Tenants Guide – Fees

The rental market moves at a fast pace and quality properties are often secured very quickly. If you are moving in with others, ensure you are all in a position to make a decision promptly after viewing the property. So, once you have found a property you want to move into, this is the ‘let agreed’ stage of the process, but remains subject to contract. This is when you will go through reference checks and pay a holding deposit, reference, tenancy agreement and inventory check charges.

Identification documentation

Once you have agreed the let in principal you will be required to provide documentation to confirm your identity and residence. For UK and non UK residents this will include providing an original document from each of the following lists:

Personal Identification

Valid passport
Valid full UK photo driving licence
National identity card
EU shotgun license
Birth certificate
Marriage or civil partnership certificate

Evidence of residency

It is important to note that, documentation must be dated in the last three months and the address must match your current address or as supplied on the reference application form.

Credit card statement
Recent bank or building society statements
Council tax bill
Utility bill
Mortgage statement
Current tenancy agreement(signed within the last six months)
Home service provider bill (for example broadband, digital TV statement) – homeowner’s insurance schedule
Letter from employer confirming address(signed, dated and printed on headed paper)
Correspondence relating to local housing allowance or benefit

Before the tenancy starts (payable to Michael Hodgson ‘the Agent’)

Holding Deposit: 1 week’s rent – A refundable Holding Deposit to reserve a property (capped at one week’s rent). This is to reserve a property. Please Note: This will be withheld if any relevant person (including any guarantor(s) 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 for Agreement as mutually agreed in writing)

Deposit: A refundable Tenancy Deposit (capped at five weeks rent) This covers damages or defaults on the part of the tenant during the tenancy

During the tenancy (payable to the Agent)

Payment of up to £50 if you want to change the tenancy agreement

Payment of interest for the late payment of rent at a rate of 3 {eb59f0607a2d07072b9e9fcbd64fa3c069e64b5a17643a348d828739d570d943}, late rent payment after 14 days rent was overdue capped at 3{eb59f0607a2d07072b9e9fcbd64fa3c069e64b5a17643a348d828739d570d943} above the Bank of England Base Rate (currently at 0.75{eb59f0607a2d07072b9e9fcbd64fa3c069e64b5a17643a348d828739d570d943}). Interest at 3{eb59f0607a2d07072b9e9fcbd64fa3c069e64b5a17643a348d828739d570d943} above the Bank of England Base Rate from Rent Due Date until paid in order to pursue non-payment of rent. Please Note: This will not be levied until the rent is more than 14 days in arrears.

Tenants are liable to the actual cost of replacing any lost key(s) or other security device(s). If the loss results in locks needing to be changed, the actual costs of a locksmith, new lock and replacement keys for the tenant, landlord any other persons requiring keys will be charged to the tenant.

Payment of any unpaid rent or other reasonable costs associated with your early termination of the tenancy, (covering the landlord’s costs in reletting the property, all rent outstanding until a new tenant is found (up to the maximum outstanding rent on the tenancy).

During the tenancy (payable to the provider) if permitted and applicable

Utilities – gas, electricity, water, Communications – telephone and broadband, Installation of cable/satellite, Subscription to cable/satellite supplier

Television licence, Council Tax

Other permitted payments

Any other permitted payments, not included above, under the relevant legislation including contractual damages.

Tenant protection

Michael Hodgson is a member of The RICS Client Money Protection Scheme (CMPS) which is a client money protection scheme, and also a member of The Property Ombudsman, which is a redress scheme.

Referencing criteria for UK and Non UK resident may include:

Financial background checks
- Up to three years address history check
- List of CCJ and any other adverse credit history
- Voters’ roll check
- Undisclosed address check
- Tenancy application score and fraud score
Bank details check (account and sort code verification)
Referencing company’s default database check
International Credit Bureau check
Income verification/employer’s reference
- How long have you been employed?
- Full time and permanent job
- Earnings – can you afford the rental amount, which is usually x2.5 the annual rent or x30 the monthly rent?
Future employment reference if require
Affordability check
Current landlord or managing agent reference
- Has the rent been paid on time
- Has the tenant looked after the property
- Would the landlord let to the tenant again in the future?

Circumstances when a reference company may suggest guarantor may be needed (agreed at the landlord’s discretion). A guarantor is someone who guarantees financial payments on your behalf – if you fall behind with your rental payments, your guarantor will be contacted for payment. If you think you might need a guarantor, you might want to ask a parent or close family member. The criterion for a guarantor is similar to that of a tenant (refer to ’personal identification section’), but will include proof of property owned within the UK. The guarantor should permanently live in England and Wales. It includes:

You have an Individual Voluntary Agreement (IVA)
You are a first time renter
You are a student
You are unemployed
You are self-employed
You do not hold UK citizenship or having been living outside the UK
You cannot provide the required confirmation of earnings

Initial Funds

Once your reference checks are complete you will be required to pay the initial funds, which includes the first month’s rent and deposit. All deposits for Asssured Shorthold Tenancies (AST) in England and Wales must be protected by one of the government approved Tenancy Deposit Protection Scheme (TDS). The landlord or agent will hold the deposit for the duration of the tenancy.
When you have paid the holding deposit / admin fee and secured the property subject to contract, the letting agent will draft the tenancy agreement. Once issued, read it carefully through and ask any questions you have before signing and returning it. You should always seek independent legal advice before signing the contract.

CLIENT MONEY PROTECTION SCHEME

RICS’ rules state that firms regulated by RICS shall preserve the security of clients’ money entrusted to it.

This means that a firm regulated by RICS, like Michael Hodgson, will ensure that:

Any client money is protected;
Any money entrusted to Michael Hodgson is held in a special client account, separate from the firm’s own money;
The client account is a bank or building society account that has the word ‘client’ in its title and contains only money that belongs to clients of Michael Hodgson;
The details of the client account in which money is held is always confirmed to clients directly.
Client money can only be used for those purposes that have been agreed with Michael Hodgson.
RICS also funds a Clients’ Money Protection Scheme. This is a free service provided to clients of firms that are regulated by RICS.