Guaranteed Rent Agreement


 

Guaranteed Rent Agreement

 

 

 

Relating to:

, , . 

(Property address)

 

 

Between:

, , 

(Owner(s) name(s))

 

 

And:

 

This agreement is dated:  May 25, 2022

 

 

Parties

(1) , , , ,   (Owner’s name & address)

     .........................................................................................................................................

(2)   – Jean-Charles Brosse

63-66 Hatton Garden, EC1N 8LE, London.

 

Background

The Owner owns the Property and has agreed to allow the Manager to manage the property in accordance with the terms of this Agreement.

Agreed terms     

1.            Interpretation

1.1          The definitions in this clause apply in this agreement.

Effective Date:  means the date of this agreement.

Insurance Policy: the Owner’s insurance covering the buildings and contents of the Property.

Insurance Premium: the Insurance Policy premium payable to the Insurer under the terms of the Insurance Policy for the Property.

Insured Risks:  the risks insured against being loss or damage by fire (including lightning and thunderbolt) storm tempest explosion aircraft (and things dropped therefrom) and aerial devices and impact civil commotion floods burst pipes and such other risks or perils as the owner shall time to time reasonably determine.

Management: means:

(a)   Collection of all fees and rental income relating to the property,

(b)   Keeping the property in good repair and condition including carrying out any small works, to the value of £200, arising out of statutory requirements and renewing  any appliances or chattels at the owners request and the owners expense, which are beyond reasonable repair, provided that;

                 (i)    The obligation does not include works or repairs to the structure, roof, foundations or exterior of the Property or works arising out of the occurrence of any insured Risks. Also exempt are repairs and replacement of the boiler & heating systems.

 

                 (ii) The obligation will not oblige the manager to keep the property in any better state of repair or condition than at the date of this agreement

(c)   Subject to prior receipt from the Owner of the relevant insurance proceeds, expending such proceeds (but no more) in making good the damage or destruction that occurred

 

(d)   At all times carrying out such duties in accordance with the principles of good estate management.

1.2          The rules of interpretation in this clause apply in this agreement.

1.3          Clause and Schedule headings do not affect the interpretation of this agreement.

1.4          Except where a contrary intention appears, a reference to a clause or a Schedule is a reference to a clause of, or Schedule to this agreement.

1.5          Unless otherwise specified, a reference to a law is a reference to it as it is in force for the time being taking account of any amendment, extension, application or re-enactment and includes any subordinate legislation for the time being in force made under it.

1.6          A person includes a corporate or unincorporated body.

1.7          Writing or written includes faxes and e-mail communication but not mobile phone text messages.

1.8          Any obligation in this agreement on a person not to do something includes an obligation not to agree or allow that thing to be done.

1.9          Any reference to the Owner or to the Manager includes their respective personal representatives and successors in title.

1.10       Words importing one gender shall be construed as importing any other gender.

1.11       Words importing the singular shall be construed as importing the plural and vice versa.

1.12       Where any party comprises more than one person, the obligations and liabilities of that party under this agreement shall be the joint and several obligations and liabilities of those persons.

1.13       AST means Assured shorthold Tenancy.

2.            Appointment

2.1       The Owner hereby appoints the Manager to manage the property and the Manager hereby agrees to act as manager of the Property.  This appointment shall take effect from the Effective Date.

2.2       The Owner hereby gives full authority to the Company to let out the Property using AST Agreements or Licences by multiple occupation, up to a maximum of persons, to whomever they see fit for the duration of this agreement.

Property: The freehold property known as , , which is registered at HM Land Registry under title number 

3.            Manager’s Duties & Obligations

3.1          During the continuance of its appointment the Manager shall;

(a)          Attend diligently to the management of the property.

(b)          Observe the terms of the Insurance Policy so far as they relate to the Property and if required, to notify the Owner via email the names of the Property’s occupants with move in/out dates, in order to comply with the Owner’s Insurance Policy.

(c)           Following damage or destruction to the Property, (unless the Manager shall terminate this agreement in accordance with the provisions of clause 7.1 below prior to such damage and destruction occurring), and subject to receipt of the insurance proceeds, use reasonable endeavours to procure the reinstatement, repair or reconstruction of the Property and to use any insurance proceeds in respect of such works only (and the Owner undertakes to instruct the Insurer to pay any insurance proceeds to the manager for this purpose or to reimburse the Manager from and against all costs and expenses incurred in connection therewith)

(d)          Keep the Owner informed of relevant matters affecting the Property which a reasonable property owner would consider relevant

(e)          Arrange for any rental deposit to be adequately protected under the rules of the Deposit Protection Scheme (DPS) (under the Housing Act 2004 and associated legislation) and to indemnify the Owner against failure to comply

(f)            Pay:

(i)            A guaranteed rent of £ per calendar month to the Owner for the duration of this agreement.

(ii)           All costs arising from the management of the property

(iii)          All council taxes which are imposed on the property (other than any taxes payable by the owners)

(iv)          All charges for electricity, gas, water and other services consumed or used at the property (including meter rents); and

(v)           All  costs, expenses and demands arising from sub tenancy including (but not limited to) the shared costs of complying with all statutes and laws in relation to the tenancy and obtaining a court order for possession of the Property.

4.                     Owner’s Duties & Obligations

4.1       During the continuance of its appointment the owner shall;

a)    Pay any Mortgage Payments on the due dates

b)    Warrant that any mortgage lenders, who may have a charge on the Property, have given consent in relation to the subletting of the rooms.

c)    Keep in place adequate insurance and observe the terms of insurance policies so far as they relate to the property and the sub-letting of rooms therein.

d)    (At the direction of the Manager) notify any tenant/resident/occupier in writing that rent and other payments shall be made to the Manager or as he shall direct.

e)    If applicable, the Owner shall maintain a valid HMO licence for the Property and assist the Manager in maintaining compliance with regulatory standards as necessary.

f)     The Owner shall be responsible for ensuring that the Gas Safety Certificate, Electrical Installation checks and EPC are all valid and update them as necessary, providing copies of the certificates for the Manager to display in the property.

g)    Immediately forward to the Manager any monies received by the Owner direct from residents/occupiers/tenants of the property after the date hereof

h)    Prepare and serve a valid Section 21 or Section 8 Notice to any tenant whose tenancy agreement predates this agreement within 7 days of this agreement and give 2 months’ written notice for them to vacate the property as soon as the terms of their AST allow.

i)      Undertake to pay any relevant eviction costs arising from any tenant whose tenancy agreement predates this agreement not leaving the Property when their notice period expires and to indemnify the Company against lost revenue caused by non-payment of rent by any such tenants.

j)      Provide all information which the Manager shall reasonably require in relation to managing the Property.

k)    Provide reasonable assistance to the Manager with any court order for possession of a room or the whole Property.

l)      Ensure all repairs or works over the value stated in section 1.1(b), are approved and paid for promptly within two weeks of the Manager informing the Owner. If not the Manager may resolve this on the Owner’s behalf, and seek re-imbursement for the cost.  

5.         fees

5.1       In consideration for carrying out his duties under this agreement and excluding the agreed fee payable to the Owner (and any agreed taxes or utility charges), the Manager shall be entitled to retain all rents payable by the tenants, including any other charges the Manager might need to levy on the tenants (eg late call out, excess utility charges, etc) in exchange for carrying out his duties and obligations pursuant to this agreement.

6.         Liability

6.1       The Owner shall ensure that there is promptly provided to the Manager all such information as shall be required to enable the Manager to properly perform his duties under this agreement and no liability shall attach to the Manager by reason of his having acted or omitting to act where such action or omission resulted directly or indirectly from any failure or delay in providing such information.

7.         Termination

 

7.1       This agreement may be terminated by the Manager by a minimum of three months’ notice in writing to the Owner if at any time;

 

  1. The Owner shall in respect of an individual become bankrupt or unable to pay their debts or have no reasonable prospect of being able to pay their debts within the meaning of section 267 and 268 of the Insolvency Act 1986. Or in respect of a company goes into administration or liquidation (except for a voluntary liquidation for the purpose of reconstruction or amalgamation upon terms previously approved in writing by the Manager such approval not to be unreasonably withheld or delayed).

 

  1. The Owner shall commit a serious breach of the provisions of this agreement and/or have fail to remedied that breach within thirty days after the service of notice requiring it to be remedied.

 

7.2       This agreement may be terminated by the Owner by a minimum of six months’ notice in writing to the Manager (to allow for exit of tenants on 6 months AST’s, under the Housing Act 1988, as amended 1996) if at any time;

 

  1. The Manager shall in respect of an individual become bankrupt or in respect of a company goes into administration or liquidation (except for a voluntary liquidation for the purpose of reconstruction or amalgamation upon terms previously approved in writing by the Owner such approval not to be unreasonably withheld or delayed).

 

  1. The Manager shall commit a serious breach of the provisions of this agreement and/or have fail to remedied that breach within thirty days after the service of notice requiring it to be remedied.

 

7.3       Should the Owner exercise any contractual right to terminate this agreement, the Owner agrees to compensate the Manager for any agreed repair or refurbishment costs, paid by the Manager for the Property, up to the termination date, and as per the following sliding scale:

 

 

 

 

 

 

 

 

Term (from this agreement date)

% Reimbursement on Refurbishment and Maintenance Costs

Month 7 to end of month 12

80

Month 13 to end of month 18

60

Month 19 to end of month 24

40

Month 25 to end of month 30 of the same agreement

20

Month 30 to expiry date of this agreement

0

 

 

7.4       In the event of any early termination of the contract, including a forced sale on the property by the lender or a change of ownership of the property, the Owner agrees to work with the Manager to facilitate the exit of the sub tenants to comply with the Housing Act 1988, as amended 1996.

8.         General

 

8.1                   The parties hereto are not in partnership with each other.

 

8.2       This agreement is for the benefit of the parties to it and is not intended to benefit or be enforceable by anyone else save that the Manager may assign the benefit and burden to another who shall then be the Manager.

 

8.3       The parties agree that no relationship of landlord and tenant is created between the Owner and the Manager.

9.         Notices

9.1       Any notice given under this agreement must be in writing and signed by or on behalf of the party giving it and be served by delivering it personally with a witness, or sending it by pre-paid first class post or recorded delivery to the address and for the attention of the relevant party as follows:   

a)      To the Owner at:  , , ,  (Owner’s address)

Or to the Owner’s agent or to such other address, or for the attention of such other person, as was last notified in writing by the Owner to the Manager.

  1. b) To the Manager at , 63-66 Hatton Garden, London, EC1N 8LE (Manager’s address)

Or to such other address or for the attention of such other person, as was last notified in writing by the Manager to the Owner.

9.2       Any such notice shall be deemed to have been received:

a)         If delivered personally, at the time of delivery.

b)         In the case of pre-paid first class post or recorded delivery, on the second working day after posting, and

9.3       In proving service it shall be sufficient to prove that delivery was made or that the envelope containing the notice was properly addressed and posted as a prepaid first class or recorded delivery letter, as the case may be.

9.4       A notice given under this agreement will not be validly served if sent by e-mail.

10.                   Jurisdiction and Governing Law

This agreement shall be governed by and constructed in accordance with English law and the parties submit to the jurisdiction of the English courts.

 

This agreement has been entered into on the date stated at the beginning of it.

 

Fee: A monthly rent of £ to be paid monthly in advance for the duration of the term, by the Manager to the Owner.

Contractual Term: A term of months, beginning on and including the date of this agreement and ending on, and including

Deposit: The Initial Deposit of £   (If applicable)

Proof of ID :

 

HM land Registry copy :

Date : May 25, 2022

Leave this empty:

Signature arrow sign here

Signed by Jean charles Brosse
Signed On: February 7, 2022


Signature Certificate
Document name: Guaranteed Rent Agreement
lock iconUnique Document ID: 47d26ee4fa8e9d7142767cdd6869344fcdc12443
Timestamp Audit
November 22, 2021 2:14 pm BSTGuaranteed Rent Agreement Uploaded by Jean charles Brosse - admin@rentsafely.co.uk IP 94.2.122.128