Tenancy application process and fees
Posted in 14th March 2017 by nigel.crossley
Purpose of this guide:
- to inform prospective tenants of the procedures and requirements relating to applying for a typical tenancy; and
- to inform potential and existing tenants and guarantors about the circumstances where fees are and are not payable by them.
Once you have found a suitable property with us, all persons aged eighteen or over will be required to complete our application process. This involves a credit check; an employer’s reference or verification of your income/affordability; current or previous landlord reference and verification of your ID. In some circumstances, a guarantor will be required, and they will be subject to the same application process.
Except as stated below, no application fees or any other fees are payable by tenants and guarantors in respect of any tenancy. Therefore, there are no check-in fees, check-out (or ‘exit’) fees, administration fees, inventory fees, or guarantor fees payable by tenants or guarantors. In addition, no charges are payable by tenants to change a joint tenancy agreement to reflect a change of sharer should one tenant leave and be replaced by another.
However, fees may be charged for:
- Landlord references – currently £36 including VAT;
- Default fees – typical examples include fees in respect of missed appointments; charges payable by a landlord arising where a landlord arranges with a tenant for a contractor to carry out remedial work at a property, and a tenant subsequently refusing entry, or not being home to allow entry; and to cover the cost of replacement keys and delivery of those keys to the tenant;
- Damage to a property caused by neglect or careless or wilful behaviour by the tenant; and
- in relation to tenancies granted before 1 September 2019, fees such as check-out (or ‘exit’) fees, administration fees, inventory fees as outlined in the tenancy agreement.
For further details relating to fees which may apply to your tenancy, you are welcome to enquire using the contact details at Contact Us.
We do not charge tenants, guarantors or prospective tenants or guarantors for credit checks. However, at the discretion of either the landlord or us as agent, an applicant or a guarantor may be required to obtain his or her own credit report at his or her own cost.
On receipt of an offer of a tenancy, the applicant will be required to complete and sign the tenancy agreement within 14 days and to pay a holding deposit (one week’s rent). This will go in its entirety towards the first month’s rent.
There is a right to retention to the holding deposit for failing to enter a tenancy agreement in that should a tenant choose not to enter a tenancy agreement, or fail to take reasonable steps to enter a tenancy agreement, a landlord or agent may be able to retain the holding deposit. This right to retention becomes live 48 hours after having paid the holding deposit.
Reasonable steps would include providing the information a landlord or agent would require to set up a tenancy when requested. Again, each case will be different and a landlord or agent would need to be content that a tenant was clear of what was required of them, but had failed to necessary steps as agreed.
If both parties do not agree to enter into a tenancy, then the holding deposit must be repaid within seven days of the deadline for agreement, whether that is 15 days from receipt, or another date as agreed in writing.
If a guarantor is required, the guarantor must sign and complete a declaration within the same time period.
The first month’s rent and the deposit must be paid at the same time as the tenancy agreement is signed. Keys will not be released until:
- all funds, including the deposit, having cleared; or
- the start date of the tenancy.
Rental payment is still due for any part of the tenancy when the keys are withheld due to late clearing of the first month’s rent, deposit or both.
A tenancy deposit (bond) equivalent to one month’s rent (plus £100 in the case of a furnished property) is payable (for properties in Wales) at the commencement of the tenancy and is held for the duration of the tenancy. In the event pets are permitted at the property, the deposit will be subject to an increase to be agreed between the landlord and tenant.