Under new Government Regulations Tenants fees have been prohibited as of 1st June 2019. The only permitted payments under The Tenant Fees Act are:-
This has to be paid in full on the agreed rental date as stated in the tenancy agreement. If payments are late interest will be charged at the rate of 3% above the Bank of England base rate which is currently at 0.75%. This percentage is 0.0375%. This can only be calculated if the rent is late beyond 14 days and then calculated for the whole term. Eg 26 days in arrears. An example of the calculation is:-
£500 rent arrears and 26 days outstanding.
£500 x 0.0375 = £18.75
18.75 ÷ 365 = £0.051
5.1p x 26 days = £1.34
The security deposit is 5 weeks of the monthly rent up to an annual rent of £50,000 and 6 weeks if the annual rent exceeds £50,000. The security deposit covers damages or defaults on the part of the tenancy during the tenancy.
This is to reserve a property. Once the tenant has agreed to rent a property and the landlord has accepted (subject to referencing) we will ask the tenant to pay a refundable holding deposit which will be the equivalent of one weeks’ rent. Example: Rent is £900 per calendar month x 12 months = £10,800 ÷ 52 weeks = £207.69. The holding deposit can be held for up to 15 days or longer only if previously agreed with the tenant in writing. Once the tenancy commences the holding deposit will be deducted from the first months’ rent.
NB. The holding deposit will be withheld if any relevant person (including any guarantor(s) withdraw from the tenancy, fail a Right To Rent check, knowingly provide false or misleading information which will affect their reference, withdraw from the tenancy ie change their mind, or fail to sign their tenancy agreement within 15 calendar days (or any other deadline which has been mutually agreed for the tenancy agreement). In any of these circumstances the holding deposit will be kept by the agent/landlord. If the agent/landlord withdraws from the tenancy the holding deposit will be refunded to the tenant.
CHANGES TO THE TENANCY AGREEMENT:
If any changes are made to an existing tenancy agreement such as a tenants name, and if the landlord is in agreement then a charge of £50.00 including VAT may be charged.
LOSS OF KEYS OR SECURITY FOB/DEVICE:
If a tenant has lost their keys or any form of security device they will be responsible for the cost of replacement of the said items.
If the lock has to be changed for security reasons then the tenant will have to pay that cost as well.
CLIENT MONEY PROTECTION (CMP) PROVIDED BY :- ARLA - CLICK HERE TO VIEW OUR CERTIFICATE
INDEPENDENT REDRESS PROVIDED BY: - TPOs