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IMPORTANT INFORMATION FOR TENANTS
There are a number of considerations when renting a property in the UK. The information given here is designed to provide some background to the terms and conditions of renting accommodation through GREEN LOCATIONS and to offer other useful information. It is not intended to be a substitute for other professional advice or to replace the personal service we extend to all our applicants.
CHOOSING YOUR PROPERTY
It is important to note that unless specific requests are made and agreed between the Landlord and Tenant prior to the agreement of terms, a property is let “as seen”. This applies to decoration and those items that are noted on the inventory. If you wish to ensure that specific items are included, eg: microwave oven, full sets of crockery, cutlery and linen, you are advised to request to see the inventory prior to making your offer.
HOLDING FEE
Once you have decided on a property and your offer is accepted Subject To Contract by the Landlord, you will be asked to pay a deposit equivalent to one weeks rent. At this stage we will cease to market the property whilst references are taken and the arrangements for the commencement of the tenancy are undertaken. This will come off the first month’s rental amount. If the Landlord decides not to proceed you will have your money refunded to you in full. Should you withdraw from the proposed tenancy prior to entering into the Tenancy Agreement, or the Landlord is forced to withdraw as a result of references which are not forthcoming, or which could not reasonably be considered as satisfactory, or of any fraudulent information provided, you will be liable for any reasonable costs incurred by the Landlord or Green Locations Ltd acting on behalf of the Landlord, which will be deducted from the holding fee. These costs will include the following:
- Cost of the preparation of the Tenancy Agreement (see below) and other pre-tenancy documents
- Cost of any references sought for which you have not separately pre-paid
- Cost of any cancellation fees charged by inventory clerks
- Cost of any repeat cleaning required prior to the start of a future new tenancy
- Cost of re-advertising the property to let
- Cost in lieu of rent lost to the Landlord by keeping the property empty and not offering it to other applicants.
REFERENCES
Before a tenancy can be granted, we must take up references on each Tenant. This is normally undertaken via a credit search agency. In some instances, eg in the case of younger Tenants or where there is insufficient employment or UK financial history (eg of less than 6 months continuous employment), it may be necessary to also provide a Guarantor, on whom references will also be taken. The cost of the credit search fee for a Guarantor is included in the Agreement Fee.
GUARANTOR
A Guarantor is someone who is prepared to undertake responsibility for the full amount of the rent should the Tenants be unable to do so at any time during the Tenancy. He / she will be required to co-sign the Tenancy Agreement and allow references to be taken. Please note that where the Tenants are “sharers” who have joint and several responsibility under the terms of the Tenancy Agreement (see Sharers overleaf) the Guarantor cannot restrict his responsibility to a share of the rent. He / she is effectively required to undertake to guarantee all of the Tenants and the full rental figure. Therefore in the case of sharers one Guarantor will be necessary. It is essential that you are in a position to supply a Guarantor and that he/she is aware of what is required of them before you put up an offer. Please do not hesitate to contact us if you have any queries.
In order to be a Guarantor on a Tenancy you have to:
- a) be a homeowner in England / Wales / Scotland / Northern Ireland
- b) be in full time employment / show a history of accounts (via an accountant who has worked for you for longer than 6 months) or provide proof of income (bank statements for at least 6 months).
- c) be prepared to be referenced and to co-sign the tenancy agreement together with the tenants
THE TENANCY
The minimum term is six months but generally properties are rented on an annual basis. If required a release clause, or option to renew for a further term can be inserted into the contract, however, this is subject to negotiation. Once the tenancy has commenced you have security of tenure for the fixed period, provided you are not in breach of the terms of the Tenancy Agreement. At the expiry of a fixed term tenancy the Landlord can take possession of his property (in the case of an Assured Shorthold Tenancy he is required to serve two months notice
of his intention to do so) unless it is agreed between you to renew the tenancy. You are then under an obligation to leave the premises. We would keep you in touch with the Landlord's intentions if we are also managing the property.
THE TENANCY AGREEMENT
The Tenancy Agreement must be signed by all Tenants and any Guarantor prior to occupation. The Agreement you will be signing will in most cases be a standard contract to which may be added clauses relating to any special requirements you may have, eg to keep a pet, which the Landlord may consent to. It is extremely important that you read your Tenancy Agreement, and should you have any questions relating to it, that you ask these prior to signing it.
SIGNING THE AGREEMENT
It is our policy to execute Tenancy Agreements by dating the signed documents as soon as we are in possession of both parts (ie. The part signed by the Tenant and the part signed by the Landlord). Once dated, the parties will be legally bound to the Tenancy. By returning the signed Tenancy Agreement to us, we will treat it as your authority for us to execute the Tenancy Agreement without further reference to you, unless you advise us to the contrary
ADMINISTRATION FEE
We charge a fee to cover the cost of the credit reference search and the preparation of the Tenancy Agreement This is a minimum fee of £117.50 (inclusive of VAT) or £58.75 (inclusive of VAT) per person in the event of three or more sharers.
RENEWAL OF TENANCY AGREEMENT
Normally two months prior to the end of the existing Tenancy Agreement we will contact you and the Landlord to establish if both parties would be happy to renew the contract for a further term. If both parties are in agreement the terms of renewal are finalised and the paperwork is drawn up. Green Locations does not charge a fee for the renewal of the Agreement.
SHARERS
Under the terms of the Tenancy Agreement individuals renting a property together (“sharers”) have “joint and several” liability which gives them all equal responsibility for adhering to the terms and conditions contained in the Tenancy Agreement and makes each and every one of them responsible for the full amount of the rent. This means that should one of the sharers default in their rental payment, the other Tenants are liable and responsible for the outstanding balance.
Equally, in the case of damage to the property, if damage is caused by one Tenant, the other Tenants are deemed equally responsible when deductions are made from the security deposit (see later). Any disputes between sharing Tenants relating to the security deposit are the sole responsibility of the Tenants to resolve and the Landlord or his agent cannot act as mediators in such disputes. This also applies to the termination of a Tenancy, one sharer wishing to end a tenancy (provided there is provision to do so within the terms of the Tenancy Agreement) is deemed to be doing so on behalf of all the Tenants.
THE RENT
Unless otherwise stated, the rent is exclusive of telephone, water, gas, electricity and council tax. The normal method of payment is by calendar monthly instalments in advance by standing order, subject to negotiation. The first payment is due on or before the commencement date of the tenancy in the form of cleared funds ie Bankers Draft or Transfer. Personal cheques may be accepted in special circumstances, but must be received 7 working days before the commencement date to allow time for clearance.
The rent is calculated on a calendar month basis; i.e. weekly rent multiplied by 52, divided by 12 (see Conversion Table overleaf). Tenants should note that rent will only be accepted from those persons named on the tenancy Agreement and only one payment per property is acceptable. Tenants sharing a property should set up a joint bank account from which the rent can be paid by standing order. Rents are due on the date shown on the agreement and rent demands and reminders are not sent. Please note standing orders are usually set up three days prior to the rent due date to allow funds to clear into our account by the rent due date. Please note that interest will be charged on late payment of rent.
Conversion Table – Weekly to Monthly Rentals
Monthly rental payments are calculated as follows:
(Weekly Rent x 52) / 12
eg: Weekly rent of £200 per week = £866.67 per calendar month
£500 x 52 = £26,000 / 12 = £2,166.67
SECURITY DEPOSIT
An amount usually equivalent to six weeks of the agreed rent is required as security against damage and loss not considered to be reasonable fair wear and tear. This is also payable on or before the commencement date of the tenancy in the form of cleared funds. Unless otherwise agreed, the deposit will be held by Green Locations in an interest-bearing account and at the end of the tenancy the deposit plus the interest accruing will be returned to you, less any agreed deductions for. Please note that at no time can these monies be used as payment for rent.
Green Locations hold deposits as Stakeholder, which means that we are acting in an impartial capacity, as an unbiased third party. The duty of the Stakeholder is to liaise with both parties at the end of the tenancy with regard to any claim the Landlord may have against the Tenantıs deposit, and ultimately to seek agreement from both parties as to the final apportionment. The Stakeholder is not allowed to release any deposit monies to either party until such time as both parties are in agreement. Whilst the Agent can advise both parties on the fairness of any claim, it is not up to the Agent to take sides or to arbitrarily settle the claim himself. In addition, the deposit will be protected in compliance with the Compulsory Tenancy Deposit Protection Scheme requirements introduced under the Housing Act 2004. The Scheme has two main purposes; to safeguard tenancy deposits to ensure Tenants will get back all or part of their deposit to which they are entitled, provided they have kept the property in good condition; and to facilitate the resolution of disputes arising in connection with such deposits by means of an Alternative Dispute Resolution Service (ADR).
Green Locations have joined the Insured Scheme administered by The Dispute Service, and all deposits held by us will be protected under this Scheme. Further details of the legislation can be found at www.direct.gov.uk/tenancydeposit
INVENTORY
Prior to taking possession of the property an inventory of the condition of the property and its contents and their condition will be made (usually by an independent inventory clerk). At the start of your tenancy, immediately prior to your taking occupation, the inventory clerk will go through the inventory room by room with you and you will be asked to sign a declaration to confirm the contents and their condition. You will then be given the keys and allowed occupation of the property.
At the end of the tenancy the same process is repeated and any dilapidations / damage will be noted.
PAYMENT OF INVENTORY
The Landlord bears the cost of the making of the inventory and the checking in. The Tenant pays for the checking out. This cost varies depending on the size of the property and the extent of furniture and furnishings included.
PROFESSIONAL CLEANING
Most properties we find Tenants for are professionally cleaned prior to occupation by any Tenant. The standard of cleanliness is indicated at the Inventory Check In Report. If your property was professionally cleaned prior to your occupation you are responsible for arranging and paying for professional cleaning prior to the Inventory Check Out.
Professional cleaning includes: steam cleaning of all carpeted areas, cleaning the windows inside and out, and cleaning the general areas to a professional standard (ie. Cleaning and de-frosting the fridge/freezer, and inside the kitchen cupboards, for example.) PLEASE NOTE PROFESSIONAL CLEANING IS FAR SUPERIOR TO THE LEVEL OF CLEANING THAT ANY DOMESTIC CLEANER CAN ACHIEVE. We have a cleaning company that we can recommend. Please contact us for further details.
BEHAVIOUR
During the tenancy you will be expected to act in a ‘Tenant-like’ manner. This means not abusing the property or infringing upon the peaceful enjoyment of the neighbourhood. Again this is referred to in the Tenancy Agreement. Failure to comply with the Tenancy Agreement may result in legal action being taken.
SERVICES AND COUNCIL TAX
You must inform the relevant gas, electricity and water suppliers that you have moved into the property and provide them with the opening meter readings and / or date your tenancy commenced. The meter readings for gas and electricity are usually provided by the Inventory Clerk and will appear on the Inventory report. Some utility providers may require a deposit if you have not previously had a supply in the UK in your name.
TELEPHONE
You are required to transfer the telephone account into your name at the commencement of the tenancy. You are also required to transfer the telephone line out of your name at the termination of the tenancy. It is the Landlords responsibility to provide one working BT telephone line at the property. In the event that the line has been disconnected you should inform us or you should contact British Telecom on Freephone 150.
ACCESS
The Landlord and / or his agent will require access to the property from time to time. There will be a clause to this effect in your Tenancy Agreement. If we are managing the property we will usually require access every 4 months to make a report on the physical state of the building and to make recommendations on decorating, repairs etc. Gardeners and tradesmen may also require access from time to time however the infringement on your privacy will always be kept to the minimum possible.
GUESTS STAYING
Whilst it is expected that Tenants may wish to have occasional guests to stay, please be aware that this could constitute a breach of your Tenancy Agreement. Long term or multiple guests staying in the property may result in immediate termination of the lease.
MANAGEMENT
If you have any problems during the tenancy and we are not the Managing Agents, please refer to your Landlord or the Landlord’s appointed Managing Agent.
If you have any problems during the tenancy and we are the Managing Agents, please call the property management team on: 020 8767 9700
MAINTENANCE
If you have any problems during the tenancy and we are the Managing Agents we will be able to respond quickly to your needs. We will in any case be happy to provide information on useful services in the area. In all instances we will use our best endeavours to ensure that repairs are carried out as soon as possible and with the minimum of inconvenience to you.
Any routine maintenance is the responsibility of the Landlord, for example making good water damage from leaks beyond your control, or maintenance of appliances (see below). As Managing Agent we will appoint reputable contractors who are known to us to rectify such problems as quickly as possible. However delays may occur should new parts have to be ordered or if specific manufacturers over whom we have no control have to be called out. Similarly, in the case of new properties that are under guarantee by the Developer, the timescale and appointment of contractors is often not under the Landlord or Agent’s control.
CONTRACTORS
In the event that it is necessary for a contractor not known to Green Locations to attend the property to undertake maintenance or repair work, for example a British Gas or British Telecom employee, it will be the responsibility of the Tenant to ensure that somebody is present at the property to allow access and wait at the property until the work is completed. This applies to all properties, irrespective of whether or not Green Locations are instructed to manage the property on behalf of the Landlord.
APPLIANCE REPAIRS
Unless otherwise stated in the Tenancy Agreement, all appliances noted on the inventory will be maintained at the cost of the Landlord. Any routine maintenance is the responsibility of the Landlord, for example if a new part is required due to age, or making good water damage from leaks beyond your control. However if a serviceman reports that damage was caused by improper use rather than ‘fair wear and tear’, the cost of repair / replacement will be your responsibility.
All maintenance problems should be reported to the Property Manager (or Landlord if we are not managing the property) immediately. In some cases there may be a simple solution which would rectify the problem instantly with no cost to yourself, for example:
- Vacuum Cleaner - checking bag and hose for blockages
- Boiler / Heating - check timers and thermostats are correctly set
- Washing Machine - check that filters are cleaned regularly
- Dishwasher - ensure rinse aid and salt are kept topped up
- Oven / Cooker - check that the timer or automatic function is set
YOUR RESPONSIBILITIES
During your tenancy you are responsible for the upkeep and maintenance of the property. This includes:
- Replacing broken glass (if broken by you or any invitee of yours)
- Changing fuses, light bulbs, and tap washers
- Repairing any damage to appliances caused by misuse
- Keeping drains and guttering free of obstructuions (caused by you or any invitee or yours)
- Keeping the property sufficently ventilated to ensure condensation does not build up in problem areas
- Forwarding any of the Landlord’s mail to his Agent
- Maintaining the garden in accordance with the terms of the Tenancy Agreement
- Ensuring that windows and doors are always securely locked when the property is unattended and any burglar alarm is set
- Taking the necessary steps to prevent freezing of the water and heating systems, particularly if you are absent from the property during the winter months by keeping the heating on a timer to come on twice a day for example.
- Paying of any bills incurred from calling out contractors not approved by the Landlord or his Agent – other than in cases of emergencies where you have been unable to contact the Landlord or his Agent.
- Reporting to the Landlord or his Managing Agent any problems that may arise so remedial action can be taken quickly to minimise the damage
- In leasehold properties (mainly flats and maisonettes) the Tenant is bound to the rules and regulations of the Head Lease or any Resident Association.
Please note that whilst a degree of ‘fair wear and tear’ (deterioration through normal usage) is to be expected, any damage to the property or the Landlord's belongings will be your liability. For the avoidance of doubt ‘wear and tear’ does not embrace dirt or dust that was not in a property prior to the tenancy.
SERVICES AND COUNCIL TAX
We will write to the utility companies for electricity, gas, and water services (but not telephone) and notify them of the change of user at the commencement and termination of the tenancy. The Landlord and Tenant must sign for the supplies with the utility companies. We cannot be held responsible for any disconnection, and we cannot guarantee the utility companies will amend their records. Therefore we ask that Tenants confirm that the utilities have been transferred and confirm correct meter readings have been forwarded.
We will write to the local Council Tax office and notify them of the change of occupier at the commencement and termination of the tenancy. We cannot guarantee the local Council Tax office will amend their records. Therefore we ask that Tenants confirm the correct details have been recorded by the local Council Tax office.
TV LICENCE
Please note that the Tenant is responsible for paying the licence fee in respect of the use of any television set in the property during the tenancy.
PETS
Animals are not normally allowed in rented accommodation. If you wish to keep a pet, you must advise us as special permission must be sought. However, this may not be granted or if permission is granted, you may be required to provide an additional deposit as security against any related damage to the property and may be asked to pay a non-refundable flee deposit.
LINEN
Even in furnished properties, linen is not normally provided in rented accommodation.
INSURANCE
During the course of the tenancy the Landlord’s contents only are insured for forcible entry, theft and water / fire damage caused through a system fault or failure. You should therefore insure your own belongings.
STAMP DUTY
As a Tenant you will be liable to pay stamp duty if the rental amount is in excess of £120,000 over the course of the tenancy. Further details can be obtained from the Inland Revenue Helpline on 0845 603 0135.
OVERSEAS LANDLORDS TAX LIABILITY
Please note that if the Landlord lives abroad and you pay your rent directly into his account you should satisfy yourself that you are not liable to any tax that may be levied against the rental income. Further information can be obtained from The Inland Revenue Centre for Non Residents’ Helpline on 0151 472 6208
SUBSTITUTION OF TENANT
It is possible to make a substitution of one Tenant for another during a tenancy, however it is subject to approval from the Landlord. If approved, we will prepare additional paperwork for the substitution and carry out a full credit check on the new Tenant. The fees for our administration costs for substitutions are £117.50 (inc. of VAT) per person. There will be no new inventory check in and the new Tenant must acknowledge and take on the full responsibility of the current condition of the Property and any existing damage which may have occurred. The new Tenant pays the outgoing Tenant their share of the deposit (no monies are distributed by Green Locations) and should keep back a proportion of monies in case of any existing damage in the house which will need to be paid for at the end of the tenancy.
Should you wish to discuss any of the above, or have any further queries, please do not hesitate to contact us. |