Tenant Fees Leicester
We would like to provide clarity of the fees that may become payable during a tenancy you are looking to enter into. We believe you should understand these before you make any decision about a property or before you decide to view a property.
Acceptance of any offer will be subject to contract, referencing and immigration checks. You will need to pay the Rent and Deposit that is due under a Tenancy Deposit, or where the landlord is offering the property with a deposit replacement guarantee product, and you wish to take up this option, you will need to provide proof that you have purchased such a product by providing us with a copy of the insurance certificate before a tenancy can start.
Referencing and Right to Rent Checks
You will be asked to complete an application before referencing can be undertaken, you should also provide an original photographic Identification (e.g. passport, National ID card, VISA, resident permit, driving licence) and Proof of Residence (e.g. original utility bill, council tax bill or bank statement all of which much be less than 3 months old) if you have any queries relating to this please speak to the branch you are dealing with.
You should be aware that the need for a guarantor may not become apparent until your referencing (including references for any joint tenants) has been completed. Where a guarantor is required they will need to complete an application form and provide photographic identification and proof of residence.
Referencing will cover a check against the credit file and public records of the individual, an Anti-Money Laundering check, confirmation of employment and salary details, confirmation of previous tenancy details, right to rent checks, reporting the results of all those checks to your prospective landlord to see if your application is acceptable.
Tenant deposit – from 1 June 2019 landlords in England are limited to the equivalent of 5 weeks rent for new and renewed tenancies (or 6 weeks if the annual rent is £50,000 or more). This is calculated by dividing the annual rent by 52 and multiplying by 5 (or 6 if rent is £50,000 or more) and will be required to be paid at the start of the tenancy. This is subject to referencing.
Tenant Fees Act 2019 permits certain fees / charges to be made under the following circumstances:
|Default fee for late payment of rent||3% above Bank of England rate will be applied 14 days after rent due date.|
|Loss of a key or other security device||Landlords and letting agents can charge a tenant a fee to cover the cost of replacing the lost key or security device (e.g. fob, electronic device for garage doors / security gates). The cost will be dependent on the type of key/ fob or electronic device. The tenants are also liable for the cost of £15.00 per hour to cover Locksmith charges.|
|Payment on variation, assignment or novation of a tenancy||When a tenant has requested it, landlords and letting agents can charge to vary, assign or replace a tenancy. Fee charge £50|
|Payment on termination of a tenancy||Landlords and letting agents can require a tenant to make a payment for an early termination (surrender) of the tenancy agreement at the tenant’s request. Full details can be found on your tenancy agreement.|
|Company application fee||Equivalent to 1 weeks rent.(calculated as: monthly rent x 12 months divided by 52 weeks).|
Tenant Fees Act 2019 and Existing Tenancies
Explanation of our tenant fees permitted under the Tenant Fees Act 2019 transitional provisions, where fees are written into existing tenancy agreements. These apply to all tenancy agreements granted or signed and executed before 31st May 2019, and can be charged up until 31st May 2020:
|Negotiating and Agreeing a renewal / extension to your tenancy (tenant share)||One off charge for each renewal/extension Negotiating and agreeing a tenancy renewal between you and your landlord, including any special clauses or requirements which have been requested, once negotiations are finalised produce final copies. Cost £50.00|
|Rent Arrears Letter||Cost of each rent arrears letter resulting from rent not being paid, remaining unpaid, and requesting payment. Cost £30.00|
|Breach of tenancy agreement letter||Cost of breach letter resulting from the tenant breaching the tenancy agreement and requesting that the breach be stopped and remedied. Cost £30.00|
You should be aware that the need for a guarantor may not become apparent until your referencing (including references for any joint tenants) has been completed. Where a guarantor is required they will need to complete an application form and provide photographic identification and proof of residence. Please ask us to explain these to you, once we know your circumstance and how many tenants are applying for the property you are interested in, we can confirm the fees that could become payable.
Seven Estates Ltd is a member of CMP (client money protect), which is a client money protection scheme, and also members of The Property Ombudsman.
You can find out more details by contacting us directly.