenancy, and in the event that the relevant landlord client has not selected the tenancy administration service set out in paragraph 1 above, UPAD will release the deposit in accordance with the joint instructions of the landlord and the tenant, on receipt of a copy of the signed Agreement between the parties.
    • 2.3 Accounting to landlords
      • a) Where the landlord is an overseas landlord for taxation purposes, a further deduction may need to be made in respect of basic rate taxation (see paragraph 4 below). UPAD will only be required to account for property expenditure if the relevant landlord client has selected the property management service set out in paragraph 3 below. In these circumstances, committed expenditure is represented by all invoices received by UPAD by the preceding working day.
      • b) UPAD will also send to each landlord a statement with each payment, providing an analysis of the funds transferred by property and identifying separately any rental income and all items of expenditure.
    • 2.4 Credit control
      • a) In the event that a tenant (other than a corporate tenant) fails to pay by the rent due date, UPAD will use best endeavours to contact the tenant by telephone and in the event that payment has not been received within 7 days of the due date, UPAD will issue a chasing letter to the tenant. A copy of this letter will be sent to the landlord, together with an accompanying letter.
      • b) UPAD will use best endeavours to contact the tenant during the course of the next 7 days and in the event that payment has not been received within 14 days of the due date, UPAD will issue a second chasing letter to the tenant. A copy of this letter will be sent to the landlord, together with an accompanying letter.
      • c) UPAD will use best endeavours to contact the tenant during the course of the next 7 days and in the event that payment has not been received within 21 days of the due date, UPAD will issue a notice of proceedings to the tenant. A copy of this notice will be sent to the landlord, together with a letter suggesting that the landlord commences legal proceedings.
  3. PROPERTY MANAGEMENT
    • 3.1 Management forms Ifloats
      • a) Upon the commencement of a new managed tenancy each landlord client will be asked to complete and provide a copy of UPAD's standard property management form. This provides information vital to the successful management of the property; ensuring works are carried out under guarantee or insurance cover where possible.
      • b) All landlord clients selecting the property management service set out in this paragraph 3 will be required to authorise retention of a float of £350, to cover on-going low-level maintenance expenditure incurred between rental receipts.
    • 3.2 Receiving and dealing with maintenance requests
      • a) UPAD will provide a dedicated maintenance line in respect of managed properties in order that tenants can report maintenance issues. During normal office hours this will be answered by UPAD staff that will ensure that the request is valid and will log details. A suitable contractor will be instructed to visit the property and proceed with works if £250 or under. In the event of works exceeding the agreed mandate of £250, UPAD will liaise with the landlord to seek advice on how to proceed, obtaining quotes where required. Once agreement has been reached, UPAD will instruct the contractor to proceed with the works required.
      • b) UPAD will monitor progress of the work and use its reasonable endeavours to ensure that it is completed in a timely manner. UPAD will also ensure that an invoice for the work is submitted and that this is accompanied by a tenant satisfaction certificate confirming that the work has been completed. Details of completion of the work will be recorded and the invoice will be authorised for payment.
      • c) Out of normal office hours maintenance calls will be answered by a dedicated maintenance call handling service. In most cases the service provider will advise the tenant on what preventative action can be taken to prevent the situation deteriorating and will refer the call to UPAD on the next working day. In the case of a true emergency the service provider will instruct a contractor selected by UPAD to visit the property and carry out interim work to prevent the situation deteriorating and, if the situation is serious, will inform a member of UPAD's senior management and seek instructions. In the event of an emergency which has the potential to cause harm or damage to the tenant or property UPAD will operate outside of the set maintenance mandate. UPAD will instruct a contractor to proceed with the necessary works to return the property to a safe condition with no set limit on expenditure. The service provider will provide UPAD with details of all calls received and all action taken or advice given by 9 a.m. on the following working day.
    • 3.3 Gas and PAT certification
      • a) The Customer requires UPAD to arrange and record all gas and PAT Certification requirements in respect of managed properties.
      • UPAD will maintain details of all requirements and issue instructions to suitable contractors 2 months before the preceding certificate expires allowing time for access to be obtained and any remedial work required to be completed. UPAD will liaise with the contractor and the tenant to facilitate this visit.
      • b) If remedial works are required UPAD will follow the procedure outlined in paragraph 3.2 above.
      • c) On receipt of certificates UPAD will ensure that a valid certificate has been provided and forward a copy of the certificate to the tenant and the landlord in addition to ensuring that an original certificate is held on the property files.
    • 3.4 Utilities and council tax
      • At the commencement of a new tenancy the Customer requires UPAD to advise utility providers and council tax authorities of the change in occupancy and provide them with details as to where future invoices should be sent. When informed of a tenancy termination in respect of a managed property (and provided with meter reading figures in respect of utilities by the checkout clerk), UPAD will advise utility providers and council tax authorities of the change in occupancy, provide them with details as to where future invoices should be sent and obtain all available rebates and reductions.
    • 3.5 Payment and recording of expenditure
      • Invoices should be excluded from the payment run if there are insufficient funds within a particular landlord's account to meet the amount due. In these circumstances, UPAD should check to see whether the float is sufficient to cover the outstanding amount and, if so, will deduct the money from the float. If the float is insufficient to meet the outstanding liability, UPAD will either seek further funds to clear the outstanding balance or increase the float, or agree with the landlord that payment can be deferred until the next period's rent is received.
  4. NON-RESIDENT LANDLORD TAX
    • a) In cases where the landlord is an overseas landlord:
      • (i) if the landlord has approval from HM Revenue & Customs to receive rental income with no tax deducted, the landlord client will be asked to provide their NRL scheme no. And send UPAD a copy of the landlord's certificate confirming the same; otherwise
      • (ii) UPAD will deduct from any remittance under paragraph 2.3 above tax at the basic rate.
    • b) At the end of each calendar quarter, UPAD will complete an NRLQ form and remit the form, together with any tax due, to HM Revenue & Customs within 30 days of the calendar quarter end.
    • d) At the end of each tax year, UPAD will submit the required forms to HM Revenue & Customs in respect of non-resident landlords and resident landlords and will send all non-resident landlords from whom tax has been deducted an NRL6 certificate.
  5. TERMINATION OF CONTRACT
    • 5.1 Subject to paragraph 1.1b) above, [two] months' written notice must be given if for any reason the landlord should wish to terminate the property management services provided by UPAD. However, fees remain due as follows:-
      • a) Let Only Service The fee for finding a tenant in accordance with a signed Agency Agreement.
      • b) Full Management and Rent Collection Services
      • Fees in accordance with the Let Only Service will become payable for the remaining term of the tenancy, subject to a minimum fee of £400.00 plus VAT.
    • 5.2 Both UPAD (and it subcontractors and agents) and the landlord may on written notice and without cause terminate the property management services provided by UPAD immediately and no further fees will be payable.
  6. GENERAL
    • 6.1 Responding to queries
      • UPAD will deal directly with any landlord, tenant or supplier enquires relating to the Services. All enquiries will be dealt with within 3 working days, or updates given at similar intervals thereafter until the problem is resolved.
    • 6.2 Reconciliations and month end procedures
      • a) UPAD will reconcile its client bank accounts to the cash balances on at least a monthly basis. UPAD is also required to prepare contemporaneous client reconciliation, showing the breakdown of the total Upad balance into individual owner, tenant and tax balances.
      • b) Gross interest from the Customers' tenants deposits and on any balance held on the rent client account from time to time will be retained by UPAD.
      • c) These terms and conditions should be read alongside and are incorporated into the UPAD Terms and Conditions. Where this is a conflict between these terms and conditions and the UPAD Terms and Conditions as regards UPAD's property management services, these terms and conditions shall take precedence.