Housing Act Tenancies
Assured Shorthold Tenancies (AST)
An AST is the most common type of tenancy if you rent from a private landlord or letting agent.
You usually have an AST if:
you don’t share any accommodation with your landlord and they live elsewhere
the rent is less than £100,000 a year
the tenant is an individual and is using the property as their main home
1. Holding Deposit
What is it? Once you’ve found the property you’d like to let and your application has been agreed in principle with the landlord we’ll ask for a holding deposit. This payment is taken to show your commitment to the property whilst references are taken and we progress the tenancy.
How much will it be? The Holding Deposit is equivalent to one weeks rent, and will be put towards your first rent due on completion of the tenancy. For example, if the rental is £1000 per calendar month the holding deposit you’ll have to pay will be £1000 x 12 months / 52 weeks = £230.77.
Do I get it back? This deposit is put towards your first rent due on completion of the tenancy. However, this will be withheld if any relevant person (including any guarantors) withdraw from the tenancy, fail a Right-to-Rent check, provide materially significant false or misleading information, or fail to sign their Tenancy Agreement (and/or Deed of Guarantee) within 15 calendar days (or other deadline if mutually agreed in writing). If the landlord decides not to go ahead with the tenancy and none of the above applies, we’ll repay the holding deposit to the person who made the payment within seven days of the date the landlord decides not to go ahead.
When you pay If your tenancy is an assured shorthold tenancy, we’ll register your deposit with the deposit protection scheme we belong to, once registered the deposit money will be protected in line with the scheme rules. Any money we hold is protected through the Royal Institute of Chartered Surveyors (RICS) client money protection scheme. For exclusions and limits see rics.org/ clientmoneyprotectionscheme.
2. Traditional Deposit
What is it? This is a security deposit that allows for a landlord to cover expenses in the event that you do not meet your obligations under the terms of the tenancy.
How much will it be?
* Rent under £50,000 per year – Five weeks’ rent
* Rent over £50,000 per year – Six weeks’ rent
Who keeps it? The deposit will be registered with a Custodial Deposit Scheme. This means that no deductions can be made until you and the Landlord have reached an agreement or there is a judgement by the courts, or the adjudicators of the specific deposit protection scheme have made a final decision.
3. Specially negotiated clauses in tenancy agreement - any specially negotiated clauses for the tenancy agreement, agreed after the tenancy agreement has been signed will incur a fee of up to £50, or for any reasonable costs incurred if these are higher than £50.
4. Change of sharer - Up to £50 for one new reference and providing a new tenancy agreement, or for any reasonable costs incurred if these are higher than £50.
5. Early termination (Tenant's request, granted at landlord's discretion) - All costs, fees and charges incurred by the landlord for allowing early termination including the agent’s existing or re-letting fees.
6. Stamp Duty Land Tax - Payable on tenancies where the rent (for the whole time a tenant stays in the property) exceeds £125,000
7. Bank charges - There is no charge for payments to UK bank accounts, if you ask us to pay an overseas account we’ll charge £30 per payment.
8. Late, unpaid, returned rent payments - 3% above the base rate of Bank of England per annum, calculated daily on balance due.
9. Lost Keys or Key Fobs - Any cost for the replacement of keys, fobs, security devices or associated items which have been lost, damaged or broken. If extra costs are incurred there will be a charge of £15 per hour (inc. VAT) for the time taken replacing lost keys or other security devices.
10. Cleaning - Please be aware that when you return the property, it must be cleaned to a professional standard or to that stated in the inventory and check in report. Failure to do so may result in a deduction of the cost to do so from the traditional deposit.
Non-Housing Act Tenancies (NHA)
Common Law Tenancies
A tenancy would be created as a NHA if the rent is over £100,000 a year, or where it is not the tenant’s main home. Company tenancies are also NHAs. A company let is when a company takes on a residential tenancy agreement as the tenant, rather than an individual. The tenancy will be in the company name. The company employee will live in the property.
1. Tenancy Application Charge (PTAC) - Equivalent of one weeks rent or £600, which will be put towards your first rent due on completion of the tenancy. If you withdraw from the tenancy: Private tenancies – minimum of £300 per person. Company tenancies – minimum of £600.
2. Tenancy paperwork - £300 per tenancy for contract negotiation and arranging the tenancy
Company reference checks £120 per reference
3. Deposit - Usually equivalent to six weeks rent or if you have a pet this will usually be equivalent to eight weeks.
4. Withdrawing from the tenancy Private tenancies – minimum of £300 per person. Company tenancies – minimum of £600.
5. Check-in and/or check out
From £120 to £620 approx. Check your tenancy agreement to confirm who is responsible for paying this charge.
6. Call out services (inc out of hours)
£60 per hour and/or you’ll have to pay the contractors invoice where your actions or lack of actions result in us or a contractor attending the property to remedy the situation.
7. Last minute cancellation or no cancellation of pre-arrange visits.
£60 per visit and any contractor invoice. If you cancel an appointment less than 24 hours before, or we have arranged to visit your property and we can’t gain access.
8. Hourly rate
£60 plus any replacement costs if we or the landlord have to replace any damaged or broken items, or return any fixtures or fittings to their original position, as per the inventory.
9. Any overseas payment charges
£30 per payment. Unless you ask us to pay monies to a UK bank account instead.
10. Late/unpaid/returned rent payments £60 late payment charge and 3% above the base rate of Bank of England per annum, calculated daily.
Change of sharer £375
Additional sharer £75 if they change at the same time as the above
11. Renewal negotiation £180 for each renewal. If additional referencing is required we’ll also charge you £45 per reference.
12. Any tenancy agreement specially negotiated clauses agreed after the tenancy agreement has been signed. £180 each time a change is requested and agreed by the landlord
13. Early termination (at landlord's discretion) All costs, fees and charges incurred by the landlord for allowing early termination including the agent’s existing or re-letting fees.
14. Stamp Duty Land Tax This tax is payable on tenancies where the rent exceeds £125,000
15. Bank Charges There is no charge for payments to UK bank accounts, if you ask us to pay an overseas account we’ll charge £30 per payment.
These charges are in line with Government regulations. If you have any queries your local lettings team will be able to help you.
Ombudsman services provided by PRS: theprs.co.uk/contactus