applicants guide pre-tenancy administration

Transcription

1 Copyright Rushbrook & Rathbone Limited February 2015 applicants guide pre-tenancy administration We understand that renting a new property can seem like a stressful and complicated process. Want to know the good news? the letting agency who has given you this guide works in partnership with us:rushbrook & Rathbone Ltd. Our job is to handle all the pre-tenancy formalities including references, the collection of rent and deposits and preparing your tenancy agreement, making sure the whole process is as seamless and efficient and as possible. Knowledge is reassurance, so we have put this Applicant s Guide together to help you understand some of the formalities and costs involved with renting a property. If the property you have chosen is fully managed, we will also be there for you, not just at this initial stage, but through the life of your tenancy. All properties managed by Rushbrook & Rathbone have a dedicated property manager to deal with any day to day repairs, remedial works and tenancy enquiries. You will be given the name and contact details of your property manager as soon as your application for tenancy is concluded. Then, you can put the kettle on and enjoy your new home, with no stress and no hassle. FEBRUARY 2015 T: F: E: enquiries@rushbrookrathbone.co.uk W: Place T: E: sales@a-place.co.uk PAGE 1 OF 9

2 contents Making an Offer and Moving In Proof of Identification Your Offer Holding Monies Tenancy Administration and Reference Fees Reference Application Guarantors Security/Tenancy Deposit The Tenancy Agreement The Inventory, Check In and Keys Rent and Utilities Management of council tax, utilities and media accounts Tips for Moving House Schedule: Pre Tenancy Fees & Charges Other Fees and Costs that may apply during a tenancy PAGE 2 OF 9

3 Making an offer and moving in Proof of Identification In order to comply with immigration and money laundering legislation and to avoid identity theft, each applicant will be asked to provide photographic proof of identity, evidence of your current address and in some cases, confirmation of your right to reside in the United Kingdom. You will be required to present original documents for the letting agent to verify and copy. Please be prepared to provide this information when you are ready to make an offer as applications for tenancy, and the tenancy referencing procedure, will be subject to delay until proof of ID has been made available. (typical documentation required includes: Passport, Drivers Licence, ID Card, Utility Bill, Bank Statement, Council Tax, - Residents Permit, Visa, Overseas students: formal letter offering UK study) Your Offer In order to ensure your offer is successful and to avoid disappointment, you should be prepared to conclude your application for tenancy with the minimum of delay. Here are details that will need to be agreed in order to confirm your offer and process your application for tenancy: Amount of monthly rent Rent payment frequency (monthly, quarterly etc) Start date for your tenancy (note that your rent must be paid by this date every month) The term of tenancy (i.e. 12 months) The amount of your Tenancy/Security Deposit (usually 6 weeks rent) The amount of Holding Monies required to secure your application whilst references are being processed Details of any Special Conditions agreed such as: decoration, cleaning, remedial works, or an early Release/Break Clause If applicable: seek permission to keep a pet at the property (subject to approval, expect to pay a higher Tenancy Deposit plus an additional non-refundable deposit. You may also be asked to provide a reference for your pet) Full details of your offer will be put to the landlord and once accepted, subject to satisfactory references, you will receive an from R&R to verify the details your offer and asking you to confirm your full contact details. Holding Monies To secure your chosen property whilst your references are being processed you will be asked to pay Holding Monies, the amount is usually equal to two weeks rent. Holding Monies are taken to reserve your offer on the property. The property may still be marketed until such time as your references have been received and tenancy agreements are signed, however this money is taken to show your intention to proceed with the tenancy and we will not offer the tenancy to anyone else whilst we are waiting for satisfactory references provided that you supply the information we request promptly. The Agent holds the money whilst references are taken. Should you fail to supply sufficient information in a timely manner to the reference company in order for them to proceed with the reference or should you fail referencing, this money is forfeit. Should your references prove satisfactory these holding monies will be set off against the Security Deposit that will be invoiced at the beginning of the tenancy. PAGE 3 OF 9

4 Tenancy Administration and Reference Fees At the same time as you are asked to pay the Holding Monies, you will be asked to pay a Tenancy Administration fee (the tenants share of administration associated with setting up a tenancy) and a reference fee - one for each prospective tenant. Please note that no portion of the Tenancy Administration fee will be refunded once your application for referencing has been processed by the reference agency. Depending on the circumstances of your tenancy, fees for the following pre-tenancy services may apply: General administration fees Reference fees (including credit checks, bank, guarantor, previous landlord etc) Application fees Fees for drawing up tenancy agreements Inventory fees, including check in and check out fees Guarantor arrangement/application fees Additional occupant fees Pets disclaimer fees/additional pet deposit Non-returnable holding monies Guarantor references and Deed of Guarantee Changes to the final draft of the tenancy agreement A schedule of the above fees can be found at the back of this document or online at: Reference Application Once the holding monies, tenancy administration and reference fees have been paid to R&R, we will provide a link for you to go on line to complete and submit your reference application form to the reference company. Subject to final approval from the landlord, it is important to note that a prospective tenant, or tenants if jointly and severally liable, is required to earn a multiple of 2.5 times the annual rent. E.G. A weekly rent of 300 equals a total annual rent of In this example, a prospective sole/single occupant tenant would need to earn a gross salary of pa. If as a sole tenant you earn less than the required amount you will be required to provide a guarantor. The following information will be verified by the independent company who process your reference application: Your National Insurance Number Photographic identification: your Passport or Drivers Licence Reference from previous landlords The details of where you have lived during the past 3 years Your bank details, including bank name, account number and sort code Details of your current employment, your employer, job title, salary. Previous employer s details may also be required. A credit check PAGE 4 OF 9

5 Guarantors It is not uncommon for a guarantor to be requested, for example: if you have only recently started in your job, or, you work on a short term contract basis, or, you have a history or rent arrears or have County Court judgments under 1000 (please note that recorded CCJ s over 1000 will result in failed references). If any of these situations applies to you then please tell the letting agent before making your offer, paying your Holding Deposit and completing your reference application. If your application is to be supported by a Guarantor then he or she will be obliged to complete an on-line reference application and in the event of any rental default during the term of tenancy, they will be expected to pay the rent and/or be held responsible for the upkeep of the property. The annual income requirement for guarantors is 36 times the applicants share of the rent. Security/Tenancy Deposit The security deposit is payable prior to occupation of the property and will be held against non-payment of rent and to ensure that any damages over and above fair wear and tear can be remedied at the end of the tenancy. If you are entering into an AST, the law requires all Landlords and Agents to register and protect your deposit within a Government approved scheme. There are three Government approved schemes, they are: The Deposit Protection Service (DPS), MyDeposits and the Tenancy Deposit Scheme (TDS). Full details of each scheme can be found under the following links: The Tenancy Agreement With the exception of properties with annual rents in excess of 100,000 per annum and company tenancies, your tenancy is likely to be a fixed term Assured Shorthold Tenancy Agreement (AST). The fixed period is agreed at time of offer and is usually for a term of 6 or 12 months. It is important to take time to read and understand your Tenancy Agreement before signing it. In the event there is anything in the Agreement you do not understand you are advised to take independent legal advice. The Inventory, Check In and Keys The Inventory is a detailed list of the property and all its contents. A Schedule of Condition/Check In report will be drawn up at the start of your tenancy which will be agreed by both parties as you move in. The Inventory and Schedule of Condition/Check In report will be used at the end of your tenancy to check for any losses or damage. It is important that, if possible, all tenants are present at the Check In when the inventory document is checked and verified. Utility meter readings will be taken and recorded and Check In and Check Out. The number of keys issued to, and returned by, you will also be recorded on both reports. Most landlords will employ the services of an independent inventory clerk to carry out this work and it is usual for the landlord to meet the cost of inventory services at the Check In and for the tenant to pay the cost at Check Out. Please note that keys to the property will not be released unless or until the rent, security/tenancy deposit and fees have been paid in full and the tenants signed copy of the Tenancy Agreement has been safely received. PAGE 5 OF 9

6 Rent and Utilities Unless otherwise agreed in advance, rents are collected by Standing Order. Cleared funds must be available on or by the date stipulated in the Tenancy Agreement. This means that you need to instruct payment by Standing Order to leave your account at least 4 days before the rent due date in order to ensure payment is received, and cleared, on or by the due date. It is usual for the tenant to be responsible for the payment of local council tax, water rates, gas, electricity and telephone costs. As part of our administration service, meter readings taken by the inventory company at time of Check In, will be advised to the utility providers supplying the property. R&R will also inform the local council. However, we do strongly advise you to contact all services to confirm your new account instructions Management of council tax, utilities and media accounts As managing agents, we have a duty of care to all our clients and as such we have a legitimate interest in making sure that any change of tenancy information is supplied to the relevant providers to ensure that utility charges are directed to those responsible both at move in and move out. It is also important to ensure that all of our tenants are offered best advice when it comes to additional utility options available within their new home. To ensure the above occurs both seamlessly and securely we work alongside Innovative Energy Solutions Ltd (IES) who, via their product Utilitease, are our chosen utility management providers. IES Utilitease offer utility support services to all of our tenants via their Utility Support Team, who in turn will contact you to ensure that you understand your rights in relation to utility services within your current and prospective rental property. Under the Data Protection Act 1998, IESolutions Ltd must comply with certain requirements which are designed to ensure that any data held is processed with due care and attention. Your information will be handled in accordance with the relevant data protection legislation at all times and any data collected will only be used to allow IES Utilitease and any subsequent service providers to meet your stated requirements. In order that IES Utilitease are able to monitor supplier performance and customer satisfaction, these third parties will pass certain information back to IES Utilitease, such as fulfilment and general feedback data. IES Utilitease are committed to privacy for all clients and they guarantee to never sell on client data at any time. Furthermore, your information will only be used for the purposes as stated above. This advice and support service will always be provided on a no obligation basis. After the initial introduction call(s) IES Utilitease like to keep you periodically informed electronically of any specific updates or new deals available which they feel may be of interest to you. Respect for your privacy is paramount and if you prefer not to receive updates IES Utilitease will respect your wishes. PAGE 6 OF 9

7 TOP TIPS FOR MOVING HOUSE the motto is be prepared 4-6 weeks before your moving date: Plan where main items of furniture will fit into your new home Establish costs get 3 quotes from removal firms, perhaps consider hiring a van yourself (If you choose to do it yourself remember you may need to pre-book kerbside parking space for your moving day) Make sure your belongings are insured during the move, some movers offer to arrange cover for you, they will also pack and unpack if you wish Check that the removal company are members if the British Association of Removers Read the contract make sure you know what to do if any of your possessions get damaged in the move. Check your general household insurance too Make an inventory of everything to be moved and give a copy to the movers Avoid busy times such as Bank Holidays, Fridays and end of school terms Make note of the local council and utility companies you will need to inform Arrange to have your mail redirected by the post office you can do this online Check out installations at your new property, order a new landline/internet connection if appropriate Start packing early! all items that will not be needed before your move Use your move to have a general tidy up - remember that charity shops may appreciate any unwanted items. Bin unwanted articles as you go and don t forget your food cupboards and freezer too Make arrangements for children and pets to be looked after on moving day 10 days to go: Cancel regular deliveries Plan to defrost the fridge and freezer a couple of days before you move Hire packing cases if not supplied by your movers Arrange final meter readings for water/gas/electricity Ask for your final telephone and internet bill and arrange to stop the line Send details of your new address to family and friends Label packing boxes with contents and the room they belong in On the day: Turn off appliances Take final meter readings Pack a survival kit: tea/coffee/milk/mugs, water, sandwiches, cleaning materials, toilet roll, mobile phone charger, important documents, bed linen, and ingredients for a first night easy meal (or the phone number of a good take-away!) Happy moving! PAGE 7 OF 9

8 SCHEDULE: Pre-Tenancy Fees and Charges Depending upon your particular circumstances, the following schedule shows the range of fees that may apply prior to moving into a property: All fees are subject to VAT at the current rate PAGE 8 OF 9

9 Other fees and costs that may apply during a tenancy Depending upon your particular circumstances, the following schedule shows the range of fees that may apply during a tenancy: All fees are subject to VAT at the current rate PAGE 9 OF 9