Below is an example of the Terms of Business you will be required to sign if you decide to proceed with renting one of our properties. It will be customised to you and the property you have applied for. The Date of Agreement is usually 15 days from the date the Terms of Business have been signed.
You have applied to rent the property listed above on an initial six month Assured Shorthold Tenancy (AST). We require £XXX (equivalent to one week’s rent) to be paid to us as a holding deposit. The holding deposit will secure the property on your behalf whilst we conduct the following checks on behalf of the landlord and is protected under the Client Money Protection scheme. The Deadline for Agreement will be DATE. (This may be extended by mutual agreement.)
- Credit Check. This will state your credit score and reveal any current or spent County Court Judgements (CCJ’s) IVA’s or Bankruptcy notices (and the amounts involved). The credit check will search ALL addresses that you have been known to reside, or are associated with, not just your current address. It is therefore important that you declare any known debt notices or poor/low credit score. We would therefore recommend that you conduct your own search prior to applying. This will not leave a footprint on your record. In some circumstances a Landlord may still agree a tenancy with poor credit worthiness but may ask that a guarantor is put in place. The guarantor may also be asked to undergo a financial check
- Proof of Income. You will be asked to provide information to ensure that you have the financial means to pay the rent due on the property for the duration of the fixed term. We may ask for employers contact details, bank statements or pay slips. If you are self-employed, you will be asked to produce an HMRC self-assessment form for the relevant financial period or accountant’s contact details
- Landlord’s Reference (If applicable). Either your landlord or your Letting Agent will be approached to provide the following information: – Your current rent liability and whether this amount has consistently been paid in full and on the rent due date specified in your AST. The term of your tenancy and whether there have been any breaches
- Right to Rent Check. We are required by law to check all prospective tenant’s immigration status. This includes British and EU nationals. We will ask for original documents. These will include: – valid Passport, Driving License, Utility bills (not more than 3 months old), Visa(s) and right to remain documents. A full list of accepted forms of ID and proof of address are available on request. Copies of these documents will be kept securely by Carter & May for the duration of your tenancy and for 12 months after your tenancy has ended, when they will be destroyed.
Once the Tenancy has been agreed with both parties, the holding deposit can be put towards the deposit required on the property for any agreed damages or dilapidations at the end of the tenancy. These funds will be held with the Deposit Protection Scheme (DPS) for the duration of your tenancy. Alternatively, you may request to have these monies refunded to you if this is your preference.
If a Tenancy is NOT agreed, then the holding deposit (or part of) may be withheld under the following conditions: –
- You fail to disclose any known information that is likely to result in your failing the referencing criteria set out above
- You provide false or misleading information to the agent that would be likely to affect the decision to grant you a tenancy
- You fail the Right to Rent check
- You withdraw from an agreed tenancy before the Deadline of Agreement has passed, unless the Landlord or agent has imposed conditions on the tenancy that could be deemed unreasonable or are in addition to the standard clauses of an AST, OR, there are exceptional circumstances beyond the tenants control that would prevent them from entering into an AST
DEFAULT FEES AND DAMAGES PAYMENTS
Once the tenancy has started, we reserve the right to charge the following fees such to the conditions set out in the Tenant Fees Act 2019.
Late Payment of Rent: Should the rent payment be more than 14 days late and this is without prior agreement with either the landlord or their agent, the agent may impose a fee. This will consist of the interest chargeable on the outstanding amount. (This may not be more than 3% above the Bank or England base rate) plus a further 3% ie not more than 6% of the outstanding amount calculated on a daily rate.
Lost Keys/Security Devices: Should the tenant lose or damage a key or security device/fob that subsequently needs replacing the Landlord or Agent may charge the tenant for the cost of its replacement. This must not exceed the actual cost of the device plus a reasonable administration charge. This charge will not exceed £25.00.
Changes to the Tenancy: A charge of £35.00 will be charged for any alterations to be made to an existing AST. This will include:-
- A change of sharer in a joint tenancy
- Permission granted to keep a pet at the property
- Permission to run a business (but not register a limited company) from the property
- Any other amendment which alters the obligations of the agreement, which will not be unreasonably withheld but may be subject to condition of the Head/Superior Lease (if applicable)
Early Termination Fee: Should the tenant request to end the tenancy before the agreed term and, there is no break clause in place, then the following conditions will apply:-
- A fee of £150.00 will be payable to cover the reasonable costs incurred by the landlord to secure a new tenant(s)
- The tenant(s) will remain liable for all rents and utilities due on the property until a new suitable tenant is found
Damages: The Landlord or their Agent may ask the tenant to pay for the repair or replacement of fixtures and fittings of the property if, the damage is a breach of the contract or, has been caused by neglect or negligence and cannot reasonable be left until the end of the tenancy eg a broken window. The Landlord may request that a suitably qualified contractor or tradesperson is used to undertake the repair/replacement but may not insist on a company or individual if the cost is deemed to be unreasonable.