This is a summary of the commission fees that you as the Landlord agree to pay us for providing our Letting Service and/or our Management Service.

For a detailed explanation of what is included in our Letting and Management Service, please refer to our Landlords Guide found under the Landlords tab on this website.

If we are successful in introducing a Tenant that enters into an agreement to rent the property, our commission fees remain due for initial term of the tenancy and if the Tenancy is renewed or extended for a further term and subsequent terms thereafter to include any periodic continuation of the tenancy beyond the original term (even if terms and conditions are changed) with the original Tenant(s) or with any associated party of the original Tenant. he following charges relate to all Housing Act and non-Housing Act tenancy types. Commission fees will be charged as follows:

Letting Service.

Letting commission fees for the introduction of a Tenant who enters into an agreement to rent the property for more than six months, at 12% inclusive of VAT, (10% plus VAT) of the gross rental for the initial term of the Tenancy Agreement. 

 

The commission will be invoiced in advance on a six monthly basis from the commencement of the Tenancy with any balance of invoiced commission becoming due. In the event a Tenant exercises a notice to leave for Housing Act tenancies or a break clause for non-Housing Act tenancies in accordance with the terms of the tenancy agreement, we will return a proportion of the commission paid, on a pro rata basis for the unexpired term.

Tenancy Renewals,Extensions and any Periodic continuation.

If the Tenancy is renewed or extended for a further term and subsequent terms thereafter to include any periodic continuation of the tenancy beyond the original term (even if terms and conditions are changed) with the original Tenant(s) or with any associated party of the original Tenant, then commission is payable, at 9.6% inclusive of VAT, (8% plus VAT) of the rent for the whole time your Tenant stays in the property. 

 

The commission will be invoiced in advance on a six monthly basis from the commencement of the renewed or extended for a further term and subsequent terms thereafter to include any periodic continuation of the tenancy with any balance of invoiced commission becoming due. In the event a Tenant exercises a notice to leave for Housing Act tenancies or a break clause for non-Housing Act tenancies in accordance with the terms of the tenancy agreement, we will return a proportion of the commission paid, on a pro rata basis for the unexpired term.

Management Service.

Combined with our Letting Service at an additional 6% inclusive of VAT, (5% plus VAT) of the gross rental for the full term of the Tenancy Agreement to include any tenancy renewals, extensions and any periodic continuation of the tenancy. The commission for the Letting Service will be deducted as detailed in the section above titled Letting Service.Our management commission will be invoiced in advance and deducted monthly from rents received or invoiced in advance if we do not collect the rent. Full details for all of our services and charges are included in our Terms and Conditions of Business for Residential Lettings and Management. A copy is available on request.

Sale of the Property.

If the Landlord sells the property subject to the tenancy during the original term or if the tenancy is renewed or extended for a further term and subsequent terms thereafter to include any periodic continuation of the tenancy they will continue to be liable for our commission fees. The Landlord may assign his obligations to the Purchaser, but must first obtain the prospective owner’s agreement in writing before they complete the sale. If the Purchaser agrees to take over the Landlords obligation to us, we will require their name, address and signed agreement with their undertaking to be responsible for our commission fees otherwise the Landlord will remain liable for the commission fees until such time as the Tenant (or any person or company connected with this Tenant) vacates the property. We do not charge a fee if the Landlords sells the property to the Tenant.

Fees example.

12 month letting service at a rental of £2,000.00 per calendar month, Total commission fees at 12% inclusive of VAT will equal £2,880.00, (10% plus VAT will equal £2,400.00).

12 month letting and management service at a rental of £2,000.00 per calendar month, Total commission fees at 18% inclusive of VAT will equal £4,320.00, (15% plus VAT will equal £3,600.00).

VAT (Value Added Tax). Please note that all commission and fees are subject to VAT at the prevailing rate. Paul Lee & Company VAT Reg. No: 719 0206 57.