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Applying for a Tenancy – all you need to know
Fees and charges payable in connection with the tenancy.
1. Application fees.
Q. Why do I have to pay an application fee?
A. We have to provide references for our Landlord clients, one of which must be of a financial nature. All agents are obliged to do this. These references can only be obtained with your consent, after you have signed an application form. The references are taken up through a credit reference agency or Insurance Company and must be paid for.
Q. How much does it cost?
A. £50.00 for each applicant who is applying for the tenancy. Every person who is over 18 years of age and will reside at the property must be included in the Tenancy Agreement and have previously provided references.
Q. How long does it take?
A. Usually 3 – 4 days. The referencing process involves credit checks and confirming employment details. Additional information is required for the self-employed and tenants who may have retired.
Q. What if this is a Company let?
A. If the tenancy is to be taken in your employer’s name, different information is required and a fee of £100.00 plus VAT applies.
2. Tenancy Agreement costs.
Q. Why is a written tenancy agreement necessary?
A. The tenancy agreement is the contract between the Landlord and yourself. It could be verbal but this is not recommended as verbal agreements are easily disputed. The Tenancy Agreement is covered by the Housing Acts and is for the protection of both Landlord and the Tenant.
Q. How much will this cost?
A. The cost is split between the Landlord and the Tenant. This will normally be an Assured Shorthold tenancy agreement – unless the tenant is a private or public company. The cost is £50.00 for up to two named tenants and a further £50.00 for each additional tenant.
3. Rental and Security Deposits.
Q. How and when is rent payable?
A. Rent is payable monthly in advance, on the day the tenancy starts. If you wish to pay by personal cheque initially, please see below. Subsequent rental payments may be made by cheque, cash or Bankers Standing Order, as the Landlord requires.
Q. How much is the Security Deposit? (sometimes called a Bond)
A. The Security Deposit will always be at least the same amount as the rent plus £100 extra. (e.g. a property with a rent of £500.00 would require a Security Deposit of £600.00).
Q. What happens to my Deposit?
A. Basically, your deposit is held as security against loss damage or other claims by the Landlord. This will be held by us, your Landlord or in a special scheme for the duration of the Tenancy.
New Government rules will automatically apply to tenants deposits from April 2007, which should make the practice of dealing with deposits much fairer and easier. After April 2007, there will be dispute resolution available to both parties, if both are unable to agree on the question of damages etc. at the end of the tenancy.
Important Note:
We regret that keys to properties cannot be released until the rent and Security Deposit has been paid in full. If personal cheques are to be used, we may require separate cheques for the rent and deposit and sufficient time for these to be cleared (normally 5 working days). Alternatively, these sums may be paid in cash, by Bankers Draft or by B.A.C.S. transfer from your Bank. Unfortunately, we are not able to accept payment by Credit or Debit card.
4. Inventories.
Q. What’s an Inventory for?
A. A typewritten Inventory of the contents of the property is prepared for both furnished and unfurnished lettings. The Inventory is a record of the general condition of the property as you found it on entry at the start of your tenancy therefore it is important to get this right. You will be provided with two copies and the Inventory should be checked at the property as soon as possible. We may not be able to check you into the house (usually because you are going in after office hours or at weekends). You must return one signed copy of the Inventory to us within 7 days of the start of your tenancy, noting any discrepancies or errors – otherwise we will assume the Inventory is entirely correct.
5. Utilities and Council Tax.
Q. What happens about gas, electricity, Council Tax and Water Rates?
A. We take meter readings wherever possible and contact the gas and electric suppliers advising the readings and your occupation date. The same procedure is followed for Council Tax and Water Rates.
N.B. Please note that we cannot deal with telecommunications matters on your behalf as BT and the like will not allow us to do this.
Equally, you may have to contact the Council or other responsible body yourself to claim any allowances or discounts to which you may be legally entitled. This is usually because of fraud prevention measures in operation.
6. Housing Benefit.
Q. What if I am going to claim Housing Benefit?
A. You should make this fact very clear to either your Landlord or ourselves before the tenancy starts and certainly when making your application. Some Landlords do not and cannot accept Housing Benefit. We will confirm the position when you apply. It may be necessary for you to contact the local authority for a Pre-Tenancy determination. Housing benefit will normally be paid direct to the Landlord.
Ending the Tenancy.
Your tenancy will normally end after 6 months, unless the contract was for a longer initial “fixed period”. Always refer to the Tenancy Agreement. You must always pay rent for the full period of the tenancy.
It is not acceptable to miss your last month’s rent and tell the Landlord to keep the deposit – remember, new rules apply to deposits and this may not be available to the Landlord or his Agent.
After the initial period, you will need to give your Landlord or his Agent 1 months notice in writing to end the tenancy. This must be given at a point in any month no later than one day before your tenancy anniversary date i.e. the day of the month it started. If you tenancy started on the 20th day, for example, give notice by the 19th at latest. Your tenancy will then come to an end on the 19th day of the month following. The rules for Landlords are that they must give you two months notice after the initial fixed period. The rule concerning the anniversary date just mentioned above still applies.