Residential Letting Agents

When you have found the right property, you will need to secure it through making an 'offer'. There are some costs to consider at this stage

Holding deposit

You will be required to pay a holding deposit, which is usually the equivalent of one week's rent and which will be offset against the first rental payment if the tenancy goes ahead. You need to carefully read the terms of the holding deposit receipt before signing it. In some circumstances, you may be refunded all or part of this money if the tenancy does not go ahead, in some circumstances you will not.

Referencing for individual tenant or guarantor

Reference checks are carried out on prospective tenants to confirm that they have previously rented without any major issues. Credit checks are carried out to ensure that prospective tenants can afford the monthly rent and have no serious adverse credit problems. You may be required to provide a guarantor for the tenancy, who will also need to undergo the referencing process. At Anthony Fox Estates, we advise our landlords to use an independent specialist referencing company for this purpose.

If the tenancy is to be an Assured Shorthold Tenancy (AST), the landlord will pay the cost of any referencing. Where the proposed tenancy is not going to be an AST, you may be required to pay for referencing.

If your offer has been accepted (subject to contract and satisfactory references) then before the tenancy starts you will need to make the following payments at this stage of the process:

Rent

Usually equivalent to one month’s rent, but as set out in the tenancy agreement. The holding deposit will be deducted from the first payment. Further rent payments will usually then be collected via direct debit from your nominated UK bank account or you may be required to set up a standing order.

Security deposit

Under the Tenant Fee Act 2019, if your tenancy is an AST there is a limit to the amount of deposit you can be required to pay. For tenancies with a rent up to £50,000 per annum, this is no more than the equivalent of five weeks' rent. For tenancies over £50,000 per annum, this will be no more than the equivalent of six weeks' rent.

There is no restriction for tenancies which are not ASTs. This deposit is assurance to the landlord that when you move out, their rented property will be left in a good condition. If the property is not left in a state fit for purpose, your landlord or letting agent may deduct a reasonable sum from your deposit to cover the cost of rectifying any damage.

There may also be some other costs throughout your tenancy, including:

Amendments or changes to the tenancy term

Should you wish to make any changes or amendments to the terms of the agreement once the tenancy has started then, dependent upon your landlord agreeing, we will draw up an addendum to the agreement.

Early release

If for any reason you request to end the tenancy earlier than the end date set out in the tenancy agreement (or in line with any break clause included in the tenancy agreement), your landlord does not have to agree to this. However, should your landlord agree, then they can ask you to reimburse them for any financial loss they might suffer as a result.

Change of sharer

If you are sharing with more than one person, your landlord does not have to agree to you changing any of the named tenants during the tenancy term. However, they may agree to do so subject to a reasonable charge as this involves creating a brand- new tenancy.

If you are unsure about bill costs once you have decided on a property, ask your letting agent, who may be able to provide you with an estimate of utility bills based on the current tenants’ utility costs.

Typical household bills may include:

It is important to always keep on top of your monthly bills to maintain a good credit rating.

Once you have agreed the let in principle you will be required to provide documentation to confirm your identity, residence and right to rent in the UK. For UK and non-UK residents, this will include providing an original document from each of the following lists:

• Right to rent Check
  Anyone over the age of 18 who wishes to rent a property in England, or live in the property with a tenant, must by law provide evidence of their Right to Rent before the tenancy can start. This is usually by means of a passport and visa documentation where relevant. If you cannot provide this, please ask us for a list of other acceptable documents.
• Evidence of Residency
  It is important to note that proof of residency documentation must be dated in the last three months and the address must match your current address or as supplied on the reference application form.
• Current driving licence
• Recent bank or building society statements
• Council tax bill
• Utility bill
• Current TV licence
• Mortgage statement
• Homeowner's current insurance schedule
• Current tenancy agreement (signed within the last six months)
• Home service provider bill (for example broadband, digital TV statement)
• Homeowner’s insurance schedule
• Letter from employer confirming address (signed, dated and printed on headed paper)
• Correspondence relating to local housing allowance or benefit

Reference checks are carried out on prospective tenants to confirm that they have previously rented without any major issues and are in employment. Credit checks are carried to ensure that prospective tenants can afford the monthly rent and have no serious adverse credit history.

Clarify with the agent what criteria needs to be met and, if you are concerned that you might fail the checks, whether the landlord will agree to you having a guarantor.

If your tenancy is not going to be an AST, you will be asked to pay for the reference check.

This charge is usually non-refundable once the referencing process has begun.

You will not be refunded if you fail the referencing process, so it is important to have all the relevant information required before undergoing the check.

When you have paid the holding deposit, referencing has been completed and you have secured the property subject to contract, the letting agent will draft the tenancy agreement. Once issued, read it carefully through and ask any questions you have before signing and returning it. You should always seek independent legal advice before signing the contract. You will be required to pay the initial funds before the tenancy starts, which includes the initial rental payment and the tenancy deposit. All deposits for Assured Shorthold Tenancies (AST) in England and Wales must be protected by one of the government approved tenancy deposit protection schemes. There are three approved schemes offering both an insured or custodial service. At Anthony Fox Estates we use the Deposit Protection Service Custodial Scheme (DPS).

There are different types of tenancy agreements, the most common being the Assured Shorthold Tenancy (AST). Your tenancy will be an AST if all the criteria are met:

• Your tenancy started on or after 15th January 1989
• You are an individual and not renting as a company
The property is your main accommodation
• Your landlord does not live in the property or in the same building, where the building has been converted into flats 
• The rent is not more than £100,000 per annum 

If you share the property with others, your tenancy will likely be a Joint and Several Liability Tenancy, meaning that you are all jointly and individually responsible for paying the rent. For instance, if one person falls behind in their rent, you are all responsible for paying it, or any arrears that arise because of it.

Deposit

Most private landlords and letting agents require a deposit to be paid by tenants before moving into a property, to ensure that upon vacating, it will be returned in the same condition it was at the start.

For an AST tenancy, the deposit must be held in one of the three government- approved tenancy deposit protection schemes.

Once the landlord or letting agent has received the deposit, they have 30 days to provide details of the scheme being used, including:

• The name and contact details of the scheme and its dispute resolution service
• How the deposit is protected (some schemes hold the deposit, and others insure it)
• Reasons they would make deductions from the deposit
• How to apply to get the deposit back
• The dispute process for deposits

Deductions can be made if damage beyond ‘reasonable wear and tear’ (the relevant scheme will provide guidance on this) is sustained to the property, but they must be agreed by both parties (the landlord or letting agent and the tenant or tenants).

If there is a dispute about deductions between the landlord or agent and the tenant, the deposit will be protected by the scheme until the issue is resolved, so long as a request for adjudication is made within 3 months of the tenancy ending. If you are unsure if your deposit has been placed in a tenancy deposit protection scheme, ask your landlord or letting agent, or contact the scheme directly.

Your Rights as a Tenant

• To live in a safe and secure property, which is in a good state of repair – including the structure and exterior of the property, drains and pipes, gutters, windows, sanitary installations (baths, basins, toilets and sinks) and gas, water and electric installations
• To be treated fairly regardless of disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex or sexual orientation
• Be protected from unfair rent and unfair eviction
• General and emergency repairs must be carried out by the landlord, agent or their appointed person - this does not include repairs for damage caused by tenants
• To have contact details for the landlord or managing agent
• To live in the property undisturbed – the landlord or agent must provide at least 24 hours notice to visit the property, at a reasonable time of day, unless there is an emergency
• The landlord must provide energy performance certificates for the property
• If there is a gas supply to the property, the landlord must provide a valid gas safety certificate throughout the tenancy
• An electrical safety condition report must be provided to you by the landlord at the start of the tenancy 
• The landlord must ensure that there is a smoke alarm on each storey of the property and a carbon monoxide detector in any room which has an affixed fuel burning appliance (except gas cookers) 
• The landlord must ensure that any supplied furniture and furnishings are compliant with the Furniture and Furnishings (Fire) Safety Regulations 1998.
• Reasonable adjustments should be allowed to accommodate tenants with disabilities
• The landlord may not change the locks without informing you and providing a new set of keys
• If the property becomes uninhabitable due to damage caused by insured risk not caused by the tenant, the landlord should waive the rent until the property is fit for occupation. The landlord is not required to find you, or pay for, alternative accommodation – check that a clause to this effect is included in the tenancy agreement
• The landlord should give you proper notice to end the tenancy in line with the type of tenancy and the terms of the tenancy agreement

Your Responsibilities as a Tenant

• Pay the agreed rent on time, even if repairs are needed or there is a dispute with the landlord
• Pay any utility bills not included in the rent, including TV licence
• Not undertake any illegal or immoral activity within the property or its grounds
• Look after the property and notify the landlord or agent of any issues or necessary repairs
• Acquire permission from the landlord before carrying out any decoration or minor repairs
• Do not sublet or take in a lodger, without the express permission of the landlord
• Do not smoke inside the property, unless agreed in writing by the landlord
• Do not keep pets at the property, unless agreed in writing by the landlord
• Understand how to operate the boiler, heating and other appliances
• Be aware of the location of the stop cock, fuse box and any meters
• Regularly test any fire and smoke alarms, and carbon monoxide detectors
• Be flexible and allow the landlord, agent and appointed workmen or engineers access to the property when required, when 24 hours’ notice has been given, or there is an emergency
• Be considerate to neighbours
• Adhere to any rules and regulations of the building, if renting a flat in a block
• Notify the landlord or agent if you are planning to be away from the property for longer than the period stipulated in the tenancy agreement, as this may affect their insurance policy
• Give the required amount of notice to vacate the property – check the tenancy agreement for confirmation
• Return the property in at least the same condition as at the start notwithstanding fair wear and tear

• Ensure you have read and understood the tenancy agreement, signed and returned it
• Ensure you have paid the initial rent and deposit. You won't be allowed to move in until you have done so.
• Attend the inventory check-in appointment or collect the keys for your new property from the letting agent or landlord
• Take gas, electricity and water readings at your new property

• Submit final electricity, gas and water meter readings to the relevant utility providers
• Ensure you remove all personal items and that the property is cleaned to at least the same standard as at the start of the tenancy and furniture is returned to its original place
• Repair any damage caused to the property during your tenancy and replace any items that cannot be repaired, retaining receipts for your records
• Return the keys to the inventory clerk if a check out has been booked, or to the landlord or letting agent if not. Obtain a receipt.