2) Residential Lettings & Property Management: An Overview

3) Maintenance & Inspections

4) Landlords Obligations and Safety Requirements

5) Tenants Obligations

6) Rent Guarantee & Legal Protection / Other Insurance Services

8) Taxation (Including Non Resident Landlords)

9) Mortgage Service

10) Standard Letting & Management Agreement (Includes Details of Our Charges)

The decision to let your property
In the current climate there are a wide variety of reasons why people choose to let their property or purchase a property to let. Many people let their property purely as an investment, possibly to provide an income with the likelihood of also enjoying capital growth on their investment, having bought it solely for that purpose. Some may find, due to the need to move away perhaps for employment reasons, that they can let their property to cover the mortgage and other outgoings, whilst retaining the property they may wish to eventually move back to.

Property management is no longer just for the rich and there are many landlords who own just one or two properties, in addition to their main residence, therefore enjoying capital appreciation on several properties whilst a tenant covers some of the costs. There are many more lenders who
are willing to consider lending on investment properties and the deposit required can start
from as little as 15%.
For whatever reason, letting your property enables you to retain a foothold in the property market whilst receiving a satisfactory income, which can be geared towards covering mortgage payments and the cost of maintaining your property.

There are many areas to consider before letting your property and although it can be a lucrative venture, there are also potential pitfalls that you need to be aware of. In the following pages
we will outline the problems that may be encountered and how Devon Lettings can help
reduce those risks.

A Brief Background to the Company
Devon Lettings Ltd was started in September 1995, to handle the Letting & Management of Residential Property within the Mid Devon area and now deals with approximately 500 properties with more than 200 properties under management. The directors Graham J Carter MNAEA & John B Stoyle have over 50 years experience in the residential property market and in particular the day to day running of residential tenancies, together with an in depth understanding of the legal requirements of Assured Shorthold Tenancies.
The manager Rupert Geering MNAEA has also had several years experience on both Residential Sales and Lettings and is responsible for the smooth running of the office and for looking after your property and he will probably be your first point of contact.

The company has been built up by reputation and offers a comprehensive range of services to deal with the day to day running of rented properties, as well as providing extensive marketing avenues. The aim of the company is to take the stress out of renting for both Landlord and Tenant and to offer the peace of mind that comes in dealing with a well-established and reputable company.

Marketing
Demand for quality rented accommodation is currently very high within the Mid Devon Area and we are perfectly placed to take advantage of this with a wide range of marketing tools. We offer a free, no obligation valuation service and can offer specific advice relating to your property to make it easier to let. It is generally the case that the better the condition of a property, the easier it will be to let, for longer periods and at higher rentals. In addition, the better the condition of the property, the higher the likelihood of the property being well looked after, although to achieve the best return on your investment you should not over capitalize. When we receive your instructions to market the property, details with colour photographs will be circulated amongst our large register of applicants, displayed within our window and advertised within the local press as well as on our website and other property websites. We also would strongly recommend that a To Let board is placed on the property as a large percentage of tenants come from the local community and this also attracts people who may not be actively thinking of moving.

References
When we have somebody interested in your property we will discuss their circumstances with you before taking up detailed references. These include past and current landlords/employment, accountants, where applicable, personal references and proof of residency and identification, as well as credit checks. Once the references have been received we will discuss them with you or forward you copies before proceeding. Although these references are taken in good faith they cannot be fool proof and it is the landlords sole decision as to whether to proceed with the tenancy.

Tenancies
We will be responsible for drawing up the legal agreement and any relevant notices required.

All new tenancies are now assumed to be Assured Shorthold Tenancies, unless stated otherwise, which gives Landlords a great deal of security. Although the minimum term for a tenancy is
6 months, a shorter initial term can be agreed at the outset, if acceptable to both parties. However, a Landlord cannot evict a tenant within the first 6 months, even if a shorter initial term has been agreed, unless the tenant is in breach of the tenancy.
Although the initial term is often 6 months the tenancy can continue after this time on a month-by-month basis and then becomes a periodic tenancy. This does not affect either party’s rights or obligations and the serving of the correct notice can still bring the tenancy to an end. If the tenant wishes to terminate the tenancy either at the end of the initial term or during a periodic tenancy they have to give 1 month’s written notice either directly to the Landlord or their Agent.

Should the landlord wish to terminate the tenancy either at the end of the initial term or during a periodic tenancy they have to give 2 months written notice and as stated earlier the tenancy cannot be brought to an end before the end of the fixed term unless the tenant in breach of the agreement. We will advise landlord’s of the options available and will serve the appropriate notice on their behalf, if we are also managing the property.

During the tenancy, when we are also managing the property, we are responsible for the day to day running of the property and you can have, within reason, as much or as little to do with the property, as you like. We obviously collect the rent and can arrange to either pay this directly into your account, or forward you a cheque, which is accompanied by a monthly statement. At the end of the financial year we can forward a breakdown of all rents and expenditure to both you and your accountant.

We will liase with Utility companies and the Local Council at the start and end of the tenancy and arrange for meters to be read.

During the tenancy we will make regular inspections of the property and report to you any problems that may be encountered. We will also carry out a final inspection and arrange for return of the deposit to the tenant, less any deductions.

We have plumbers, electricians, painters/decorators, builders and cleaners who work for us on a regular basis or if you prefer you can use workmen of your own choice. Quotes, where required, will be provided before any work is authorised, accept in the case of emergencies.

One of the main disagreements between Landlords and Tenants is often the cleanliness of the property at the end of the tenancy. Although the deposit often covers the cost of any necessary cleaning etc., we will also arrange digital photographic inventories, in order to keep disputes to a minimum. Although the majority of tenancies run smoothly, Landlords must appreciate that tenanted properties do, as a whole, suffer greater wear and tear than if it was their own home.

In the unlikely event of serious problems, such as rent arrears or damage to the property, we will initially try to resolve the problems and in the event of rent arrears try to establish if there are genuine reasons for the arrears. If the problems cannot be resolved, we will issue notices to leave and liase with solicitors in bringing court proceedings, if the tenants remain at the property.

Details of rent guarantee and legal expense insurance are outlined later in this brochure

The Landlord is responsible for providing a safe home for the Tenants, free from major defects, such as damp and leaking roofs etc. and during the tenancy, to let the Tenants have uninterrupted use of the property. We are happy to advise on anything you are unsure of, although most is common sense.

The Main Safety Requirements are as follows:

Gas Safety Regulations:
As most Landlords are now aware, all Gas Appliances at a rented property, including portable appliances, have to be tested prior to the start of the tenancy and then at least annually throughout the tenancy. A CORGI registered plumber will be able to organise the relevant safety certificate confirming that the appliances have been checked and serviced if required, a copy of which needs to be given to the tenant and ourselves. It is a criminal offence not to comply with these regulations.

Furniture and Fire Regulations
All upholstered furniture provided for the Tenant must comply with the Furniture and Fire Regulations (we will provide you with the necessary information prior to the start of the tenancy should you wish to leave any upholstered furniture at the property). A safety label should be attached to the Furniture, however, these can be removed so it is always wise to keep a copy of any purchase invoice details if available, confirming when and where it was bought, as proof that it does comply, or alternatively, take a photograph showing the certificate. Carpets and Curtains are not covered by these regulations and neither are antique items of furniture that are not foam filled, i.e. horsehair filled furniture. Caution must be taken when furniture has been re-upholstered. It must also be pointed out that although Tenants are allowed to have furniture that doesn’t comply, this in no way should be provided by the Landlord, i.e. the landlord cannot give or sell the furniture to the Tenants, to overcome the regulations nor can they leave non compliant furniture in an adjoining part of the building, e.g. locked room or attic where fumes could escape into the main house.

Electrical Safety Regulations
It is a legal requirement that the mains wiring and any portable electrical appliances left in a rented property must be safe for the tenants use. It is necessary therefore to have a suitably qualified electrician to check both the mains wiring and appliances and issue the necessary certificates. We insist that potable appliances are checked every 12 months and the mains wiring every 5 years.

Oil & Solid Fuel Appliances
Again any oil or solid fuel appliances must be safe for the tenants use and therefore they need to be checked on annual basis by a suitably qualified or experienced engineer, with an appropriate certificate or service record issued.

Smoke Detectors
It is not yet a legal requirement to have smoke detectors fitted in a rented property, although this requirement is almost certain to come into force in the future and therefore we would strongly recommend that mains wired smoke detectors are fitted on each floor of a rented property by a suitably qualified electrician. We do however insist that at least 1 battery operated smoke detector is fitted on each floor of a rented property. We will check the smoke detector at the start of each tenancy and we make it a condition of the tenancy that the tenant checks the smoke detectors on a regular basis, replace the batteries when necessary and inform us, if they go wrong.

Chimneys
We also strongly recommend that any chimneys are swept on an annual basis and this may also be a condition of your house insurance.

Carbon Monoxide Detectors
It is not a requirement to install either battery or mains wired carbon monoxide protectors but they do offer extra peace of mind for both the landlord and tenant and if installed should be situated close to any gas or oil appliances
Other Safety Requirements
As stated above the property has to be safe for the tenants occupation and although we will visit the property and try to identify any potential hazards, if the Landlord is aware of any other aspects that might be hazardous these need to be notified to the Tenants & Ourselves in writing, i.e. steep stairs, wells in the garden etc. Due to the potential hazards of some household or garden equipment/ appliances, e.g. lawnmowers/ garden strimmers etc we would strongly recommend that these are not left in a rented property.

In addition, if any appliances are left at a property, it is advisable to leave the original instruction/ safety brochure or copies thereof or if not available written instructions on how to use the appliances.

The Tenants are of course subject to numerous requirements, most of which are common sense and all are included in the Tenancy Agreement. Some of the mains requirements are as follows:

Pay the rent on Time.
Keep the property, its contents and any grounds clean, tidy and in good order at all times.
Not to alter the property, decorations, fixtures and fittings or structure of the property, without permission.
Not to disturb the neighbours or become a nuisance to people outside the property.

Not to keep pets without permission.
To notify us immediately of any damage or repairs required at the property.
To inform you, or us if they are going to be away from the property for any length of time.
Not to carry out any illegal trade or business from the property.
Pay all gas, electric, water and other charges relating to the property, unless they are included within the rent, as stipulated on the tenancy agreement.
Allow the Landlord, or their agent, at all reasonable times to enter the premises for the purpose of inspecting the conditions of the property, having given the Tenant not less than 24 hours written notice.

Most requirements are already covered in our standard terms within the Tenancy Agreement but if there any specific terms or conditions that you would like us to include, please let us know.

It is now possible to take out Insurance to cover both loss of rent and legal fees for evicting a defaulting Tenant. Although this is not a common problem and the referencing procedure eliminates most of the risks involved, it is not possible to be fool proof and Tenants who are financially sound at the start of a tenancy can fall into difficulties.

We can arrange, on your behalf, insurance against both loss of rent and legal fees for evicting a Tenant if they default on rent.

We use Rentshield for this cover and full details of what is and what is not covered is available within their brochure and we will let you have a copy of this, at the start of the tenancy but basically it covers up to 6 months rent arrears or until vacant possession is obtained if earlier, as well as all legal fees involved in obtaining possession.
There costs are as follows:
6 Month Policy £60 (plus IPT at 5%)
12 Month Policy £99 (plus IPT at 5%)
There is also a policy excess equivalent to 1 months rent, which can be reduced to Nil with an additional payment of £20 (plus IPT at 5%) in both cases.

The tenants obviously have to pass the initial referencing procedure before they are acceptable under terms of the insurance policy.

Other Insurance Services
We can also organise at competitive rates, House & Contents Insurance and Emergency Breakdown cover on appliances, fixtures and fittings for Landlords and will be happy to provide further details and quotes upon request and you most inform your insurance company that you have let the property.

Devon Lettings Ltd., are an Introducer for Rentshield Direct of Rentshield House, Unit 9, Broadmeadow Trading Estate, Teignmouth, TQ14 9AE whom are authorised and regulated by the Financial Services Authority whose Register number is 5616550.

We act as Introducers for Rentshield Direct for the above Insurances. All contracts will be with them and as such we hold no responsibility for the payment or otherwise of claims. Clients should read all the Literature and Small Print before committing to any of the Insurance Products.

The Government has recently introduced new legislation on certain residential tenancies described as houses in multiple occupation. In certain circumstances the landlord will need to apply for a license from the local authority, the cost of which will vary from council to council. The basis of this legislation is to improve the safety of properties in certain areas of residential tenancies and to provide the tenants with a minimum standard of accommodation.

Properties covered by this legislation are basically those that are shared by more than 1 family unit and although licensing will initially only apply to a very small proportion of houses the requirements in terms of facilities and safety will affect a far greater number of properties.

This is a complicated area and too in depth to go into here but we are happy to offer further guidance and advice on an individual basis.

The Government has from the 6th April 2007 introduced legislation as to how deposits on residential tenancies are taken and held. Devon Lettings are registered with The Dispute Service and will operate a fully compliant deposit scheme. To meat the criteria for the tenancy deposit scheme we are bound by the rules and regulation of not only the scheme but also of the National Association of Estate Agents and hold both Professional Indemnity Insurance and Client Money Protection. The Client Money Protection means that if we go bankrupt or misuse client money the deposits will be covered and returned to the appropriate person.
The new deposit legislation has been brought in to protect against the very small minority of rogue landlords and agents who withheld deposits unreasonably at the end of the tenancy.
If we are managing a property on behalf of a landlord the deposit will be held by us during the term of the tenancy (no interest will be paid to the landlord or tenant on deposits) and will be returned to the tenant or landlord at the end of the tenancy subject to any damaged caused over and above fair wear and tear and less any rent arrears at the end of the tenancy.

However, the deposit can only be distributed with the permission of both the landlord and tenant and any disputes that cannot be resolved between the respective parties must be referred to the arbitration system of the tenancy deposit service.

This will undoubtedly result in a large amount of extra paperwork and administration at the start and end of the tenancy and we have taken on a specific Inventory Clerk to deal with this work.

For the landlord to make any deduction from a tenants deposit they will need a very detailed Inventory and Schedule of Conditions, which should be agreed with the tenant at the outset of the tenancy.

We will therefore prepare on behalf of the landlord both the Inventory and Schedule of Conditions and take Digital Photographs at the start of the tenancy. The tenant will be given 2 copies of the Inventory at the start of the tenancy for them to check and amend preferably with a member of staff. Where we are also managing the property we will conduct a Check out report and try and resolve any disputes that may arise in terms of cleaning or damage. If agreement cannot be made we will make written representation to the scheme on behalf of our client landlord.

There will be strict guidelines as to what represents damage and what wear and tear a landlord must expect and we will offer guidance should a dispute arise.

Where we are not managing the property on behalf of the landlord, the landlord will have to register with one of the registered schemes themselves or pass the money over to a custodial scheme. We can hold the deposits on behalf of a landlord where we are not managing the property but will charge an administration fee of £50 + VAT per year for this service.
There is however some good news in that as the tenants are likely to feel that their deposit are protected and there is an easy and cheap resolution service, they are less likely to withhold the last months rent, hopefully meaning that genuine damage can be claimed against the deposit. We feel that this legislation protects both the interests of both the Landlord and Tenant and such we are planning to split the costs of running the scheme equally between the landlord and tenant.

Will I have to pay Tax on my letting Income?

Income from rented properties is of course subject to tax, isn’t everything? There are however certain exemptions and obviously some tax deductible expenditures that can be offset against the rental income.

All profit you make from letting should be added to your other taxable income for the year and you will have to pay tax at your highest marginal rate of tax if your total taxable income is greater than your tax allowances.

What expenses can be offset against the rent received?

Only those expenses incurred wholly and exclusively for the purpose of the let, can be offset against your letting income, some examples are as follows:

Water Rates if not paid by the Tenant.
Insurance: Building and Contents as well as insurances against loss of rent.
All of our fees for the Letting and Management of the property.
Mortgage Interest Payments – You may generally claim tax relief on interest payments relating to a loan used to purchase, repair or improve a property, where the interest is paid wholly and exclusively for the purpose of the letting activity.

Generally, costs relating to repair rather than improvement can be offset against tax and on a Repayment mortgage the capital repayment element of the loan cannot be offset against tax. If you have an Endowment, or ISA mortgage, again these costs cannot be offset against your letting income.
This is obviously only a very brief summary of a complicated area and we would strongly advise seeking further advice from an Accountant in this respect.

Taxation for Overseas Landlords

Where a Landlord is going to be non-resident in the UK, we are obliged by law to deduct tax at the basic rate, after expenditure incurred by us and pay this to the Inland Revenue on a quarterly basis. You can apply for the rent to be paid to you gross without tax deducted and if you are going to be residing overseas, please discuss this with us at your earliest opportunity, as we can offer further advice and assistance in this area.

The terms of a legally binding agreement appear below. Please read them carefully and only sign when you have read and fully understood them, and wish to instruct us.

Landlord’s name(s):

Landlord’s address:

Address of property:

Is management included? Yes/No

Date: ………………………………. Signed: ………………………………………….

Terms and Conditions

1. In this Agreement "We" means Devon Lettings Limited, whose registered office is at 4 Market Street, Crediton, Devon, EX17 2AJ. "You" means the person(s) whose name(s) and address appear above. "The property" means the room, flat or house of which there is a brief description above. Clauses 10 to 19 apply only if we are to manage the property for you as well as arrange the initial letting.

Property Letting

2. We will visit the property with you for an initial inspection. We will agree the viewing arrangements with you and whether you wish to show prospective tenants over yourself. We will not normally accompany prospective tenants to unoccupied and unfurnished tenancies and if this is required we reserve the right to make an additional charge for this service.

3. We will advertise the property and circulate details of the property to all appropriate applicants on our register and erect a letting board.

4. We will, from amongst the applicants we have, select (where possible) a shortlist, which we will then
discuss with you. When you have chosen the best applicant, we will take up references as far as we
reasonably can. This will normally include employment references/ accountant’s references, personal references, landlord references (where applicable) and a credit check. If appropriate, we shall try to arrange a guarantor. Although we make these checks, they cannot be foolproof, and we shall not be liable to you in any way for any default of the tenant at any time.

5. We will, when a letting is arranged, prepare a tenancy agreement and forward a copy of this to you, so that you are aware of what your rights and liabilities are, and so that you can tell us if any special terms need to be added to suit you and your property. The agreement will provide for any notices needed under the Housing Acts to reflect what you tell us about your circumstances. The agreement will not under normal circumstances be sent for stamping and although it will still be legally binding on all parties, it may need to be stamped before it is admissible as evidence in court. In the event that you need to take the tenant to court under the terms of the contract, please contact us.

6. We will also arrange for the preparation of an Inventory & Schedule of Conditions the cost of which will depend upon the size of the property and whether or not it is furnished. Under the new Tenancy Deposit Regulations it will be virtually impossible for a Landlord to withhold a tenants deposit without a detailed inventory. We will also wherever possible conduct a Check in Report with the tenants so that any discrepancies on the Inventory can be agreed at the outset and a Check Out Report (Where we are also managing the property) where any cleaning or damage to the property above fair wear and tear can be agreed at the end of the tenancy, hopefully therefore greatly reducing any disputes. The Landlord share of the costs of the Inventory, Schedule of Conditions and Check in & Check out Reports will be on a sliding scale depending upon the size of the property and whether it is furnished as follows: 1 Bed £20 + VAT, 2 Bed £35 + VAT, 3 Bed £50 + VAT, 4 Bed £65 + VAT, 5 Bed or more £80 + VAT. If the property is furnished it will be an additional cost of £25 + VAT in each scenario (£29.38).

7. You will ensure that you have the right to let the property. We will not be liable for making sure that you have good title to the property, or that letting is not prohibited by your deeds. If you have a mortgage or legal charge over the property, or if your property is leasehold, it will be up to you to find out whether you need the lender's and/or landlord's consent to let the property, and to get any consents needed. You will also be liable for ensuring that your property and contents insurers are informed of the letting and for taking any steps they may require. You must ensure that the property and any items in it comply with all relevant regulations, e.g. as to the inspection and safety of gas or oil appliances, the fireproofing of furniture. You will be responsible for checking that the electrical wiring and all electrical appliances left at the property are safe and in good working order. Additionally, you are responsible for making sure that the property itself is safe and in a habitable condition and any unusual hazards (e.g.: wells) are notified to us, or the tenant in writing. You will indemnify us against any liability to any third party. We also require at least 1 battery or mains wired smoke detector to be fitted on each floor of the property.

8. We will collect from the tenant at the start of the tenancy the first rental payment and, after clearance, pay the balance due to your chosen account. We will also collect a fee from the tenant in respect of the costs of references, preparing the tenancy agreement and inventories etc. We will also collect a deposit, which is subject to the new Tenancy Deposit Regulations, and will need to be held by either you or us in line with the rules and regulations of one of the approved schemes as detailed in Section 22 at the end of this agreement. Where we are not managing a property nor holding the deposit on behalf of the landlord, the landlord agrees to hold the deposit within one of the approved schemes. Failure to hold the deposit in one of the approved schemes can result in court action being taken against you. More details of the various schemes can be found at www.communities.gov.uk If we are not managing the property but the landlord wishes us to hold the deposit we will do so on their behalf but we will charge an administration fee of £50 + VAT per year for this service, which will also include dealing with and disputes arising as detailed in Section 22 below.

9. You will pay us, in addition to the Inventory costs detailed above, in the event and at the time of completion of a tenancy, the sum equivalent to half of the first month’s rent + VAT, subject to a minimum fee of £400.00 + VAT (or £200 plus VAT if we are also to be managing the property after completion of the tenancy) plus any additional charges there may be, which if applicable will be agreed separately in writing with you. We may deduct those amounts from monies received by us from the tenant. Value Added Tax will be added to any sums payable under this agreement if we are obliged by law to charge it. If we are instructed by you to market the property either verbally or in writing but you subsequently find a tenant directly or via another agent or for whatever reason decide not to proceed with the letting of the property, we will charge a fee of £100 plus VAT, to cover our administration costs and advertising expenses.

10. If the Landlord’s place of residence is outside the United Kingdom, we are liable to deduct basic rate tax from the rent after expenses and forward this to the Inland Revenue. Landlords can apply to have the rent paid without the deduction of tax and we can offer advice and assistance in this matter if applicable. We may be required also from time to time to provide the Inland Revenue with details of all Landlords for whom we acted and gross rental income received.

Property Management

11. We will arrange for the rent to be paid by the tenant into our client account. We will maintain fully computerised records of all payments, and if any payments are late will use our best endeavours to get payment from the tenant. We shall account to you for any payments received (less any sums due from you to us or as set out below) as soon as reasonably practical after they have been cleared into our bank account.

12. We will visit the property at the start and end of the tenancy, as well as regularly whilst it continues, and if there is any emergency. We will report any problems to you, and agree with you whether any works need to be done to the property. If we find any default on the tenant's behalf we will write to the tenant to advise of that and to require remedial action. No extra charge is made for these visits.

13. We will act as your agents in arranging any works to the property, which may be agreed as necessary. Further, you hereby authorise us, in the case of emergency or in circumstances where you cannot be contacted, to arrange for works to the property up to a maximum overall cost (plus VAT) of two hundred pounds (£200) at our sole and absolute discretion. We will arrange contractors if required, or will instruct contractors of your choice. The charges of any such contractors will be payable by you (whether arranged through us or not) and we shall have no contractual obligation to them, but we shall be entitled to deduct any amounts properly due to them from any monies held by us on your behalf. If we are instructed by you to organise major repairs or improvements to a property, the total cost of which exceeds £750, we will charge an additional 10% + VAT on the overall cost of this work. This charge is to cover our administration costs for obtaining quotations, organising and overseeing works, checking that works have been completed, payment of workmen and preparing statements of costs. Although these works may be organised by us we will be acting upon your instructions and the liabilities for the payments of such works remains with the Landlord.

14. We will deal with any routine queries regarding the property or the tenancy, and will liase as necessary with the local authority (including the Housing Benefit department) and the various utility companies. We will promptly advise you of any matters thus arising, which need to be brought to your attention.

15. We will prepare and serve any notices, which may be necessary during the tenancy, including any notices that you require to recover possession, and any notices to quit.

16. Where the rent is being paid direct to us from local authorities, you authorise us to collect this on your behalf. If a tenant makes a false claim for housing benefit and the rent is being paid direct to ourselves, this money may be reclaimed by the local authority involved. If such an event arises, you will refund to us any money that has been paid to you in rent upon request from ourselves, in respect of false claims from the tenant.

17. We can arrange, on your behalf, insurance against both loss of rent and legal fees for evicting a tenant, if they default on the rent. The cost for a 6 month policy is £60 or £99 for a 12 month policy and the excess, normally 1 months rent can be reduced to nil by the payment of an additional £20 premium. All of the above costs are subject to Insurance Premium Tax, currently 5% of the premium. The policy which will be arranged via Rentshield Direct, and covers loss of rent for up to 6 months, or until vacant possession is obtained if earlier, as well as the legal fees for evicting the tenant. Customers should obtain, read and fully understand the policy wording before proceeding with an insurance product.

18. You will pay us 12% of the rent due per property and recoverable during the tenancy, plus any Value Added Tax we may be obliged by law to charge thereon. We can deduct any such sums from any rents or other monies received.

19. Either you or we can end this agreement by not less than three months' written notice.

20. We will not be obliged to issue court proceedings or other forms of enforcement against any tenant, and will not be liable for any failure of the tenant to make any payment due or perform any term of the tenancy agreement. In the event that legal proceedings are necessary we will if requested liase with the relevant solicitors. We can arrange legal representation if needed, or you are free to instruct solicitors of your choice.

21. We may receive commission / remuneration on the sale of Insurance or related products arranged in conjunction with the property or the tenancy as well as for arranging repairs and maintenance on the property and will disclose to you any such amounts upon written request.

22. Under the Tenancy Deposit Regulations there are strict rules and regulations as to how tenants deposits are taken and held and how they can be distributed at the end of the tenancy. For properties under management we will hold the deposits within the rules and regulations of the Tenancy Deposit Service and to comply with these regulations we hold Professional Indemnity Insurance, a ring fenced Client Account and Client Money Protection Insurance. We will abide by the rules of the scheme and deal with administration involved in any disputes that may arise with regard to the returning of the deposit monies at the end of the tenancy. This will include submitting paperwork and evidence to the Independent Case Examiner of the TDS in the event of a dispute. The Deposits will be held as Stakeholder for the Landlord and Tenant, which means deposits, can only be returned or distributed with the agreement of both the landlord and Tenant. Interest on deposit will be kept by Devon Lettings to help towards the costs of the administration of the scheme.

Ref: L&MA DEC 2007